Ms. Kristine Lewis reports

NTG CLARITY NETWORKS ANNOUNCES THIRD QUARTER 2019 FINANCIAL RESULTS

NTG Clarity Networks Inc. has released its revenue figures for the third quarter of 2019.

This quarter, management's efforts were focused on working with the bank and attending to the cash flow shortfall, which significantly affected operations. A continued effort was made to avoid a negative outcome with regard to the credit facilities, which are secured by a general security agreement over the assets of the corporation.

Despite management's efforts to avert bank action, the company received a formal demand on Sept. 16, 2019, to fully retire its bank indebtedness within 10 days. This was announced by the corporation on Sept. 17, 2019. The corporation is currently continuing discussions with the bank to try to resolve this issue.

          INCOME STATEMENT HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPT. 30, 2019, AND 2018

                                                Three months ended                     Nine months ended   
                                         Sept. 30, 2019     Sept. 30, 2018     Sept. 30, 2019     Sept. 30, 2018

Revenue                                        $575,594         $3,501,906         $6,227,237        $10,158,805
Cost of sales                                 1,393,617          1,766,218          4,486,129          5,643,653
                                           ============       ============       ============       ============
Gross profit                                   (818,024)         1,735,689          1,741,107          4,515,152
                                           ============       ============       ============       ============
Expenses                                      2,007,932          1,435,622          4,499,320          4,114,721
Foreign exchange loss (gain)                     33,913            229,727            212,887             47,936
Exchange loss (gain) on translation             (28,516)            63,785           (155,296)           169,090
Provision for bad debt                        2,379,114                  -          2,379,114                  -
                                           ------------       ------------       ------------       ------------
Total net income (loss)                      (5,210,467)             6,555         (5,194,917)           183,406
                                           ============       ============       ============       ============
Per share                                         (0.09)              0.00              (0.09)              0.00

The major factors contributing to the negative quarter include:

• Management attention was focused on the bank issue;
• Severe cash flow made it very difficult to finance projects and current activities;
• Large provision for bad debt;
• Ending/cancellation of some projects.

There is significant uncertainty as to whether the company can continue as a going concern if it cannot secure additional financing.

Subsequent to quarter-end, the following occurred:

• On Oct. 7, 2019, the corporation announced the resignation of its two independent board members.
• On Oct. 8, 2019, IIROC (Investment Industry Regulatory Organization of Canada) halted trading for the corporation citing the reason as pending corporation contact.
• On Oct. 9, 2019, the bank obtained a court order placing the corporation under interim receivership. Management has been in discussions with the bank with a view to avoiding full receivership of the corporation.

Subsequent to period-end, as of Nov. 1, 2019, the corporation did not renew its insurance with Euler Hermes Canada due to cash flow and the current situation with the bank.

About NTG Clarity Networks Inc.

NTG Clarity Networks' vision is to be a global leader in providing networking solutions. As a Canadian company established in 1992, NTG Clarity has delivered networking, information technology and network-enabled application software solutions to network service providers and large enterprises. More than 250 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.

We seek Safe Harbor.