D-BOX recovers from ransomware cyberattack and announces the gradual resumption of its activities

Deferral of filing of financial results for first quarter ended June 30, 2021

MONTREAL, July 28, 2021 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (“D-BOX” or the "Corporation") (TSX: DBO), a world leader in haptic and immersive entertainment, announces that the Corporation is gradually resuming its activities following a ransomware cyberattack against its internal IT systems announced on July 14, 2021. All major IT systems have been restored and the restoration work should be finalized in the next few weeks. Production was never completely interrupted, and recovery of its various internal IT systems has begun. Although the release of the Corporation’s unaudited and condensed interim consolidated financial statements and management’s discussion and analysis for the quarter ended June 30, 2021 (the “Required Filings”) will be deferred, D-BOX is nevertheless in a position to announce that it anticipates, on a provisional basis, estimated revenues of $ 3.1 million for the first quarter ended June 30, 2021, an increase of approximately 40% compared to the same quarter last year.

D-BOX has always maintained a clear separation between its internal IT systems and services for its partners. The Corporation believes that the impact of the cyberattack was limited to internal systems, and that its services to studios and theatre operators were not affected. In addition, according to the report of an external firm specializing in cyber incidents, analyses show that its clients’ systems were not breached or affected during the cyberattack. Therefore, D-BOX does not anticipate that any security patches to its services or software updates will be required for its partners as a result of the cyberattack. In addition, the Corporation has, as a precautionary measure, offered all its employees and directors an identity theft and fraud protection service through Equifax for a period of 12 months.

“Security is a top priority and D-BOX is committed to continuing to take all appropriate measures to ensure the highest integrity of all our systems,” said Sebastien Mailhot, President and CEO of D-BOX. “I’m proud of the efforts of our IT team and external advisors, as they mitigated the attack and accomplished an enormous amount of work in order to resume activities. D-BOX is committed to continuing to communicate directly with all of its clients and partners, whom we thank for their patience as we resolve this situation. The Corporation believes that the financial impact of this cyberattack on the results should be negligible."