Vancouver, British Columbia--(Newsfile Corp. - December 3, 2024) - Legend Power Systems (TSXV: LPS), is excited to provide a detailed update on our extraordinary progress. This year has been transformative for Legend Power Systems, with tangible wins across five strategic pillars that form the backbone of our growth strategy. Each of these pillars represents a standalone opportunity to drive significant revenue growth, but together, they form a synergistic foundation that will likely catapult us to over $100 million annual revenue within the next 3–5 years.

We are transitioning from dozens of SmartGATE installations annually to hundreds, and ultimately to thousands per year, in the near future. This shift is underpinned by strong execution, proven solutions, and a growing pipeline of wins and opportunities. The accomplishments we've already achieved demonstrate our ability to deliver, and we are confident that our trajectory is not just upward but transformative.

Strategic Pillar 1: U.S. General Services Administration (GSA) Green Proving Ground Program

The U.S. GSA Green Proving Ground (GPG) program represents a watershed moment for Legend Power Systems. In 2022, we were selected as one of only eight participants out of more than 800 applicants—a testament to the innovation and impact of our SmartGATE platform. The GPG program was designed to identify and evaluate cutting-edge technologies capable of reducing energy consumption and improving building performance across the GSA's massive portfolio of over 3 billion square feet of facilities.

As part of this program, we are installing two SmartGATE systems: the first at a border facility in December 2024 and the second at a prominent building in the Federal Triangle in Washington, D.C., early in the first quarter of 2025. These installations are critical steps toward developing a broad based deployment plan within the GSA's extensive property portfolio.

The program also includes a pivotal collaboration with Oak Ridge National Laboratory which is developing a comprehensive model to quantify not only energy savings but also the significant impact of improved power quality on maintenance, repairs, and the lifespan of critical building systems. This model will serve as a template for property owners and operators nationwide, demonstrating how power optimization enhances efficiency, uptime, and long-term building value. We are anticipating this report to be publicly available during calendar 2025 and drive broader tangible models for understanding the impact of improving the quality of power on long term system reliability and lifetime. This will firmly quantify this critical part of the SmartGATE value proposition.

The GSA's embrace of SmartGATE technology is a transformative milestone that positions Legend Power Systems to unlock enormous potential within federal government facilities. With the GSA overseeing more than 3 billion square feet of real estate, our involvement in their Green Proving Ground program serves as a robust endorsement of our technology's effectiveness and reliability. This validation extends far beyond the GSA itself, establishing a precedent that will encourage broader adoption across other federal, state, and municipal agencies.

The federal government's rigorous evaluation and procurement standards often set the benchmark for other sectors. As SmartGATE technology is deployed and proven effective within the GSA's extensive portfolio, it not only strengthens our foothold in government markets but also acts as a powerful catalyst for adoption in private and commercial sectors. When organizations in industries like commercial real estate, multifamily housing, big-box retail, and education see the federal government leveraging SmartGATE to improve energy efficiency, reduce costs, and extend the lifespan of critical systems, they gain confidence in the value proposition and reliability of our solutions.

This broader market validation accelerates decision-making for non-governmental clients, reducing perceived risks and shortening sales cycles. It also enhances our brand equity, making SmartGATE synonymous with power optimization and long-term value creation. In this way, the GSA's adoption of our technology not only drives exponential growth within their portfolio but also opens doors to a much larger ecosystem of opportunities across public and private sectors, creating a ripple effect that propels us toward our long-term growth goals.

Strategic Pillar 2: United States Department of Defense (DoD)

The Department of Defense represents one of the most demanding and expansive infrastructure portfolios in the world. In mid-2024, we received a letter of intent from the DoD to install 10 SmartGATE systems at a key military base plagued by recurring power issues that disrupted critical operations.

This initial deployment focuses on 10 of the most critical buildings on a base with over 80 large facilities. These installations will address immediate challenges, with additional phases planned to expand the solution across the broader base. The DoD's infrastructure challenges—spanning thousands of buildings across multiple continents—underscore the necessity of reliable, efficient power management.

Recently, another major military base issued an energy performance contract to an Energy Service Company (ESCO), explicitly mandating the inclusion of SmartGATE to address ongoing power issues at over 1,000 buildings on site. This direct requirement validates our position as an essential part of military infrastructure modernization efforts and provides a blueprint for further adoption across DoD facilities globally.

Strategic Pillar 3: Energy Performance Contracts (EPC) with Energy Service Companies (ESCOs)

The Energy Performance Contracting (EPC) market, valued at US$10–15 billion annually, is a cornerstone of Legend Power Systems' growth strategy. Since securing our first ESCO project in 2019, we have steadily expanded our presence in this vital sector. The increasing recognition of the pivotal role power optimization plays in the success of energy projects has been a driving force behind this growth, positioning SmartGATE technology as a critical solution for ESCOs and their clients.

The EPC process is both rigorous and rewarding. It begins with preliminary proposals and vendor selection, advances through the investment-grade audit (IGA) phase, and concludes with final awards and project funding. While this process can be lengthy, projects that reach the IGA stage have a high probability of closing within 6–12 months, ensuring a consistent and reliable pipeline of revenue. The Company has multiple deals currently in the final stages of awards and funding approval.

A recent highlight in this sector is our success with a school district in the Southwest United States, a region grappling with severe power challenges that disrupted daily operations and impacted the district's ability to educate its students effectively. Frequent disruptions and power quality issues plagued the district, leading to significant downtime for classrooms, unreliable performance of critical systems, and costly damage to sensitive equipment.

Through a partnership with a leading ESCO, Legend Power Systems deployed SmartGATE technology across several schools in the district. The results were transformative. Power reliability and quality were restored, enabling the uninterrupted operation of critical educational and administrative systems. Additionally, the deployment ensured the protection and extended lifespan of newly installed equipment, including state-of-the-art HVAC systems, IT infrastructure, and advanced learning technologies.

These improvements not only stabilized the district's day-to-day operations but also enhanced the learning environment for students, allowing the focus to return to education rather than troubleshooting power issues. The district's success story has garnered attention from neighboring districts and other educational institutions facing similar challenges, further expanding our pipeline of opportunities in the education sector.

More broadly, ESCOs are increasingly recognizing that addressing power quality is fundamental to the long-term success of energy efficiency projects. SmartGATE's ability to optimize power and protect equipment ensures that these projects meet performance guarantees and deliver the expected savings over their lifetime. As a result, we are seeing accelerated adoption and an influx of larger contracts, particularly in sectors where operational reliability and cost control are paramount.

With proven successes like this in the education sector and beyond, Legend Power Systems is well-positioned to continue driving growth in the EPC market, leveraging our technology to deliver measurable value and long-term resilience for clients across industries.

Strategic Pillar 4: City of New York

Legend Power Systems' engagement with the City of New York began in 2018, and our collaboration has deepened through participation in the NYC IDEA program, where our solutions underwent extensive validation. The City of New York recently announced a US$4 billion initiative to electrify 100 existing schools and construct new, all-electric schools—a monumental investment in sustainable infrastructure. The New York Department of Citywide Administrative Services (DCAS) oversees more than 15 million square feet of city-owned buildings across New York City that are primarily used to house city agencies, including fire, police, museums, libraries, etc. DCAS' focus on improving energy performance aligns directly with Legend's value proposition, making it a prime candidate for broader collaborations. Beyond schools, DCAS also serves other agencies, including schools, fire, police, museums, libraries, housing and more. DCAS plays a significant role in energy management and efficiency upgrades, supporting the City's goals to reduce emissions and energy consumption in public facilities.

The ecosystem of engineering firms, electrical contractors, and switchgear providers involved in these projects has already opened doors to additional eight-figure opportunities, further cementing our role as a critical partner in New York City's electrification efforts.

Strategic Pillar 5: GSA Multiple Award Schedule (MAS)

We are on the cusp of securing a GSA MAS designation, expected within the next 60 days. This designation is pivotal, streamlining the procurement process for federal agencies and dramatically expanding our access to government markets.

For shareholders, the implications are profound. The GSA MAS will accelerate all the opportunities discussed above while delivering tangible financial benefits, including increased revenue, improved profit margins, and enhanced cash flow through faster payment cycles. Strategically, it enhances our visibility and reputation among government agencies at all levels, positioning Legend Power Systems as a trusted and reliable supplier.

Company Performance and Outlook

Our recent results underscore the success of our strategy. We have achieved record-breaking bookings this year, spanning new geographies and vertical markets that reflect intentional diversification. These wins have been accompanied by a significant improvement in Gross Margins, which are steadily returning to historical levels near 50%.

The performance of our 55 Gen III SmartGATE systems currently in the field continues to exceed expectations, driving strong customer satisfaction and repeat business. Our backlog positions us to achieve EBITDA-positive operations in 2025, with a robust pipeline to sustain growth well beyond.

Importantly, while the green investing sector has faced political challenges, Legend Power Systems' value proposition transcends political narratives. By delivering lower costs, increased profitability, and reduced risk, we provide enduring value rooted in traditional business fundamentals.

A Transformative Vision for Legend Power Systems

The opportunities we have secured are not hypothetical; they are wins already achieved, with execution underway. Our five strategic pillars, individually powerful, combine to create a transformative engine of growth.

With a proven technology, a growing pipeline, and a clear path to $100 million+ in revenue within 3-5 years, Legend Power Systems is poised to redefine the future of power optimization. For those invested in our journey, the future is extraordinarily bright, and the best is yet to come.

Thank you for your trust and partnership as we continue this remarkable transformation.

About SmartGATE

SmartGATE is an industry-leading, turnkey solution that identifies and fixes underperformance and waste in the electrical system of a commercial building. These performance issues often impact key areas of commercial real estate metrics including occupant safety and satisfaction as well as financial performance. This waste can also lead to higher operating costs, lower net operating income and other potential financial risks to the building owner, including adverse tenant experiences.

About Legend Power Systems Inc.

Legend Power Systems Inc. (www.legendpower.com) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

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