Adaptive Ad Systems Reports Solid Financial Performance Q2 2019 Generates Profit for 19th time in a Row

August 14, 2019

Vancouver, Wash. August 15, 2019. Adaptive Ad Systems, Inc. (OTC:AATV), a company that provides Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for the U.S. cable TV and Satellite markets, today reports another profitable second quarter 2019 for the 19^th time in a row.

As we pointed out before, Adaptive always produces stronger “election year” financial results than during
“non-election” years, analogous to the seasonal performance flow in other companies and industries. While Adaptive’s 2^nd quarter of 2019 still falls into a “non-election” lower frequency advertising market that is typical for the time period before any significant Domestic election event, the financial results for the second quarter of 2019 again showed profit for the 19^th time in a row.

To make a more objective comparison, it is fair to compare the current financial performance to the second quarter of 2017, another “non-election” time period with lower ad frequency, as opposed to a high-frequency ad market during the same period in 2018, the mid-term election. Comparing revenue and profit for these time periods to the second quarter of 2019 again show a significant improvement over the results for the second quarter of 2017.

Revenues of $1.33 Mill compared to $955,000 in Q2 of 2017 – Improvement 0f 39%
Net Income before taxes of approximately $277,647 compared to $145,000 in 2017.
Michael Heil, Chairman & CEO of Adaptive states: “We base our consistently improving financial performance on the fact that over the last six months we have expanded our management, development and sales team and are continuing to aggressively accelerate the development of our advanced and disruptive digital software and hardware technology. We have installed a significant number of new “head-in” systems, and accordingly keep increasing our subscriber base, so we can continue to grow exponentially”.

Mr. Heil continues: ”Offering our advanced proprietary software and hardware to clients in the underserved cable TV advertising markets that cannot be economically served by any of the major players, has established us as a market leader in these markets. Further advancing our disruptive technology in those markets creates an easily accessible large network of Adaptive network locations and allows clients to take advantage of our unique profit-sharing model. With Adaptive’s newly established central , state-of -the art “Cue-tone” facility in Mesa, Arizona, which allows the Company to exceed 98% efficiency in inserting video advertising content into all cable TV networks in a very economical way, the Company has taken yet another aggressive step towards becoming the largest technology and ad service provider as a one-stop provider for all underserved cable TV markets”.

Adaptive’s technology now dynamically and economically serves over 210 designated marketing areas in the United States and the Company has deployed over 160 systems in over two hundred of these markets in approximately 34 states in the US.

The Company is now even better prepared for the next high-frequency election year advertising cycle. With the expected dramatic increase in advertising frequency during the second half of 2019 and for all of 2020, based on the early start of the new ad campaigns for the 2020 elections, the Company anticipates that it will continue to further improve its financial performance in Q3 and Q4, 2019 and for the full year 2020.

ABOUT ADAPTIVE AD SYSTEMS INC.

Adaptive Ad Systems Inc. is a digital media and video communications streaming Company that together with its subsidiary manufactures develops and deploys ad insertion and streaming media hardware and proprietary processing software (DDAI) for the cable TV, Satellite and IPTV markets. Adaptive is focused on the 2^nd and 3^rd tier cable company networks. Its digital ad insertion technology and unique profit-sharing model overcomes the barriers that typically prevent the insertion of National and Local advertising products into those network locations. Adaptive exclusively sells all available advertising in each market it has contracted, maintains technology ownership and has implemented a unique and advantageous profit-sharing model with its clients. Adaptive also provides broadband and cable TV services in some niche markets. For additional information, please visit: www.adaptiveadsystems.com.

FORWARD-LOOKING STATEMENTS

Any statements contained in this press release that do not describe historical facts constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for future operations, the development, regulatory approvals and commercialization of the Company’s products, or any of the Company’s proposed services, systems, services, partnerships or acquisitions. Such forward-looking statements are not meant to predict or guarantee actual results and performance and actual events or results may differ considerably. Factors that may cause actual results to differ materially from any projections may include, without limitation, the Company’s inability to obtain additional financing, delays in the development of its products, the impact of significant new or changing government regulation on the industry, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company’s general failure to implement the Company’s business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any change in events or circumstances that may arise after the date of this release.

ADAPTIVE AD SYSTEMS, INC.
Michael Heil, CEO
4400 NE 77th Avenue, Suite 275
Vancouver, Washington 98662
info@aatv.com
www.aatv.com

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