US Contract Update

Solution Dynamics (SDL or Company) noted in its Interim Report, released 27 February 2020, that the Company had been selected as the preferred supplier of a comprehensive communications software workflow platform. The customer is a major US-based technology company that provides commerce solutions including technology for physical and digital communications. SDL advises that Solution Dynamics Inc. (SDL's US subsidiary) has now successfully concluded and signed a multiyear contract. SDL's solution will be delivered through its proven Jupiter platform to enable businesses to access cloud-based print and digital services. Businesses need solutions for their remote workers to access cloud based print and digital services and facilitate customer communications. Jupiter provides a technology platform which links together customer communication origin points such as ERP, transactional and marketing output with production and fulfilment on a globally distributed basis. Closely integrated with over 300 service providers globally, customers can use a highly flexible web service API to achieve simultaneous concurrent fulfilment across five continents, all while retaining visibility and control of the process via an intuitive and mobile friendly web portal. The global roll out of this new contract is expected to commence during April with full implementation progressively over a number of phases in the coming 18 months. It has the potential to have a material profit impact for SDL in FY2021. Some revenues from this US contract are likely during the fourth quarter of FY2020. While SDL's US subsidiary is making substantial progress, the Company notes that the drop off in non-essential communications for the New Zealand business is greater than initially envisaged (as are volumes generally across the UK and US). SDL intends to apply for NZ government wage subsidy support to ensure continuing employment of those New Zealand staff involved in servicing the domestic business. For further information please contact: John McMahon Chair +61-(0)410-411 806 End CA:00351361 For:SDL Type:MKTUPDTE Time:2020-04-07 09:52:06