Mr. Andrew Cheung reports

01 COMMUNIQUE PROVIDES UPDATE ON BUSINESS DEVELOPMENTS AND FIRST QUARTER FISCAL 2024 RESULTS

01 Communique Laboratory Inc. has released its first quarter fiscal 2024 results, which ended Jan. 31, 2024.

Andrew Cheung, chief executive officer of the company, commented: "Entering 2024, we are witnessing significant increased attention in quantum-safety in many technological fields, including AI [artificial intelligence] and cryptocurrencies. We believe 2024 is going to be a pivotal year. Just to name a few examples, in February, Apple announced their quantum-safe version of iMessage which is being offered in the latest iOS 17.4. This was a wakeup call to all nay-sayers. Later, in March, quantum-safety also caught the attention of the founder of ethereum. This triggered discussion in the ethereum community on how to protect the cryptocurrency against quantum computers. Our postquantum cryptography (PQC), which is incorporated in IronCAP, does just that. It was designed to help the quantum-safe journey of everyone in the world."

Mr. Cheung continued: "The major part of our development is behind us. We have completed a number of very practical PQC applications, allowing us the ability to showcase our technology and assist our partners in providing enhanced security against bad actors using quantum computers. Throughout 2024 our plan is to continue working with our existing partners as well as engage new partners to increase awareness in IronCAP and generate revenue. With the major part of development complete, we have been able to reduce our operating expenses with a goal to keep them in line with the level of ongoing recurring revenue."

Financial highlights:

• The loss for the quarter was $112,281 (2023 -- $247,508). The adjusted loss, excluding stock-based compensation and depreciation, which are non-cash expenses, was $56,145 (2023 -- $185,895), a reduction of $129,750. The company completed the quarter with $219,464 of cash and a GIC (guaranteed investment certificate).
• Cash operating expenses, which exclude stock-based compensation and depreciation, for the quarter were $147,725 (2023 -- $285,295) a reduction of $137,570.
• Product development expenses decreased by $95,936. A number of development projects were completed in fiscal 2023 allowing the company to reduce development expenses. The company makes use of third party independent contractors for the majority of its product development.
• SG&A (selling, general and administrative) expenses, net of stock-based compensation, decreased by $41,687. Continuing cash operating expenses have been significantly reduced. The goal is to keep them in line with the level of continuing recurring revenue.
• Revenue for the quarter was $98,470 (2023 -- $106,803), a decrease of $8,333. Revenue was negatively impacted by a weakening of the Japanese yen to the Canadian dollar.

Conference call reminder and information

01 Communique will host a live teleconference allowing for questions and answers later today at 10 a.m. Eastern Time (March 21, 2024) to discuss the company's results as well as providing an update on the business prospects for IronCAP and IronCAP X.

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Within the United States:  646-558-8656 or 669-900-9128

Webinar ID when prompted is 832 7263 0612.

Passcode:  046969719

About 01 Communique Laboratory Inc.

Established in 1992, 01 Communique has always been at the forefront of technology. The company's cybersecurity business unit focuses on postquantum cybersecurity with the development of its IronCAP product line. IronCAP's technologies are patent protected in the U.S. by its patents No. 11,271,715 and No. 11,669,833. The company's remote access business unit provides its customers with a suite of secure remote access services and products under its I'm InTouch and I'm OnCall product offerings. The remote access offerings are protected in the U.S. by its patents No. 6,928,479/No. 6,938,076/No. 8,234,701; in Canada by its patents No. 2,309,398/No. 2,524,039; and in Japan by its patent No. 4,875,094.

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