Mr. Todd Ziniuk reports

ZEDCOR INC. ANNOUNCES EXPANDED FLEET OF MOBILEYEZ SECURITY TOWERS AND PROVIDES UPDATE ON USA, GEOGRAPHICAL EXPANSION

Zedcor Inc. has provided the following updates highlighting its expanded fleet of MobileyeZ security towers, U.S. expansion plans, and continued diversification of customer base and industries served.

"After a busy first half of the year, we were able to expand the size of our fleet by over 34 per cent and we continue to meet our strategic objective of diversifying our business, both geographically and with the customers we serve. All supply chain issues have largely been addressed, the company expanded its financing, as previously announced, to ensure we have sufficient capital to complete our 2023 capital plans and we are on track to exit the year with approximately 900 MobileyeZ. We also continue to diversify and add new customers, both geographically and industry-wise."

MobileyeZ fleet update

Zedcor exited 2022 with a fleet of 506 MobileyeZ security towers. During the first half of 2023, the fleet increased by 173 security towers and Zedcor remains on track to exit the year with a fleet of approximately 900 security towers. As of June 30, 2023, Zedcor's fleet consisted of the following types of MobileyeZ security towers:

• Two hundred sixty-four solar hybrid MobileyeZ, which are preferred by customers with large infrastructure projects such as pipelines and roads. These units are entirely self-contained and can be operated anywhere as they are powered by solar with battery backup and diesel charging available when there is not enough sunlight. As one of Zedcor's large pipeline security project winds down, it is able to allocate its solar hybrid fleet across Canada.
• Three hundred ninety-one electric MobileyeZ, which are preferred by construction companies, retail companies and other customers with power available on site. These unique units can plug into any regular power source or an on-site generator.
• Twenty-four diesel and solar MobileyeZ.

All MobileyeZ security towers are equipped with state-of-the-art high-definition cameras, geo-fencing capabilities and advanced artificial intelligence. Video is streamed to the company's centralized monitoring centre in Western Canada where trained operators protect client sites allowing for more efficient and effective security compared with a security guard.

U.S. expansion update

As previously announced, Zedcor will be expanding to the United States in the second half of 2023. This expansion is still on track and subsequent to June 30, 2023, the company has leased a facility. In addition, the company has also hired its first employee in the U.S. and has shipped a small number of security towers for research and development purposes to help ensure supply targets are met for its 2024 expansion program. The company's first goal for the U.S. expansion is to expand and vertically integrate certain portions of its manufacturing process. This will allow Zedcor to be in control of more significant components of the security tower that are currently causing delays, increase the number of MobileyeZ it is able to build in a year and also reduce the cost of its security towers by 15 per cent to 25 per cent. Zedcor's second objective is to start servicing the U.S. market with its security services. The company anticipates to exit the year with approximately 45 solar electric MobileyeZ, which it anticipates will be the preferred unit for this market going forward.

Utilization update

Utilization for the company's electric MobileyeZ remains high and averaged 90 per cent for Q2 2023.

As Zedcor's major pipeline security customer completes construction, utilization for the solar hybrid MobileyeZ has dropped from all-time highs. Once this equipment is returned to the company, it goes through an inspection and retrofit program which increases uptime and reduces future operating costs. Utilization for the solar hybrid MobileyeZ rebounded to above 80 per cent in June, 2023, as Zedcor upgrades this equipment and distributes the returned security towers throughout its network. The company anticipates utilization for the second half of the year for the solar hybrid to be in the range of 80 to 90 per cent and remain above 90 per cent for the electric MobileyeZ.

Diversification of revenues and geographies

Zedcor currently operates service and equipment storage centres across Canada. The attached table provides a breakdown of Zedcor's MobileyeZ fleet by location.

The company also continues to execute on its strategy diversify its customer base and revenue streams. During Q2 2023, Zedcor added over 40 customers to its ever-growing customer base. Currently Zedcor is seeing strong demand for its security services across all market segments and geographies:

• The company provides services to 17 of Canada's top 40 construction companies, including seven of the top 10 based on Construction Link Networks' list of top contractors. At the end of Q2 2022, the company was providing services to only seven of the top 40 construction companies. This represents a year-over-year increase of 143 per cent.
• The company's previously announced pilot with a major home improvement retailer continues to progress well and is moving closer to a contract which, if awarded, will be Zedcor's first major retailer contract award.
• Zedcor has been awarded preliminary security tower work at three major LRT (light rail transit) projects in Edmonton, Toronto and Ottawa and anticipates demand for additional security towers to be utilized on these projects.

About Zedcor Inc.

Zedcor is a Canadian public corporation and is currently the parent company to Zedcor Security Solutions Corp. Zedcor is a technology-enabled business that is changing how physical security services are provided to businesses. Zedcor operates throughout Canada with service centres in British Columbia, Alberta, Manitoba and Ontario.

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