Dr. Essam Hamza reports

CLOUDMD ANNOUNCES COST OPTIMIZATION AND OPERATIONAL INTEGRATION ACTIVITIES

CloudMD Software & Services Inc. has provided an update on its cost optimization process, integration of its comprehensive health services platform and organizational structure.

CloudMD's cost optimization team is dedicated to creating shareholder and client value through the integration of people, process and technology across the entire organization. Since the start of the year, approximately $7.5-million of annualized run-rate costs have been eliminated from the organization through integration, cost synergies and streamlining operational functions across the entire business. The full benefit of these cost savings is expected to be realized in the second quarter. This exceeds the expected $4-million in cost savings the company previously disclosed.

"We are pleased with our ability to accelerate the identification and elimination of $7.5-million of run-rate costs which we have already been taken out of the business since the beginning of the year. In addition, we have used this opportunity to re-evaluate the organizational structure and streamline our business operations to prioritize exemplary service for our customers. This will result in our customers realizing increased return on investment and return on employee satisfaction," commented John Plunkett, executive vice-president, transformation and strategic planning, at CloudMD.

CloudMD has demonstrated its ability to execute on its cost optimization strategy to drive sustainable profitability by:

• Integrating MindBeacon's iCBT solution into CloudMD's mental health support solutions, providing user engagement through assessment and treatment options for mild, moderate and chronic conditions;
• Streamlining and consolidating key operational functions across finance, IT, human resources, marketing and sales, and leveraging industry-leading talent to drive innovation and retention, and capitalize on human capital;
• Strengthening digital health solutions by creating a new product management team focused on innovation and continuing to meet the health needs of individuals.

The company believes there are additional efficiencies to be realized as it continues its integration efforts this year. In addition, CloudMD is also focused on cross-sell revenue synergies through its complete and connected health ecosystem, which will support continued strong top-line growth.

As part of the cost optimization, CloudMD has made some changes to its organizational structure to streamline the operations and create a more efficient business. Several positions have been reorganized and/or consolidated to leverage important capabilities, share best practices and drive growth throughout the organization. As part of the reorganization, effective March 31, 2022, Kanchan Thindal has stepped down as the company's chief operating officer (COO). Karen Adams, president, will assume the roles and responsibilities of COO for the company. CloudMD would like to thank Ms. Thindal for her dedication and support over the past four years through the company's significant growth.

Through the organizational restructure, CloudMD has made several changes to consolidate and strengthen the depth of its leadership team, including appointing Lu Barbuto, executive vice-president of enterprise health solutions; Adam Kelly, chief commercial officer; Aida Begovic, executive vice-president of digital health solutions; John Plunkett, executive vice-president of transformation and strategic planning; Jon Harju, senior vice-president, engineering; Bronwyn Ott, senior vice-president, human resources; and Olga McRae, corporate secretary. CloudMD has also introduced a process to continually review and evaluate its operational integration, and additional changes may be implemented as indicated by such process.

No changes have been made to CloudMD's current business units, clinics and pharmacies, digital health solutions, and enterprise health solutions.

"Execution of our strategy is dependent on diligent cost management throughout the year. We are focusing on higher productivity and sustainable cost-effectiveness to position us for increased profit and scalability," stated Ms. Adams, president of CloudMD. "The focus is on delivering the product vision, while ensuring we have the operating model and capabilities to deliver profitable growth. The actions we are announcing today, and the processes we have introduced, will better align our organization and cost structure to achieve these objectives. We will continue driving revenue and margin expansion by adding capabilities to our patented integrated health care platform, cross-selling our capabilities portfolio, and bringing new, innovative health care solutions to the market."

About CloudMD Software & Services Inc.

CloudMD is transforming the delivery of health care using technology and by providing a patient-centric approach, with an emphasis on continuity of care. By leveraging health care technology, the company is building one connected platform that addresses all points of a patient's health care journey and provides better access to care and improved outcomes. Through CloudMD's proprietary technology, the company delivers quality health care through a holistic offering, including hybrid primary care clinics, specialist care, telemedicine, mental health support, health care navigation, educational resources and artificial intelligence. CloudMD's Enterprise Health Solutions division has built a leading employer health care solution, including its comprehensive integrated health services platform, which offers one comprehensive, digitally connected platform for educational institutions, corporations, insurers and advisers to better manage the health and wellness of their students, employees and customers.

CloudMD currently services a combined ecosystem of over 7,000 psychiatrists, approximately 4,500 therapists and counsellors, approximately 4,000 psychologists, over 22,000 family physicians, over 34,000 medical specialists, over 1,500 allied health professionals, over 500 clinics, and over five million individuals across North America.

We seek Safe Harbor.