STC Sangoma Technologies Corporation

Sangoma Technologies Corporation (TSXV: STC), a trusted leader in delivering cloud-based Communications as a Service (“CaaS”) solutions, today provided an update regarding its investigation into the data breach announced on December 24, 2020.

To date, the Company’s investigation has confirmed that the attackers encrypted, copied and published a significant number of confidential files relating to the Company’s financial information, its corporate development and M&A efforts, certain private employee data, as well as certain customer information and ordering history. While Sangoma’s investigation is still ongoing, there is currently no evidence that the compromised customer information includes bank account or payment card data.         The Company believes strongly that customers’ ability to use Sangoma products and services continues without interruption or issue. To date, the investigation has also uncovered no evidence that any of the Company’s products or services have been impacted by this cyber attack, nor is there any evidence that the code inside Sangoma’s products has been compromised or that the use of the products would create a security risk to a customer’s business. Nevertheless, as announced previously, and out of an abundance of caution, the Company continues to recommend that customers change their Sangoma passwords and that they continue to practice good security hygiene, including limiting remote access to only that which is necessary and monitoring for unauthorized access attempts.

Sangoma has taken immediate action to mitigate and manage the impact of this attack. The Company has retained a deeply experienced team of top third-party cybersecurity experts, is filing a report with law enforcement officials, and has also deployed additional security measures to assist in detecting and preventing any future attempts or incidents of unauthorized access to or malicious activity on its corporate network. The Company has also promptly notified all its employees of the incident and the possible impact on the security of their personal data, has provided them with actions they can take to protect that personal information from theft and misuse, and is putting in place 24 months of credit and dark web monitoring at the Company’s expense.

In addition, as the investigation progresses, the Company will be proactively and directly contacting any specific customers, and other third parties, whose data has been compromised in order to provide further information and appropriate support.

“On behalf of the entire management team and board at Sangoma, I sincerely apologize to our customers, employees, partners and all other stakeholders for the stress and inconvenience caused by this cyber attack. This has admittedly been a challenging time for our Company. We’ve built a strong and trusted reputation with the investor community and while this incident is certainly embarrassing, I’m committed to maintaining full transparency in our reporting of it, and I fully expect to emerge from it stronger than ever,” said Bill Wignall, President and CEO of Sangoma. “We have been working around the clock throughout every day of this holiday period and will continue to do exactly that. At the same time, I want to be completely clear that this incident has had no impact on our corporate strategy or execution. We continue to maintain normal operations, and we remain as focused as ever on building our CaaS cloud-based solutions, winning new subscribers, supporting our valued customers, delivering sustainable growth for our shareholders, generating profitability and cash flow, and executing on the exciting opportunities that exist in our acquisition pipeline.”

Sangoma is committed to providing its stakeholders and the public with further updates of factual and accurate information as it becomes available and appropriate to share in light of the active, ongoing investigations.

About Sangoma Technologies Corporation

Sangoma Technologies is a trusted leader in delivering value-based Communications as a Service (CaaS) solutions for businesses of all sizes. Sangoma’s cloud-based Services include Unified Communication (UCaaS) business communications, Meetings as a Service (MaaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service (DaaS), and Access Control as a Service (ACaaS). In addition, Sangoma offers a full line of communications Products, including premise-based UC systems, a full line of deskphones and headsets, and a complete connectivity suite (gateways/SBCs/telephony cards). Sangoma’s products and services are used in leading UC, PBX, IVR, contact center, carrier networks, office productivity, and data communication applications worldwide. Sangoma is also the primary developer and sponsor of Asterisk and FreePBX, the world’s two most widely used open source communication software projects.

Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSX VENTURE: STC). Additional information on Sangoma can be found at: www.sangoma.com.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the ongoing investigations into and actions being undertaken in response to the cyber attack, the anticipated impact of the cyber attack on our products and services, the future success of our business, development strategies and future opportunities. Forward-looking statements include, but are not limited to, statements concerning estimates of future revenue, expected expenditures, expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions indicate forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements are based on the opinions and estimates of management on the date that the statements are made and involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur or will differ materially from those expected. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable based on the current business environment, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management’s discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, the variability of sales between one reporting period and the next, changes in technology, changes in the business climate in one or more of the countries that Sangoma operates in, changes in the regulatory environment, the rate of adoption of the company’s products in new markets, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and Sangoma undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by law. Readers are directed to Sangoma’s filings on SEDAR with respect to Management’s Discussion and Analysis of Financial Results for the basis of Sangoma’s reconciliation of EBITDA to net income as calculated under IFRS.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Sangoma Technologies Corporation      
David Moore                                              
Chief Financial Officer                              
(905) 474-1990 Ext. 4107
dsmoore@sangoma.com

Provident Communications
Morgan McLellan
647-8024825