---Exxe Group generated substantial quarterly income growth of 108.8%

---Five core asset categories had solid quarterly revenue/profit contributions

---High operating performance can be attributed to tech infrastructure platforms

---Exxe roadmap outlining the financial structure and asset spin-off plans to occur this quarter

NEW YORK, NY / ACCESSWIRE / November 17, 2022 / Exxe Group, Inc. (OTC PINK:AXXA), ("Exxe" or the "Company") a diversified fintech company, is pleased to announce that the Company has published its fiscal second quarter (Sept 2022) and six-month (Apr 2022 - Sep 2022) financial results for the period ended September 30, 2022.

Financial Highlights

Exxe Group once again generated record quarterly results for both revenue and net income. Financial results for the fiscal 2023 second quarter ended September 2022 included revenue of $12,956,036 as compared with $11,022,713 for the same period a year ago, a 17.5% rise. Comprehensive income of $3,825,044 represented a 108.8% jump versus the $1,831,875 comprehensive income recorded in the September 2021 quarter. A combination of the asset mix, namely M Meditec and M Moto, served as revenue and gross profit drivers. Gross profit margin reached a new record--82%--as compared with 39.5% recorded last year.

Management believes that this gross profit margin rate confirms that Exxe Group assets' evolution toward digital technology and operational platforms has led to revenue growth and a profit level that rivals software company margins. Operating margin of 31.7% bested the previous period's rate of 20.8%, a figure that is also akin to technology firm performance.

For the first six months of the current fiscal year, revenue totaled $24,690,268, a slight increase over the $24,302,264 generated for the first half of the 2022 fiscal year. Led by a similar 80%+ gross margin in the first quarter, total operating margin for the first half of the 2023 fiscal year was 30.4%, as compared with 22.4% for the year-ago period. In addition to the strong operational results, Exxe is pleased to report a roughly $4.4 million decline in current liabilities, a nearly 18% drop in current debt from the March 2022 period (fiscal 2022 year-end).

Notable Business Highlights

As published earlier this quarter, both M Meditec and the automotive assets reported impressive performance. M Meditec generated record quarterly revenue of $2,173,480 as compared with $1,402,034 for the same period a year ago, representing a 55% increase. EBIT of $1,271,411 was a 117.8% jump from the $583,606 recorded a year ago. Thus, EBIT for this quarter was nearly equivalent to the revenue generated in the September quarter last year. The automotive division generated record quarterly revenue of $4,886,700 as compared with $2,753,837 for the same period a year ago, representing a 77.4% increase. M Moto in particular served as the sales driver, with the top-line nearly doubling to the 95.6% level. Exxe is implementing a comprehensive plan to build on these divisions' successful momentum.

New Initiatives

Over the past few months, Exxe leadership has been negotiating with new acquisition targets in the real estate and technology industries that would complement our existing assets and positioning. We are hopeful that one or two transactions may move forward in the coming weeks. Exxe plans to announce them once a Letter of Intent (LOI) is executed.

Separately, management has elected to explore a new shares-related strategy that we believe could benefit both the Company and our shareholders. Rather than execute occasional conversions at varied prices, the Company is considering a 100M - 200M stock addition to several biggest debt holders at a premium to the current market price. Importantly, this move would eliminate any future issuances for a period of 6 to 12 months. Moreover, once completed, the number of added shares in one event would be approximately the same number of shares that may be added on an occasional basis over a 6-12 month period. Management believes that this aggressive approach will enable Exxe to reduce debt and interest expenses. Plus, this move could swiftly expand free cash flow, which in turn enhances our positioning with new potential deals.

Future Roadmap

Exxe management has made progress on its objective to set the stage for future asset spin-offs. As part of the process, Exxe has endeavored to streamline and simplify its asset structure in order to enhance and potentially accelerate this initiative. Some of the steps in which management is engaged include debt reduction, modified and improved deal structures/values, focus on current and near-term, top-performing assets, and the potential disposition of non-core assets. These steps can culminate in future audits of select assets.

As part of its operational streamlining Exxe has re-classified its assets into five categories, as noted below. Management believes that this move will favorably impact the success of its various assets' tech platforms, on an operational basis. In addition, a potential, subsequent achievement of this shift is broader investor perception and interest in the Exxe story, thereby leading to enhanced shareholder value.

The Exxe Group:

Automotive Tech

Design & Media Tech

Medical Tech

Real Estate Tech

Agri/Trading Tech

Prior to the end of the quarter, Exxe plans to reveal its new roadmap and strategy as it relates to each of its asset categories and their underlying assets. Plus, management will provide updates on the aforementioned financial and other structural issues which are germane to executing Exxe's spin-off plans.

Dr. Eduard Nazmiev, Exxe Group CEO, commented on the strong financial performance for the period and the Company's present and future positioning. "We are very pleased with consecutive quarters of record performance. I am perhaps most pleased regarding our strong gross margin production. In our view, this performance should indicate to investors that Exxe is a unique company whose tech platforms have enabled basic industries to generate typical tech company results. Moreover, the potential growth in the future value of these high-profit businesses and the leverage of tech with our real estate assets likely places Exxe in a unique spot among its peers. Thus, we are very encouraged regarding future operating performance, along with asset growth and value among our diversified assets that are joined with technology platforms."

"Exxe leadership continues to work on our auditable asset spin-off strategy and individual asset category roadmap. We look forward to providing this information and related updates before the end of the quarter. We believe this detailed positioning may enhance investor perception and attention, thereby expanding shareholder value."

About Exxe Group

Exxe is a diversified fintech platform company with assets in real estate, architectural design, agricultural, automotive, medical, media, and trading technology. Exxe Group acquires controlling equity interests in undervalued assets, taking an active role by providing both capital and structured financing, as well as management and technology expertise.

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Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.

CONTACT: Exxe Group IR: info@exxegroup.com

SOURCE: Exxe Group, Inc.