Route1 Reports 2016 Third Quarter Financial Results

Route1 Reports 2016 Third Quarter Financial Results.

Company Posts its Eleventh Consecutive Quarter of Growth in
Services Revenue and MobiKEY Subscribers.

Toronto, November 22, 2016 – Route1 Inc. (TSXV: ROI) (the Company or Route1), a world-leader in secure data protection technologies and user authentication for government and enterprise, today announced its third quarter (Q3) and year to date (YTD) financial results for the period ended September 30, 2016.

During the third quarter of 2016, Route1 realized growth in revenue from MobiKEY application software subscribers (recurring revenue).  Revenue from Services includes MobiKEY application software, the MobiNET (DEFIMNET) platform and other appliance licensing or yearly maintenance.

During the third quarter of 2016, Route1 realized growth in revenue from MobiKEY application software subscribers (recurring revenue).  Revenue from Services includes MobiKEY application software, the MobiNET (DEFIMNET) platform and other appliance licensing or yearly maintenance.

Route1 used cash in operating activities of approximately $0.7 million during Q3 2016 compared with cash used of $0.9 million in Q3 2015.  As at September 30, 2016, the Company had no bank debt and a cash balance of $2.9 million.

Route1’s cash position is at its highest level during the second quarter of the fiscal year as a direct result of the timing of annual enterprise user subscription renewal payments.

Share Repurchase Program

On September 16, 2016, the Company announced with approval from the TSX Venture Exchange its intention to make another NCIB. The NCIB permits the Company to purchase for cancellation up to 5% of the common shares in the public float. The maximum number of shares allowed for repurchase is 17,563,870. Purchases under the NCIB may occur during the 12 month period commencing September 27, 2016 and ending September 26, 2017, or the date upon which the maximum number of common shares have been purchased by the Company.

For the nine months ended September 30, 2016, the Company in aggregate repurchased for cancellation 11,582,000 of its common shares for a consideration of $543,710, at an approximate average price of $0.047 per share under the NCIB. For the nine months ended September 30, 2015, the Company repurchased for cancellation 7,691,500 of its common shares for a consideration of $361,927 at an average price of $0.047 per share under the NCIB.

Business and Product Development Highlights

Route1 provided a Q3 2016 Operations Update via an investor presentation and conference call on October 18, 2016.  The investor presentation was filed on SEDAR at www.sedar.ca and is also available on Route1’s website at www.route1.com/investors/company-presentations.html.

About Route1 Inc.
Route1 Inc. is a world-leader in secure data protection technologies and user authentication for government and enterprise.  Route1 solutions enable the workforce to be more productive and more flexible without compromising system access, data-at-rest, or data-in-use.  The Company’s suite of patented enterprise security solutions combines best-in-class authentication, data security and secure communications with streamlined administration tools, running on a proven, trusted infrastructure.  From mobile access to business continuity to best-in-class full system encryption, Route1 offers the most effective, affordable methods to secure the digital fortress, while meeting or exceeding the highest standards for government and industry.  Route1 has Full Authority to Operate from the U.S. Department of Defense, the U.S. Department of the Navy, the U.S. Department of Homeland Security, the U.S. Department of the Interior, and other government agencies.  The Company is also trusted by enterprise security teams in the banking, healthcare, legal and education sectors, among others. With offices in Washington, D.C., Boca Raton, FL and Toronto, Canada, Route1 serves public and private sector clients around the world.  Route1 is listed on the TSX Venture Exchange under the ticker symbol TSXV: ROI.

For more information, visit our website at: www.route1.com.

For More Information Contact:
Tony Busseri, CEO
+1 416 814-2635
tony.busseri@route1.com
Skype: Route1CEO
Twitter: @Route1CEO
Facebook: Route1 Inc.

Peter Chodos, EVP and CFO
+1 416 814-2619
 peter.chodos@route1.com

Jay Morakis, M Group Strategic Communications
+1 212 266-0191
 jmorakis@mgroupsc.com

This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the 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.

© 2016 Route1 Inc. All rights reserved.  Route1 Inc. is the owner of, or licensed user of, all copyright in this document, including all photographs, product descriptions, designs and images. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. Route1, Route 1, the Route1 and shield design Logo, MobiDESK, Mobi, Route1 MobiVDI, Route1 MobiDESK, Route1 MobiBOOK, Route1 MobiKEY, Route1 MobiNET, IBAD, MobiVDI, MobiNET, DEFIMNET, Powered by MobiNET, Route1 Mobi, Route1 MobiLINK, TruOFFICE, MobiLINK, EnterpriseLIVE, PurLINK, TruCOMMAND, MobiMICRO and MobiKEY are either registered trademarks or trademarks of Route1 Inc. in the United States and/or Canada. All other trademarks and trade names are the property of their respective owners.

The DEFIMNET and MobiNET platforms, the MobiKEY, MobiKEY Classic, MobiKEY Classic 2, MobiKEY Classic 3, MobiKEY Fusion, MobiKEY Fusion2, and MobiKEY Fusion3 devices, and MobiLINK are protected by U.S. Patents 7,814,216, 7,739,726, 9,059,962, 9,059,997 and 9,319,385, Canadian Patent 2,578,053, and other patents pending. The MobiKEY Classic 2 and MobiKEY Classic 3 devices are also protected by U.S. Patents 6,748,541 and 6,763,399, and European Patent 1001329 of Aladdin Knowledge Systems Ltd. and used under license. Other patents are registered or pending in various countries around the world.

Other product and company names mentioned herein may be trademarks of their respective companies.