Mr. James Lee reports

HEALWELL PROVIDES CORPORATE UPDATE INCLUDING IMPROVED PERFORMANCE IN AI BUSINESS, ACQUISITION OF REMAINING INTEREST IN PENTAVERE AND DEEPER INTEGRATION WITHIN THE AI BUSINESS SEGMENT

Healwell AI Inc. has provided a corporate update, including improved performance in its AI (artificial intelligence) business units, the acquisition of the remaining interest in Pentavere Research Group Inc. and deeper integration of the entities within its AI business segment.

The company's AI business segment, encompassing the Pentavere, Khure Health and Mutuo Health Solutions businesses, is on track to exceed $5-million in revenues for the first six months of 2025, ending June 30, 2025, representing a year-over-year increase of over 200 per cent. This strong performance is expected to lead to positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the AI business segment during the same period.

Strategic acquisition and performance highlights:

• Full ownership of Pentavere: Healwell has exercised its call option to acquire the remaining 49 per cent of Pentavere, gaining full ownership of the globally recognized AI health care company. Pentavere is the developer of Darwen, a leading AI-driven patient identification platform crucial for preventive care.
• Robust organic growth: Preliminary results for Q2 2025 show significant organic revenue growth within the AI segment, with both Pentavere and Khure each increasing by more than 100 per cent during the first six months of 2025 compared with the same period last year. This demonstrates the company's enhanced connectivity with the life sciences marketplace.

New leadership and forward strategy

James Lee, Healwell's new chief executive officer, effective July 1, 2025, commented: "I'm incredibly pleased with the strong performance of our core AI division, and I believe its potential is substantial. With Orion Health now part of our family and 100-per-cent ownership of Pentavere, we have a unique opportunity to truly differentiate our offering and accelerate the commercialization of our AI products. We are already seeing strong interest in our various AI products from some of the largest health care systems in the world."

Healwell's strategy is to deeply integrate its AI and data science products into its software platforms. This approach provides a direct path to market, leveraging existing customer bases and contracts to enable health care systems worldwide to adopt AI solutions more readily.

Hamed Shahbazi, Healwell's chairman, emphasized the significance of Pentavere: "Darwen is a globally unique and recognized AI solution, validated by some of the largest and most complex health care systems. Its focus on ethical and compliant training with permissioned data, alongside clinical validation in over 40 publications, positions it to lead the health care sector in deploying AI insights for real-world outcomes. We also continue to be greatly impressed with both the capability and thought leadership of the Pentavere team and are excited to watch them continue their efforts to modernize and AI-enable preventative health."

Commitment to preventive care

Mr. Lee further commented on the urgent need for AI in health care: "Global health care systems face relentless demands amid budgetary and staffing challenges. AI-based tools like Pentavere's Darwen are breaking new frontiers in patient identification and preventative care, holding the potential to save and protect many lives. Our role is to be an enabler of preventative care, and we must act with urgency. We are committed to delivering on our vision, and, along with the company's president, Dr. Alexander Dobranowski, I look forward to sharing key milestones as we achieve them."

Transaction details of Pentavere call option exercise

Healwell has acquired the remaining 49 per cent of Pentavere that it did not already own by exercising a call option that it had previously negotiated at the time of its original acquisition of a majority interest in Pentavere in 2023. Pursuant to the call option, Healwell has acquired all of the remaining issued and outstanding shares of Pentavere for an aggregate purchase price of $13,978,244.70, which was satisfied with the issuance of 10,161,562 subordinate voting shares at a deemed price of $1.3756 per share, equal to the five-day VWAP (volume-weighted average price) on July 11, 2025.

About Healwell AI Inc.

Healwell is a health care artificial intelligence company focused on preventive care. Its mission is to improve health care and save lives through early identification and detection of disease. Using its own proprietary technology, the company is developing and commercializing advanced clinical decision support systems that can help health care providers detect rare and chronic diseases, improve efficiency of their practice, and ultimately help improve patient health outcomes. Healwell is executing a strategy centred on developing and acquiring technology and clinical sciences capabilities that complement the company's road map. Healwell is publicly traded on the Toronto Stock Exchange under the symbol AIDX and on the OTC (over-the-counter) exchange under the symbol HWAIF.

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