(All amounts in release are in Canadian dollars)

OTTAWA, ON / ACCESSWIRE / February 9, 2022 / Calian Group Ltd. (TSX:CGY), a diverse product and services company providing innovative solutions for the healthcare, communications, learning and security sectors, today released its results for the first quarter ended December 31, 2021.

Calian Group Ltd. (the "Company") reported double-digit revenue growth, expanding margins and strong EBITDA performance for the first quarter of our fiscal year 2022.

First quarter highlights:

• Revenue of $129 million, an 11% increase over Q1 21
• Adjusted EBITDA of $13.9 million, a 34% increase over Q1 21
• Adjusted net profit of $9.7 million, a 41% increase over Q1 21
• Gross margin of 26%, a sustained high for the company
• New contract signings of $185 million

The Company posted strong year over year growth in three segments. Information Technology and Cyber Solutions was up 68%, Learning grew by 26% and Advanced Technologies was up 10%. This growth was supplemented by $185 million in new contract signings which brings our aggregate backlog to $1,340 million. These wins are an indication of the momentum across all our segments, and ability to continue to drive consistent revenue growth.

The Company's Information Technology segment impressive growth of 68% compared to the same quarter of the previous year was driven by gains made in the areas of digital healthcare solutions and cyber security.

Gross Margins for the quarter were 26%, which included all four segments posting gross margins in excess of 25%. This represents a significant increase as average historical gross margin for the last four fiscal years was approximately 22%.

Efforts to diversify the customer base continue. Revenue from European customers represents 14% of the first quarter total, compared to 11% in Q1 21 and 4% in Q1 20. Revenue from commercial customers has increased 13% year over year bringing the split between public and private sector revenue to near 50/50 levels.

"This quarter represents another strong quarter for the Company across many vectors. Our ability to win new deals was evident with strong bookings and delivery. We continue to be well positioned to deliver consistent growth across all our segments." said Kevin Ford, Calian CEO. "Our initiative to deploy capital in a way to drive long term value was also evident with the acquisition of SimFront in October to bolster our learning capabilities, and the announcement of the acquisition of Computex in February which will expand our IT practice into the United States."

Adjusted EBITDA for the first quarter was $13.9 million, an increase of 34% from $10.4 million in the same quarter of the previous year.

Adjusted net profit, which includes non-cash items related to recent acquisitions, was $9.7 million for the quarter, a 41% increase compared to $6.8 million in the same period of the previous year.

Net profit for the first quarter was $4.3 million, representing a 73% increase from the $2.4 million in the same period of the previous year.

"This quarter, we saw strong revenue growth and continued expansion of EBITDA at a pace greater than our revenue growth." said Patrick Houston, Calian CFO. "This has been a result of our concerted efforts to increase gross margins and seek opportunities to scale as we cross the half billion mark."

"At this time we reiterate the guidance we provided to markets in late November for our FY22 fiscal year" said Kevin Ford. "This guidance represents another record year for the Company and its 5 ^th consecutive year of profitable double-digit growth. We will update our estimates with regards to the acquisition of Computex when that transaction closes in our second fiscal quarter."

Join us at 10:30 am EST on February 16 ^th for Calian's Virtual Investor Event where you will have the opportunity to learn about the exciting developments across all four of our segments. Register at the following URL: https://www.calian.com/events/calian-investor-event-2022/

About Calian
www.calian.com
We keep the world moving forward. Calian® helps people communicate, innovate, learn, stay safe and lead healthy lives with confidence. Every day, our 4,500 employees live our values of customer-centricity, integrity, innovation and teamwork to engineer reliable solutions that solve complex problems. That's Confidence. Engineered. A stable and growing 40-year young company, we are headquartered in Ottawa with offices and projects spanning North American and international markets. Visit calian.com to learn about the diverse products, services and solutions we offer to healthcare, communications, learning and security sectors.

Product or service names mentioned herein may be the trademarks of their respective owners.

Media inquiries:
info@calian.com
613-599-8600 x 2298

Investor Relations inquiries:
ir@calian.com

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DISCLAIMER
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company's most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at December 31, 2021 and September 30, 2021
(Canadian dollars in thousands, except per share data)

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT
For the three-months ended December 31, 2021 and 2020
(Canadian dollars in thousands, except per share data)

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-months ended December 31, 2021 and 2020
(Canadian dollars in thousands)

Reconciliation of non-GAAP measures to most comparable IFRS measures
These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company's performance.

Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures,

provides users of the Company's financial reports with enhanced understanding of the Company's results and

related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company's core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.

Adjusted EBITDA

Adjusted Net Profit and Adjusted EPS

The Company uses adjusted net profit and adjusted earnings per share, which remove the impact of our acquisition amortization and gains, resulting in accounting for acquisitions and changes in fair value to measure our performance. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Adjusted profit and adjusted earnings per share are not recognized, defined or standardized measures under the International Financial Reporting Standards. Our definition of adjusted profit and adjusted earnings per share will likely differ from that used by other companies (including our peers) and therefore comparability may be limited. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with International Financial Reporting Standards. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable International Financial Reporting Standards financial measures. The Company has reconciled adjusted profit to the most comparable International Financial Reporting Standards financial measure as shown above.

SOURCE: Calian Group Ltd.