Mr. Steve Smith reports

ZTEST ANNOUNCES RECORD SIX MONTH FINANCIAL RESULTS

Ztest Electronics Inc. has achieved record revenue and net income for the six-month period ended Dec. 31, 2023.

Revenue for the six-month period was $4,339,403, an increase of 88 per cent year over year. Net income for the six months was $676,213, as compared with a loss of $221,992 in the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) for the six months was $940,687, a notable increase from EBITDA of negative $73,323 to Dec. 31, 2022.

This represents the fourth consecutive quarter for which revenues have increased and the company has reported a net profit for the period. These results have allowed the company to continue to add to its capital under management and to further enhance its working capital position by growing current financial assets at a faster pace than current financial liabilities.

The company continually monitors its production capabilities and capacities and determined it to be prudent to acquire additional equipment to augment what is already in use. New machinery has been ordered which is currently being manufactured outside of Canada and is expected to be delivered, installed and fully operational in the final quarter of 2024.

"We believe that the investments we have made provide a solid foundation for sustainable value creation in the years ahead. We are taking actions to position the company to realize the full benefits of our investments going forward. We expect to continue to grow our customer base, expand operating margins, increase EBITDA and improve cash flow generation," said Steve Smith, chief executive officer.

About Ztest Electronics Inc.

Ztest Electronics, through its wholly owned subsidiary, Permatech Electronics Corp., offers electronic manufacturing services (EMS) to a wide range of customers. Permatech's offering includes material management and printed circuit board (PCB) assembly and testing services. Permatech operates from a 20,000-square-foot, ISO 9001:2015 certified facility in North York, Ont., Canada. Permatech is a contract manufacturer of complex circuit boards, serving customers in the medical, power, computer, telecommunications, wireless, industrial, trucking, wearables and consumer electronics markets. It specializes in servicing customers that are looking for high yield and require high quality and rapid turnaround on low-volume and mid-volume production of high-complexity products.

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