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Kuuhubb Inc. Reports First Quarter Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 11/30/17 -- Kuuhubb Inc. ("Kuuhubb" or the "Company") (TSX VENTURE: KUU), a technology company focused on acquiring, developing and distributing lifestyle and mobile video game applications, announces its financial results for the three month period ended September 30, 2017. The Company's consolidated financial statements as at and for the three months ended September 30, 2017 and related management's discussion and analysis can be found on the Company's SEDAR profile at www.sedar.com. References to "Cdn$" are to Canadian dollars, references to "US$" are to United States dollars and references to "EUR" are to Euros. The Company's financial year end is June 30.

Financial Highlights for the Three Month Period Ended September 30, 2017:


--  The Company recognized revenue of Cdn$3,587,523 during the three months
    ended September 30, 2017.

    As Kuuhubb acquired Sumoing Oy (Recolor Oy) on August 18, 2017, these
    results only include Sumoing Oy revenues from August 18 to September 30.
    Pro forma figure for group revenue for the quarter was US$4.93 million
    if the Sumoing Oy acquisition had occurred on July 1, 2017.


--  The Company recorded a net loss of Cdn$2,224,227 during the three month
    period ended September 30, 2017.

    Expenses for the quarter included Sumoing Oy (Recolor Oy) acquisition-
    related one time expenses totalling Cdn$0.51 million.


--  The Company had shareholders' equity of Cdn$29,166,866 as at September
    30, 2017.

Growth Activities during the Quarter:


--  In July 2017, the Company announced that it had entered into a strategic
    partnership with India's largest talent management agency Kwan
    Entertainment Talent Management Agency.


--  In August 2017, the Company closed a brokered private placement offering
    of subscription receipts of the Company (the "August Financing") led by
    Cormark Securities Inc. and including Echelon Wealth Partners Inc. The
    August Financing included the sale of 16,445,000 subscription receipts
    at a price of Cdn$1.05 per subscription receipt, for aggregate gross
    proceeds of Cdn$17,267,250. Following satisfaction of the escrow release
    conditions, the Company issued 16,445,000 common shares pursuant to the
    exercise of the said subscription receipts for no additional
    consideration.


--  In August 2017, Kuuhubb, through its wholly-owned subsidiary Kuuhubb Oy,
    completed the acquisition (the "Sumoing Acquisition") of all of the
    outstanding shares of Sumoing Oy ("Sumoing"), a company incorporated
    pursuant to the laws of Finland and creator of the world's leading
    digital coloring book application called Recolor (the "Recolor App").
    The Recolor App is a high-quality digital coloring book on mobile,
    including 1,500+ beautiful art illustrations and unique 3D content.
    Sumoing is a Helsinki-based game development studio that specializes in
    lifestyle genre apps targeted to the female audience. Sumoing's
    applications have more than 40 million all-time downloads. Total
    consideration paid for the Sumoing Acquisition was Cdn$12,174,137
    (EUR8,233,000). A portion of the net proceeds from the August Financing
    were used to fund this purchase price.

Subsequent Events:


--  On October 25, 2017, Sumoing Oy changed its name to Recolor Oy.


--  Following the acquisition of Sumoing Oy, Kuuhubb's management team
    engaged in a focused 90-day integration plan, designed to capitalize on
    synergies, evaluate costs, identify growth opportunities, re-deploy
    resources and human capital to capture value, and mitigate financial and
    operational risks. Kuuhubb management reported that all significant
    integration efforts had been successfully achieved.


--  On November 20, 2017, the Company announced that it had signed a term
    sheet to acquire Neybers, an interior design game where users can play
    with photo quality items from real brands. Neybers fits well with
    Kuuhubb's strategy of building a portfolio of female oriented niche
    lifestyle community and design applications. Neybers has a strong focus
    on esthetics and female user base with a 22 minute play session average
    - attributes that dovetail well with Kuuhubb's flagship app Recolor.

Performance Update:


--  Kuuhubb estimates gross revenue for October and November 2017 to be
    approximately US$4 million (Recolor & MyHospital total).


--  All financial results going forward will be reported in United States
    dollars.

About Kuuhubb

Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile video game applications. Its strategy is to create sustainable shareholder value through acquisitions of proven, yet underappreciated, assets with robust long-term growth potential. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on developing U.S. brand collaborations and Asian partnerships.

Cautionary Note Concerning Forward-Looking Information

This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to future revenue and development and growth of the Company's business) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, risks related to the growth strategy of the Company, the possibility that results from the Company's growth plans will not be consistent with the Company's expectations, the early stage of the Company's development, competition from companies in a number of industries, the ability of the Company to manage expansion and integrate acquisitions into its business, future business development of the Company and the other risks disclosed under the heading "Risk Factors" in the Company's annual information form dated October 30, 2017 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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.

Contacts:
Kuuhubb Inc.
Jouni Keränen - CEO
Office: +358 40 590 0919
jouni@kuuhubb.com

Bill Mitoulas
Investor Relations
Office: +1 (416) 479-9547
bill@kuuhubb.com

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