Route1 Provides Business Update

Toronto, July 12, 2018 – Route1 Inc. (OTCQB: ROIUF and TSXV: ROI) (the “Company” or “Route1”), a leading technology solutions innovator dedicated to delivering secure data protection technologies and mobility solutions for government and the enterprise sector, provided today a business update.

Contract Award

Route1 through its wholly owned subsidiary Group Mobile Int’l, LLC recently received a purchase order valued at approximately US $5.9 million pre-tax from an integrated energy company engaged primarily in electric power production and retail distribution operations in the southern United States to provide the client with ruggedized devices.  Route1 expects the delivery of the hardware for this order to occur in the third quarter of 2018.

This order demonstrates the positive outcome of our initiative to focus on and improve our hardware vendor relations.  We believe that we are poised to increase our sales from hardware vendor generated leads.  Although hardware vendor originated sales leads normally have lower margins than Group Mobile’s recent aggregate experience of 16-22%, Route1 is working with its hardware vendors to increase margins with expanded service and application software offerings.

MobiKEY Partnerships

On July 5, 2018 Route1 announced that the MobiKEY technology now works with Samsung DeX.  Military personnel are required to work wherever their mission takes them – on base, at home, or deployed in the field. With products like Samsung DeX, which transforms mobile productivity, users can easily connect their latest Samsung Galaxy smartphone to a monitor, keyboard and mouse for a convenient PC-like experience. And, when combined with Route1’s MobiKEY solution, personnel gain secure remote access to DoD networks, desktops and files through a CAC-authenticated session.

Additionally, earlier this week Thursby Software Systems, Inc. (“Thursby”) announced the partnership of the Thursby PKard Reader with Route1’s MobiKEY software application. Current Thursby DoD and government customers can now add the MobiKEY software application, utilize their PKard Reader to authenticate themselves by using their Department of Defense issued Common Access Cards, federally issued Personal Identification Verification cards, or commercially issued PIV-I cards, and be able to remotely access their local desktop, on any mobile device, with the highest levels of security and encryption.

AirWatch Lawsuit update

The claim construction hearing (the “Markman Hearing”) was held on July 2, 2018 in Wilmington, Delaware presided over by the Honorable Richard G. Andrews in relation to civil action number 1:17-cv-00331-RGA.  We expect the Judge’s decision on the construction of the claim terms no later than August 31, 2018.

Important upcoming dates in this litigation can be found at https://www.route1.com/investors/patent-litigation/.

Route1 filed a complaint against AirWatch in federal court in Delaware on March 27, 2017, alleging that AirWatch is infringing Route1’s U.S. Patent No 7,814,216.

Organization Changes

Brian Brunetti, President will be leaving Route1 on July 27, 2018 to pursue a new career opportunity in the environmental services sector.  Brian has been a valuable contributor to Route1 since he first joined the Company in the summer of 2010.

Route1 will bring in Bob Hooper as Chief Sales and Marketing Officer (CSMO). Bob is the President of HTM Sensors and will provide Route1 with his services on a part time basis.  Bob has been instrumental in bringing ActionPLAN Powered by MobiNET to market.

In addition, Route1 expects to hire by month’s end a VP of Engineering to provide deeper overall management depth to better fit Route1’s leadership requirements.

Building a Stronger Route1

Fifteen months ago, Route1 started its business pivot to becoming a stronger more profitable company by looking to grow our product offering through leveraging our core competencies, and actualizing on the value of our intellectual property.

Today, we are aggressively positioning the Company to be a leader in empowering organizations with data-centric solutions and insights necessary to streamline operations, minimize costs and gain competitive advantages while maintaining the high level of cyber security posture.

Over the course of the summer we will be sharing more information on how we plan to evolve as a company.  We expect to announce our Q2 2018 financial results and hold a shareholder webcast and conference call on or about August 17, 2018.

Route1 Inc.
Route1 Inc. is a leading technology solutions innovator dedicated to enabling mobility for government and focused enterprise vertical markets by delivering secure data protection technologies and mobility solutions. The Company’s suite of patented enterprise security solutions, which includes MobiKEY, ActionPLAN, powered by MobiNET, MobiENCRYPT and DerivID, delivers best-in-class authentication, data security, data analytics and secure remote access, running on a proven, trusted infrastructure, which meets or exceeds the highest security standards for government and industry. Route1 has earned a Full Authority to Operate from the U.S. Department of Defense, the U.S. Department of the Navy, the U.S. Department of the Interior, and other government agencies.  The Company is proud to be a trusted solutions partner in the banking, healthcare, legal, education, public sector, manufacturing, logistics, field service and warehousing industries.

Through Route1’s wholly owned subsidiary, Group Mobile Int’l, LLC, the Company is a trendsetter in the enterprise technology space by providing expertise in building mobility solutions and deploying complete offerings into vertical markets through specialized hardware, software and our expanding services capabilities.  Route1 is a pioneer in IIoT (Industrial Internet of Things) through the delivery of our ActionPLAN, powered by MobiNET technology, which not only captures data from electrical inputs including sensor data but takes it to the next level by interpreting, analyzing, transforming the data to deliver strategic business intelligence.

The diverse but complimentary technologies our Company provides, along with the level of experience and expertise of our team, uniquely positions us as the pre-emptive leader in secure and complete mobile technology solutions.  Route1 remains focused and dedicated to serving the needs of our business partners; to positively influence their profitability, contribute to their longevity and share in their success.  With offices and staff in Washington, D.C., Boca Raton, FL, Phoenix AZ, Chattanooga TN and Toronto, Canada, Route1 provides leading-edge solutions to public and private sector clients around the world.  Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI.  For more information, visit: www.route1.com.

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

© 2018 Route1 Inc. All rights reserved. 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.  See https://www.route1.com/terms-of-use/ for notice of Route1’s intellectual property.