Route1 Provides Business Update

Route1 (TSXV:ROI), a leading technology solutions innovator dedicated to delivering secure data protection technologies and mobility solutions for government and enterprise sector issued multiple updates.

The company said that it received a purchase order valued at approximately US$5.9 million pre-tax from an integrated company.

Further, the company announced that its MobiKey technology works with Samsung DeX.

As quoted in the press release:

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.

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