HS GovTech Solutions Inc. announced that it has been selected for and agreed to a contract with the Commonwealth of Kentucky Cabinet for Health and Family Services (the "State", or "Kentucky"). The resulting contract will allow Kentucky to deploy HSCloud Suite(TM) for data management across numerous regulatory areas and use cases for their environmental health, along with usage of HSPay(TM) and GovCall(TM) . All financial figures contained herein are expressed in U.S. dollars ("USD") unless otherwise noted.

Awarded Contract Highlights Total Contract Value ("TCV") is $9,393,587 over eight years. Annual Rerring Revenue (ARR) will be $1$1,074,073 per year, not inclusive of HSPay revenue. Professional Services and implementation fees are $801,000.

HSPay will be the processor of all online electronic payments. State will initially use 100 concurrent seats for GovCall with the option to add additional seats as needed. This contract is the result of a lengthy procurement process, including a Request for Prosal ("RFP") issued d by the State to which the Company submitted a formal proposal for in February of this year.

The State reviewed multiple products from various companies who participated in the RFP process and deemed HSCloud Suite(TM) to be the most robust solution available for data management. The State began negotiations with, and awarded to, HS GovTech in June. The contract is expected to be countersigned by the State this month, and the implementation is set to begin no later than October 1st.

ARR Growth As at June 30, 2022, the Company's ARR stood at $4.82 million. Once this contract is countersigned, combined with additional contract executions since June 30th, the Company's ARR will stand at $6.00 million. This represents an increase in ARR of $1.18 million since the start of Third Quarter 2022 - a 24% increase this quarter alone.

Based on the status of several late stage deals in the pipeline, the Company anticipates continued momentum in Fourth Quarter and a strong close to the year.