Mr. Ohad Haber reports

WATER WAYS REPORTS Q3 2023 FINANCIAL RESULTS

Water Ways Technologies Inc. has filed its interim financial statements and management's discussion and analysis (MD&A) for the three- and nine-month periods ended Sept. 30, 2023. A comprehensive discussion of Water Ways' 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: "We are still in the process of shifting our business to North America. I am very please that we have improved our overall performance after significant cost cuts we made in recent months."

Highlights -- Q1 through to Q3 2023 (The following information should be read in conjunction with, and is qualified by, the statements and the MD&A.):

• The company's sales were $8.1-million (Canadian) for the nine-month period ended Sept. 30, 2023, compared with $12.1-million (Canadian) for the nine-month period ended Sept. 30, 2022. The decline in revenues continues to be attributed to three factors. Firstly, the company's strategic decision to discontinue working with unprofitable and unstable customers and territories played a significant role. Instead, the company shifted its focus to developed countries. This deliberate change in focus and customer restructuring ultimately resulted in a decrease in the company's revenues. Secondly, the reduction in revenues can also be attributed to the effects of stagnation and inflation. These factors greatly impacted customers, making it more difficult for them to invest in projects and capital goods. Consequently, customers are encountering challenges in acquiring goods for inventory, a situation different from previous years. Additionally, they are facing obstacles in financing their projects due to the impact on increased interest rates and borrowing costs. Thirdly, global climate changes, especially in Canada, have contributed to lower-than-expected sales of Silage products.
• The company's gross margin was 16.5 per cent for the nine-month period ended Sept. 30, 2023, compared with a gross margin of 17.8 per cent for the nine-month period ended Sept. 30, 2022.
• The company reduced its marketing and general and administrative expenses by 25 per cent for the nine-month period ended Sept. 30, 2023, compared with Sept. 30, 2022.
• Derivative liability: Warrants and convertible debentures relate 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 exercise price currency and functional currency. This liability is revalued each period by an independent third party. The change in fair value is charged through the company's profit and loss statement.

Water Ways financial results summary (in thousands of Canadian dollars)

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

Water Ways, through its subsidiaries, is a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers. The company 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. At present, Water Ways' main revenue streams are derived from the following business units: (i) projects business unit; and (ii) component and equipment sales unit. The company is capitalizing on the opportunities presented by micro and smart irrigation, while also making a positive mark on society by making these technologies more widely available, especially in developing markets, such as Africa and Latin America, and developed markets, such as China and Canada. Water Ways' irrigation projects include vineyards, cotton fields, apple and orange orchards, blueberry, medical cannabis growers, fresh produce cooling rooms, and more in over 15 countries.

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