K-BRO ANNOUNCES THE RENEWAL OF ITS NORMAL COURSE ISSUER BID

(TSX: KBL)

EDMONTON, AB, May 16, 2024 /CNW/ - K-Bro Linen Inc. ("K-Bro" or the "Corporation") today announces that the TSX has accepted its notice of intention to proceed with a normal course issuer bid.

K-Bro's Board of Directors believes that a normal course issuer bid represents an appropriate and desirable use of its available liquidity to increase shareholder value and is in the best interests of K-Bro and its shareholders.

Pursuant to the notice, K-Bro may purchase up to 754,247 of its common shares ("Shares") through the TSX and/or alternative Canadian trading systems, representing approximately 10% of the public float of 7,542,474 Shares as at May 7, 2024, during the twelve-month period commencing May 21, 2024 and ending May 20, 2025. As at May 7, 2024 there were 10,523,857 Shares issued and outstanding. Under the normal course issuer bid, other than purchases made under block purchase exemptions, K-Bro may purchase up to 2,080 Shares on the TSX during any trading day, which represents approximately 25% of 8,323 Shares, which represents the average daily trading volume on the TSX for the most recently completed six calendar months prior to the TSX's acceptance of the notice of the normal course issuer bid. Any Shares purchased under the normal course issuer bid will be cancelled.

The Corporation's prior normal course issuer bid commenced on May 18, 2023 and will expire on May 17, 2024, under which the Corporation was authorized to purchase for cancellation up to 881,481 Shares. Under this normal course issuer bid, as of May 7, 2024, K-Bro purchased 310,678 Shares by means of open market transactions, through the facilities of the TSX, other markets and alternative Canadian trading systems, at a weighted average price of $33.40 per Share.

Although K-Bro intends to purchase Shares under its normal course issuer bid, there can be no assurances that any such purchases will be completed. Any purchases made under the normal course issuer bid will be made by K-Bro subject to favourable market conditions at the prevailing market price at the time of acquisition and through the facilities of the TSX. K-Bro intends to enter into an automatic purchase plan to be effective May 21, 2024 during the term of the normal course issuer bid. The automatic purchase plan will allow for purchases by K-Bro of Shares during certain pre-determined blackout periods.

CORPORATE PROFILE

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently operates ten processing facilities and two distribution centres under two distinctive brands, including K-Bro Linen Systems Inc. and Buanderie HMR, in ten Canadian cities: Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

Fishers was established in 1900 and is an operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors. Fishers' client base includes major hotel chains and prestigious venues across Scotland and the North of England. The company operates in Scotland and the North of England with facilities in Cupar, Perth, Newcastle, Livingston and Coatbridge.

Shortridge has operated as a family run business since the 1990s and is based in Cumbria, with plants in Lillyhall, Dumfries and a distribution depot in Darlington. It specializes in providing high quality laundry services to local independent hospitality businesses, including hotels, B&Bs, self-catering units and restaurants.

Additional information regarding the Corporation including required securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators' website at www.sedarplus.ca; the System for Electronic Document Analysis and Retrieval + ("SEDAR+").

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent K-Bro's intentions, plans, expectations and beliefs, and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in securities filings that can be obtained on SEDAR+.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

SOURCE K-Bro Linen Inc.

Kristie Plaquin, Chief Financial Officer, K-Bro Linen Inc. (TSX: KBL), Phone: [phone], Email: [email protected], Web: www.k-brolinen.com