XPEL Technologies Announces Private Placement Financing

SAN ANTONIO–(BUSINESS WIRE)–XPEL Technologies Corp. (TSXV: DAP.U) is pleased to announce that
it intends to issue, by way of a non-brokered private placement up to
2,097,903 of its Common Shares at a purchase price of $1.43 per share
for gross proceeds of up to $3,000,000. The securities to be issued will
be offered and sold in each of the Provinces of Canada, pursuant to
exemptions from the prospectus delivery requirements under applicable
securities laws. The net proceeds of the offering will be used for
future acquisitions, capital expenditures and general corporate purposes.

The closing of the private placement is expected to occur on or about
January 31, 2017, and is subject to certain conditions, including the
receipt of all necessary regulatory approvals, as well as the approval
of the TSX Venture Exchange. The Common Shares will be subject to a
statutory four-month holding period, and such other restrictions as may
be required by applicable securities laws. It is currently anticipated
that certain officers. directors and employees of XPEL will purchase
some of the Common Shares being offered.

The Common Shares to be offered have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended or any U.S.
state securities laws, and may not be offered or sold in the United
States or to, or for the account or benefit of, United States persons
absent registration or any applicable exemption from the registration
requirements of U.S. federal or state securities laws. This News Release
shall not constitute an offer to sell or the solicitation of an offer to
buy securities in the United States, nor shall there be any sale of the
Common Shares offered in any jurisdiction in which such offer,
solicitation or sale would be unlawful.

For more information concerning the Corporation, please refer to the
Corporation’s profile on the SEDAR website at www.sedar.com.

About XPEL Technologies Corp.

XPEL is the leading supplier of automotive paint, headlamp and window
protection films with over 70,000 vehicle-specific applications and a
worldwide network of trained installers. Using XPEL’s propriety software
and patented materials, our professional design team develops products
that deliver the ultimate in vehicle protection, meeting the demands of
a broad range of makes and models. 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 XPEL’s website at www.xpel.com

Forward-Looking Information

Certain statements contained in this press release constitute
forward-looking information. These statements relate to future events or
future performance. The use of any of the words “intend”, “may”, “will”,
“expect”, and similar expressions and statements relating to matters
that are not historical facts are intended to identify forward-looking
information and are based on management’s current beliefs or assumptions
as to the outcome and timing of such future events. Actual future
results may differ materially. In particular, this press release
contains forward-looking information with respect to the offering of
Common Shares, statutory hold periods and the uses of the net proceeds
of the offering. Various assumptions or factors are typically applied in
drawing conclusions or making the forecasts or projections set out in
forward-looking information. Those assumptions and factors are based on
information currently available to XPEL. The material facts and
assumptions include obtaining approval of the TSX Venture Exchange of
the proposed offering; the availability of certain prospectus exemptions
in respect of the offering; and the intended use of proceeds remaining
in the best interests of XPEL. The corporation cautions the reader that
the above list of risk factors is not exhaustive. The forward-looking
information contained in this News Release is made as of the date hereof
and the Corporation is not obligated to update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by applicable securities
laws. Due to the risks, uncertainties and assumptions contained herein,
investors should not place undue reliance on forward- looking
information. The foregoing statements expressly qualify any
forward-looking information contained herein.

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

Not for distribution to U.S. Newswire Services or for
dissemination in the United States. Any failure to comply with this
restriction may constitute a violation of U.S. federal or state
securities laws.


Public Relations:
CommCore Consulting Group
Dale Weiss,
Institutional Marketing Services (IMS)
Nesbett/Jennifer Belodeau, 203-972-9200