XPEL Announces Third Quarter Results

– Third Quarter Constant Currency Adjusted Revenues and Net Income
Increase 35% and 44% Respectively –

SAN ANTONIO–(BUSINESS WIRE)–XPEL Technologies Corp. (TSXV: DAP.U), a leading supplier of automotive
paint and headlamp protection films, announced results for the third
quarter and nine months ended September 30, 2015.

Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented,
“We continued to drive solid growth in the quarter. Revenue increased
35% and net income grew 44% on a constant currency basis, reflecting the
progress we are making in the U.S. and abroad. Brand awareness and the
reputation of the XPEL product continue to increase as we reach more
customers around the world, and our focus on enhancing the product line
and distribution channels positions us well for continued growth.”

For the Quarter Ended September 30, 2015:

Revenue: Revenue in the third quarter of fiscal 2015 was $10.9
million, a 29% increase as compared to revenue of $8.4 million in the
same prior year quarter. On a constant currency basis, revenues
increased 35% to $11.3 million.

Gross Margin: Gross profit as a percentage of sales decreased
slightly to 30% from 31% in the same quarter last year.

Expenses: Selling, general and administrative expenses as a
percentage of revenue was 24%, up slightly as compared to 23% in the
third quarter of 2014.

Net Earnings: Net income for the fiscal 2015 third quarter was
$398,082 or $0.02 per basic and diluted share based on 25,784,950 shares
outstanding, compared with net income of $473,296, or $0.02 per basic
and diluted share based on 25,784,950 shares outstanding, for the
corresponding prior year period. On a constant currency basis net income
increased 44% to $682,542.

EBITDA: For the three months ended September 30, 2015, the
Company reported EBITDA of $914,484 as compared to EBITDA of $862,729 in
the same prior year period. On a constant currency basis, EBITDA
increased 52% to $1,310,448 in the third quarter of 2015.

For the Nine Months Ended September 30, 2015:

Revenue: Revenue in the first nine months of fiscal 2015 was
$30.3 million, a 38% increase as compared to revenue of $22.0 million in
the same prior year period. On a constant currency basis, revenues
increased 42% to $31.3 million.

Gross Margin: Gross profit for the nine months as a percentage of
revenue remained unchanged at 31%.

Expenses: Selling, general and administrative expenses for the
nine months as a percentage of revenue was 23%, up from 21% in the same
prior year period.

Net Earnings: Net income for the first nine months of fiscal 2015
was $1,670,673, or $0.07 per basic and diluted share based on 25,784,950
shares outstanding, compared with net income of $1,527,657, or $0.06 per
basic and diluted share based on 25,784,950 shares outstanding, for the
corresponding prior year period. On a constant currency basis, nine
month net income increased 48% to $2,253,836.

EBITDA: For the nine months ended September 30, 2015, the Company
reported EBITDA of $3.1 million as compared to EBITDA of $2.7 million in
the same prior year period. On a constant currency basis, EBITDA
increased 48% to $4.0 million in the first nine months of 2015.

Mr. Pape continued, “In China, sales increased sequentially as a result
of a realigned distribution strategy which is already providing a better
platform for us as we grow into that market. In Canada, the Parasol
acquisition which we consummated in the first quarter has proven to be a
great strategic move for the company, although the weakness in the
Canadian dollar continues to impact our consolidated results.
Nonetheless, the acquisition has been quite accretive on a constant
currency basis.

“During the quarter, we soft launched a window film line and the initial
feedback has been very positive. This is as a complimentary product line
and one which is used by many of our customers. Furthermore, we continue
to focus on making our product the easiest to order and deliver, and are
in the process of rolling out a new ordering and account management
portal in the fourth quarter to provide best in class ordering
experience.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the third quarter and
nine month results today, November 30, 2015 at 11:00 a.m. Eastern Time.

To access the live webcast, log onto the XPEL Technologies website at http://www.xpel.com,
and click on “Investor Relations”.

To participate in the call by phone, dial (877) 407-8033 approximately
five minutes prior to the scheduled start time. International callers
please dial (201) 689-8033.

A replay of the teleconference will be available until December 30, 2015
and may be accessed by dialing (877) 660-6853. International callers may
dial (201) 612-7415. Callers should use conference ID: 13625605.

About XPEL Technologies Corp.

XPEL is the leading supplier of automotive paint and headlamp protection
films with over 70,000 vehicle-specific applications and a worldwide
network of trained installers. XPEL is the developer of the Design
Access Program software, and manufacturer of XPEL™ Automotive Paint and
Headlamp Protection Products. XPEL has forged the cutting-edge of
automotive protection technology, and leads the industry in quality,
technical support and customer service.

Additional information can be found on the Company’s website at www.xpel.com

Safe harbor statement

This release includes forward-looking statements regarding XPEL
Technologies Corp. and its business, which may include, but is not
limited to, anticipated use of proceeds from capital transactions,
expansion into new markets, and execution of the company’s growth
strategy. Often, but not always, forward-looking statements can be
identified by the use of words such as “plans,” “is expected,”
“expects,” “scheduled,” “intends,” “contemplates,” “anticipates,”
“believes,” “proposes” or variations (including negative variations) of
such words and phrases, or state that certain actions, events or results
“may,” “could,” “would,” “might” or “will” be taken, occur or be
achieved. Such statements are based on the current expectations of the
management of XPEL. The forward-looking events and circumstances
discussed in this release may not occur by certain specified dates or at
all and could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company, performance and
acceptance of the company’s products, economic factors, competition, the
equity markets generally and many other factors beyond the control of
XPEL. Although XPEL has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they are
made and XPEL undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.

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

XPEL TECHNOLOGIES CORP.
Condensed Consolidated Statement of Comprehensive Income
(Expressed in United States Dollars)
						Three Months Ended						Nine Months Ended
						September 30,						September 30,
						2015			2014			2015			2014
Revenue					$	10,874,243		$	8,410,089		$	30,298,220		$	22,030,271
Expenses
Direct costs						7,579,123			5,770,856			20,801,634			15,145,231
Selling, general and administrative						2,628,513			1,897,277			7,031,569			4,525,185
Unrealized foreign currency gain						(9,263)			–			(37,346)			–
Income from operations						675,870			741,956			2,502,363			2,359,855
Interest expense						72,185			13,260			173,049			20,663
Loss on sale of property, plant and equipment						1,603			2,475			3,641			1,610
						73,788			15,735			176,690			22,273
Net income before income tax						602,082			726,221			2,325,673			2,337,582
Provision for income tax
Deferred income tax expense (recovery)						(59,000)			(8,000)			200,000			19,000
Current income tax expense						263,000			260,925			455,000			790,925
Net Income					$	398,082		$	473,296		$	1,670,673		$	1,527,657
Exchange differences on translating foreign operations						(384,675)			–			(456,064)			–
Total comprehensive income					$	13,407		$	473,296		$	1,214,609		$	1,527,657
Net income attributable to equity holders of the Company						410,760			477,306			1,713,309			1,531,667
Non-controlling interest						(12,678)			(4,010)			(42,636)			(4,010)
						398,082			473,296			1,670,673			1,527,657
Earnings per share
Basic and diluted					$	0.015		$	0.018		$	0.065		$	0.059
Weighted average number of common shares outstanding						25,784,950			25,784,950			25,784,950			25,784,950

XPEL TECHNOLOGIES CORP.
Condensed Consolidated Balance Sheet
(Expressed in United States Dollars)
(unaudited)
				September 30,			December 31,
				2015			2014
Assets
Current
Cash and cash equivalents				$	3,367,518		$	1,474,130
Accounts receivable					3,795,332			2,287,342
Inventory					5,705,435			6,235,137
Prepaid expenses and sundry assets					914,451			347,472
Total current assets					13,782,736			10,344,081
Property, plant and equipment					1,186,037			790,343
Intangible assets					2,428,397			784,510
Deferred tax asset					—			163,000
Goodwill					1,722,323			526,243
Total assets				$	19,119,493		$	12,608,177
Liabilities
Current
Bank operating facility				$	2,800,000		$	900,000
Accounts payable and accrued liabilities					3,546,428			4,121,590
Income Tax Payable					330,092			—
Customer deposits					12,350			12,350
Vehicle notes payable					140,684			90,413
Current portion of Promissory note					359,485			–
Current portion of Bank loan payable					380,000			–
Total current liabilities					7,569,039			5,124,353
Promissory note					1,100,194			–
Bank loan payable					1,298,333			–
Deferred tax liability					460,626			–
Total liabilities					10,428,192			5,124,353
Equity
Capital stock					6,635,133			6,635,133
Contributed surplus					2,165,130			2,165,130
Accumulated other comprehensive income					(471,785	)		(15,721	)
Retained Earnings (Deficit)					325,327			(1,387,982	)
					8,653,805			7,396,560
Non-controlling interest					37,496			87,264
Total liabilities and equity				$	19,119,493		$	12,608,177

Constant Currency

The Company reports results in U.S. Dollars, but does business on a
global basis. Exchange rate fluctuations affect the U.S. Dollar value
for foreign currency revenue and expenses and may have a significant
effect on reported results. Comparisons are made to the prior year in
constant currency terms, which Management believes is helpful in
understanding the Company’s performance. Constant currency is calculated
by converting current period results using the prior year currency
exchange rates.

Non-IFRS Measures

In addition to disclosing results in accordance with IFRS as issued by
FASB, the Company also provides supplementary non-IFRS measures as a
method of evaluating the Company’s performance.

Management uses EBITDA as a measure of company-wide performance. EBITDA
is defined as earnings before interest, taxes, depreciation, and
amortization. Management believes EBITDA is a useful measure to allow
period-to-period comparison of the Company’s operating performance.
EBITDA does not have a standardized meaning under IFRS and is not
necessarily comparable to measures presented by other Companies. EBITDA
excludes components that are significant in understanding and assessing
our results of operations and cash flows. EBITDA does not represent
funds available for Management’s discretionary use and is not intended
to represent cash flow from operations. EBITDA should not be considered
a substitute for Net Income prepared in accordance with IFRS as issued
by the FASB.

EBITDA Reconciliation

		Three Months Ended				Nine Months Ended
		September 30 2015		September 30 2014		September 30 2015		September 30 2014
Net Income		$	398,082	$	473,296	$	1,670,673	$	1,527,657
Interest			72,185		13,260		173,049		20,663
Taxes			204,000		252,925		655,000		809,925
Depreciation			70,107		36,851		169,988		98,490
Amortization			170,110		86,397		466,868		244,844
EBITDA		$	914,484	$	862,729	$	3,135,578	$	2,701,579

Contacts

XPEL Technologies Corp.
Ryan Pape, 210-678-3700
Chief
Executive Officer
or
Institutional Marketing Services (IMS)
John
Nesbett/Jennifer Belodeau, (203) 972-9200
jnesbett@institutionalms.com