Mr. Ohad Haber reports

WATER WAYS REPORTS Q1 2023 FINANCIAL RESULTS: SALES OF $4.1M AND NET PROFIT OF $0.4M

Water Ways Technologies Inc. has filed its interim financial statements and managements discussion and analysis (the MD&A) for the three-month period ended March 31, 2023. A comprehensive discussion of Water Ways's financial position and results of operations is provided in the MD&A, filed on SEDAR.

Ohad Haber, chief executive officer and chairman of the board of Water Ways, states: "The first quarter of 2023 shows the shift in our strategy. Over 60 per cent of our revenues were derived from the Canadian market which also resulted in an improved gross profit of over 21 per cent. In the months we also hope to increase our project revenue in Canada and improve our margins."

On Monday, June 5, 2023, at 9 a.m. Eastern Time, Water Ways's CEO, Ohad Haber, chief financial officer Dor Sneh and Ronnie Jaegermann, director, will host a live webinar with a corporate update, earnings discussion and outlook for 2023 and beyond. An investor question-and-answer session will follow.

Highlights -- Q1 2023 (the following information should be read in conjunction with, and is qualified by, the statements and the MD&A)

• Company's sales were $4.1-million for the three-month period ended March 31, 2023, compared with $4.6-million for three-month period ended March 31, 2022.
• Company's net profit was $900,000 for the three-month period ended March 31, 2023, compared with a net profit of $800,000 in the three-month period ended March 31, 2022.
• Company's gross margin was 21.5 per cent for the three-month period ended March 31, 2023, compared with a gross margin of 17.5 per cent in the three-month period ended March 31, 2022.
• Derivative liability -- Warrants and convertible debentures relates to a classification under IFRS (international financial reporting standards) of outstanding warrants issued as part of private placements of convertible debentures units and equity units which closed in the fiscal year 2021, 2022 and 2023, as a non-cash liability that arises due to the difference in operational currency and functional currency. This liability is revalued each period by an independent third party. The revaluation is at fair value through profit and loss.

Water Ways Technologies financial results summary ($ in thousands)

The attahced tables set forth the highlights of the consolidated financial information of the company and should be read in conjunction with the statements and the notes thereto.

About Water Ways Technologies Inc.

Water Ways Technologies, through its subsidiaries, is a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers. Water Ways Technologies competes in the global irrigation water systems market with a focus on developing solutions with commercial applications in the micro and precision irrigation segments of the overall market.

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