Zedcor Inc. Announces Expanded Fleet of MobileyeZ Security Towers and Provides Update on USA, Geographical Expansion

Calgary, Alberta--(Newsfile Corp. - July 25, 2023) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to provide the following updates highlighting its expanded fleet of MobileyeZ Security Towers, USA 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% 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 we remain 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:

• 264 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 our large pipeline security project winds down, we are able to allocate our Solar Hybrid fleet across Canada.

• 391 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.

• 24 Diesel and Solar MobileyeZ.

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

USA 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 US and has shipped a small number of security towers for research & development purposes to help ensure supply targets are met for its 2024 expansion program. The Company's first goal for the USA expansion is to expand and vertically integrate certain portions of our manufacturing process. This will allow us to be in control of more significant components of the security tower that are currently causing delays, increase the number of MobileyeZ we are able to build in a year, and also reduce the cost of our security towers by 15% - 25%. Our second objective is to start servicing the USA market with our security services. We anticipate to exit the year with approximately 45 Solar Electric MobileyeZ, which we anticipate will be the preferred unit for this market going forward.

Utilization Update

Utilization for the Company's Electric MobileyeZ remains high and averaged 90% 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% in June 2023 as Zedcor upgrades this equipment and distributes the returned security towers throughout its network. We anticipate utilization for the second half of the year for the Solar Hybrid to be in the range of 80 - 90% and remain above 90% for the Electric MobileyeZ.

Diversification of Revenues & Geographies

Zedcor currently operates service and equipment storage centers across Canada. The following 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 7 of the top 10 based on Construction Link Networks list of Top Contractors (source: https://constructionlinks.ca/news/40-largest-construction-companies-in-canada). At the end of Q2 2022, the Company was providing services to only 7 of the top 40 construction companies. This represents a year over year increase of 143%.

• 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 projects in Edmonton, Toronto and Ottawa and anticipates demand for additional security towers to be utilized on these projects.

About Zedcor Inc.

Zedcor Inc. 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 centers in British Columbia, Alberta, Manitoba and Ontario.

The Company operates a fleet of over 600 proprietary MobileyeZ security towers, equipped with high resolution, technology-based cameras, and monitors fixed site locations for customers across various industries. Video from security towers and fixed site locations is streamed to the Company's central monitoring station where video alarms are live verified and responded to based on customer requirements. Zedcor also offers high level security guard services to enterprise level customers who are looking to supplement video-based security for valuable, high risk, or mission critical operational assets.

Forward-Looking Statements and Information

Certain statements included in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information can be identified by terminology such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the expansion of Zedcor's Security and Surveillance business, fleet expansion, marketing of security services and expansion of Zedcor's service offering to other geographic regions. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements or information because the Company can give no assurance that such statements or information will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties, including current forecasts and utilization. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results may differ materially from those anticipated in such statements or information. For this purpose, any statements or information contained herein that are not statements or information of historical fact may be deemed to be forward-looking statements or information and readers should not place undue reliance on such forward-looking statements or information. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless the Company is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

For further information contact:

Todd Ziniuk
President & Chief Executive Officer
P: 403-930-5432
E: tziniuk@zedcor.ca

Amin Ladha
Chief Financial Officer
P: 403-930-5435
E: aladha@zedcor.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/174704