• Substantial advancements expected in 2023 for grid-tied and multi-level inverters, Enhanced Powertrain Solution
• Commitments for commercial revenues expected by the end of the year
• Growth across multiple sectors is accelerating and is expected to provide Hillcrest with expanded market opportunities

Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF), a clean technology company developing transformative power conversion technologies and control system solutions for next-generation electrical systems, is pleased to provide an update on the company's anticipated development and commercialization targets for 2023.

Hillcrest starts 2023 in a strong position established by last month's completion of the company's first commercial prototype, an 800-volt, 250-kilowatt traction inverter for the EV market.  This prototype validates the company's zero voltage switching (ZVS) inverter technology and serves as the foundation upon which the company can now accelerate the pace of its building-block approach to product development. With the groundwork now complete, the company expects to deliver substantial advancements on several new applications in the coming year.

Anticipated technology development milestones for 2023 include:

• Completion of proof-of-concept testing for a grid-tied inverter;
• Proof-of-concept testing for an Enhanced Powertrain Solution; and
• Proof-of-concept testing for a novel multi-level inverter technology.

Continued engagement with potential customers across multiple sectors will ensure all technologies and products continue to rely upon Hillcrest's customer-centric development process to address the needs and resolve the specific pain points identified by each partner and customer.

"2023 marks a transitional year in our story, with the focus shifting to the application of our core ZVS inverter technology into new products and end uses. We are expanding our focus to include grid-tied applications while maintaining and growing relationships in the automotive sector," said Hillcrest CEO Don Currie. "Our near-term objective is to engage up to two additional EV customers and ramp up new customer agreements for our grid-tied renewable energy generation and Energy Storage System (ESS) segments. Combined, we believe these development and commercialization activities will position us well to secure commitments for commercial revenues by the end of the year."

In 2023, Hillcrest expects to see substantial growth and maturation in its diversified intellectual property (IP) portfolio. The company's technical team possesses decades of experience that translates directly into capabilities and know-how beyond most companies at a similar stage. Combined with its proprietary firmware and patent portfolio, consisting of four hardware patent applications, Hillcrest has established a robust IP foundation that will continue to expand over the coming year. The company expects its growing IP portfolio to have a noticeable impact on perceived market value and its maturing business strategy.

"Our ZVS inverter technology is setting a new standard of expected performance and efficiency for the next era of power conversion technologies," said Hillcrest CTO Ari Berger. "We believe the industry-leading advancements we've achieved with our core ZVS inverter technology can provide significant, cost-effective efficiency and performance improvements for the rapidly expanding markets for zero-emission vehicles and renewable energy generation and storage systems."

Hillcrest's focus on both the zero-emission vehicle and renewable energy markets allows the company to de-risk and diversify its revenue streams and potentially accelerate the path to commercial revenues. Recent projections suggest the global zero-emission vehicle inverter market will reach US$ 11.5 billion by 2027 (23% CAGR) with the total global inverter market expected to reach US$95B by 2028 (5% CAGR). The latest market reports suggest even stronger growth than previously anticipated:

• A recent BloombergNEF report suggests market penetration and growth for zero-emissions vehicles is moving faster than previously expected. With zero-emission vehicles now expected to make up 42% of the 2040 global fleet and more governments at the state, local, and federal levels committing to rapid and large-scale adoption of electric vehicles, Hillcrest's market opportunity continues to increase alongside this demand.
• The latest IEA global renewable energy capacity projections have been revised upward by nearly 30%. Renewables are now expected to become the largest global source of electricity by 2025.

"From EV to grid, IP progress to customer engagements, Hillcrest is looking forward to a promising 2023," said CEO Currie. "The incredible efforts of our world-class technical team will continue to build momentum and bring meaningful contributions to lowering global emissions in the market segments that matter most."

Hillcrest Energy Technologies is a clean technology company developing high-value, high-performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol "HEAT," on the OTCQB Venture Market as "HLRTF". For more information, please visit: https://hillcrestenergy.tech/.

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