K-BRO ANNOUNCES NORMAL COURSE ISSUER BID

• K-Bro Linen Inc. received TSX acceptance for a Normal Course Issuer Bid (NCIB).
• Program allows repurchase of up to 1,229,584 common shares (~10% of public float).
• Program duration is May 12, 2026 through May 11, 2027.
• Daily trading limit set at 5,341 shares (approx. 25% of average daily volume).
• Automatic purchase plan intended for blackout periods to ensure compliance.
• Follows Q1 2026 earnings release showing 52.9% revenue growth and positive integration progress of Stellar Mayan acquisition.

• The NCIB is a standard capital allocation tool indicating management confidence in the stock's undervaluation or desire to return cash to shareholders.
• It does not fundamentally alter the business model, revenue streams, or operational risks associated with the company.
• Given the Q1 earnings beat (52% revenue growth) was already priced into the share price (jumping from ~$39 to $41.50 on May 6), this announcement is incremental rather than transformative.
• The buyback supports liquidity and signals confidence but lacks the "game-changing" nature of a major acquisition, strategic investor entry, or significant debt restructuring.
• Risk-averse view: While positive for share price support, it does not mitigate underlying operational risks like integration challenges or debt servicing costs.

• K-Bro Linen Inc. operates in the commercial laundry and textile rental sector.
• Flagship segments: Healthcare (61% of Q1 revenue) and Hospitality (39% of Q1 revenue).
• Strategic Growth Initiative: Integration of Stellar Mayan (UK-based), completed June 2025, expanding footprint into UK healthcare and hospitality sectors.
• Operational Status: Integration progressing as expected with cost synergies anticipated over 12-24 months.