Firan Technology Group Corporation (TSX: FTG) today announced financial results for the first quarter 2020.

Net loss after tax at FTG in Q1 2020 was $2.6M or ($0.11) per diluted share compared to a net profit of $1.2M or $0.05 per diluted share in 2018. Net profit after tax in Q1 2020 was impacted by the lower sales and by the write Press Release 20-007 down of the intangible asset related to the acquisition of the Teledyne PCT business in 2016, due to increased uncertainty in the aerospace and defense market. The Circuits segment net earnings before corporate and interest and other costs was $0.8M in Q1 2020 compared to $2.3M in Q1 2019. The Aerospace net earnings before corporate and interest and other costs in the quarter was ($0.8M) in Q1 2020 (excluding the non-cash intangible asset expense) versus $0.6M in Q1 2019. The drop is due primarily to reduced sales from the simulator related market and the shutdown of Aerospace Tianjin in February due to the COVID-19 pandemic. As at February 28, 2020, the Corporation's net working capital was $25.8M, compared to $28.6M at year-end in 2019. All debt is classified as current as the bank facility agreement currently in place expires in less than 12 months. Activity is underway to obtain a new bank facility in 2020. Net cash at the end of Q1 2020 was $5.2M compared to net cash of $2.2M at the end of 2019.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units: FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia and a joint venture in Tianjin, China. FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as 'anticipate', 'believe', 'expect', 'plan' or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims Press Release 20-007 any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Tel: (416) 299-4000

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