During the first quarter of 2020 HansaMatrix unaudited consolidated revenue decreased by 12% compared to the first quarter of 2019 and reached 5.184 million EUR volume; reported EBITDA result was 60% lower, and reached 0.441 million EUR, net loss amounted to 0.435 million EUR. In the reporting period quarterly EBITDA margin of 8.51% was achieved.

During the first quarter of 2020 the Company reported quarterly revenue (turnover or sales) of 5.184 million EUR –decrease by 12% in comparison to the same period of 2019. The first quarter of 2020 sales results showed 11% sales volume decrease in comparison with previous quarter – 2019 Q4.

During 2020 Q1 the Company reported quarterly EBITDA result of 0.441 million EUR and quarterly net loss of 0.435 million EUR. The reported EBITDA result showed 60% decrease in comparison with Q1 2019 and 21% decrease compared to previous quarter of 2019 Q4. The Company reported net loss in Q1 2020 while in Q1 2019 and Q4 2019 the company operated with net profit of 0.201 and 0.081 million EUR respectively. Results represent quarterly EBITDA margin of 8.51%.

Sales result, EBITDA margin and net profit margin result in 2020 Q1 was influenced by COVID-19 global spread impacting and creating challenges in such business environment factors as personnel safety issues, supply chain disruptions, and transportation network disruptions. COVID-19 has influenced the Company performance already starting with the second half of January, 2020 when the virus gained momentum in China and Asia creating significant disruptions in the Company supply chain from this region.

In addition, net profit margin exhibits decreasing trend, explained by the increased capital equipment depreciation due to recent sizeable investments, interest payments, where payment provisions for European Investment Bank financing is included and explained by the increased share of losses included in the consolidated financial statements from the associate companies due to increased ownership.

2020 Q1 R&D turnover increased by 8% compared with 2019 Q1 R&D turnover and decreased by 41% compared to the previous quarter Q4 2019 turnover, and is accounting for 8.9% share of Company’s consolidated sales in 2020 Q1. R&D grant income has not been included in reported R&D sales figures.

In Q1 2020 the Company continued to manufacture the high-tech optical devices and to work on R&D projects.

Trailing Twelve Months (TTM) - 12 month period sales (period starting in April 1, 2019 and ending with March 31, 2020) at 2020 Q1 reached 23.125 million EUR, showing 3% decrease compared to TTM sales for the period ended at 2019 Q4. EBITDA result for the TTM 12 month period reported to be 2.899 million EUR, a decrease of 19% in comparison with 12 month period ended at 2019 Q4. The TTM period resulted in a net loss of 0.437 million EUR. Averaged EBITDA margin for TTM period is reported 12.5%.

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 29 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.

Attachments:

• HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 3 Month Period Ended March 31, 2020

Investor and media contact:

Māris Macijevskis, CFA Management Board Member, Finance director Phone: (+371) 6780 0002 E-mail: invest@hansamatrix.com

http://www.hansamatrix.com

About HansaMatrix”

HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments and other services to high added value business segments. In addition to complete manufacturing services of OEM products, the company offers an ODM business model to both start-up and established companies that seek product development partnerships.