2 August 2022

ENGAGE XR Holdings Plc

("ENGAGE XR" or the "Group")

Pre-Close Trading Update and Notice of Results

ENGAGE XR Holdings Plc, a virtual reality ('VR') technology company, is pleased to provide an update on trading for the six months ended 30 June 2022.  The Group's interim results for the six months ended 30 June 2022 are expected to be published on Tuesday 13 September 2022.

The Group is trading in line with market expectations and the year to date has been one of progress as the Group continues to win new customers for its proprietary software platform ENGAGE as well as expanding its relationships with existing clients. The Group's new Metaverse offering for enterprises - ENGAGE Link - is expected to launch in Q4 2022.

Financial Highlights:

·    Total revenue for the Group is expected to be €1.76m (H1 2021: €1.25m)

·    ENGAGE revenue up 62%. Unaudited H1 2022 revenue is expected to be c.€1.46m (H1 2021: €0.90m)

·    ENGAGE revenue comprised 83% of H1 2022 total revenue, an increase of 11% on the prior year (H1 2021: 72%)

·    Unaudited gross margin 81% in H1 2022 (H1 2021: 80%)

·    Net cash of €4.9m as at 30 June 2022

Operational Highlights:

Engage

·    New ENGAGE clients year to date include Kuehne + Nagel International AG, the global transport and logistics company, Kia, and Natixis.  Furthermore, South Korean company D'Carrick Co Ltd signed a new contract worth €300,000 over a three-year period

·    US Partner VictoryXR announced the launch of 10 Metaversities funded by Meta and built on the ENGAGE platform

·    ENGAGE now has 24/5 customer support with teams in the US, Australia, and Europe available to help customers. A new improved version of ENGAGE (v2.3) was launched in July 2022 (Details here: https://www.youtube.com/watch?v=KQk5FG1Z8xc)

ENGAGE Link

·    Ahead of the launch of ENGAGE Link later this year, HTC and The Virtual Human Interaction Lab at Stanford University have been confirmed as launch partners

·    The Group has expanded its US presence ahead of the launch, including the appointment of Chief Revenue Officer, Richard Allin, and Director of Marketing, Kyle Horner. ENGAGE XR's sales team is now strong across USA, Europe, and Asia comprising 10 employees

·    A demonstration of ENGAGE Link is here: https://www.youtube.com/watch?v=ITtz7ErWhMs&t=2s 

David Whelan, CEO, ENGAGE XR, said: "ENGAGE has continued its impressive growth with more new customers embracing the technology and a continued increase in existing customers using the platform. A growing number of blue-chip companies are adopting virtual reality for events, training, and engaging with stakeholders worldwide. This gives us confidence in the prospects of ENGAGE Link, our new Metaverse platform set to launch later this year. We are extremely excited about the interest being shown by major organisations in our new technology.

"The Metaverse is set to change global business practices and ENGAGE XR aims to be at the forefront of this revolution."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

About ENGAGE XR

ENGAGE XR Holdings plc (AIM: EXR; Euronext Growth: EXR) is a virtual reality ('VR') technology company focused on becoming a leading global provider of virtual communications solutions through its proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events. 

ENGAGE is currently developing a new fully featured corporate metaverse, ENGAGE Link, with the launch expected in the final quarter of 2022.

EXR is listed on AIM in London and on the Euronext Growth Market in Dublin, a market operated by Euronext Dublin. 

For further information, please visit: www.engagexrholdings.com (LinkedIn: @Engage XR Holdings plc Twitter: @engage_xr)

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.