Press Release

ModusLink Announces their New FaaS Product that Simplifies Global Merchandise Fulfillment

Smyrna, TN — May 12, 2022 — ModusLink announces the launch of their FaaS – Fulfillment as a Service, a product engineered to streamline the fulfillment process and reduce costs while improving the customer experience.

Fawaz Khalil, President and CEO of ModusLink, explained “FaaS delivers a complete array of fulfillment solutions that enable clients to enhance customer satisfaction and at the same time simplify fulfillment. And, because of our extensive network of fulfillment locations, we are able to offer very competitive rates and economical next-day delivery.”

FaaS provides the value and benefits of ModusLink’s access to local carriers which avoids expensive air freight costs and features the clarity of a single order management system: one IT API via one API infrastructure.  The resulting lower costs from improved partner management and integration mean that businesses of almost any size can more easily deliver the advantages of world-class customer service.

“We developed our FaaS system to streamline ‘local fulfillment services on a global scale’ for all of our current and future clients” noted Khalil. “Benefits to customers include lower integration costs, lower management costs, and lower freight rates. These features have the advantages of regular operational savings that will repeat again and again.”

ModusLink’s FaaS will enable organizations to provide extraordinary “Fulfillment as a Service” to meet global opportunities with the speed and economy of local attention.

About Steel Connect, Inc.

 Steel Connect, Inc. is a holding company whose wholly-owned subsidiary, ModusLink Corporation, serves the supply chain management markets.

ModusLink is an end-to-end global supply chain solutions and e-commerce provider serving clients in markets such as consumer electronics, communications, computing, software and retail. ModusLink designs and executes critical elements in its clients’ global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. These benefits are delivered through a combination of industry expertise, innovative service solutions, and integrated operations, proven business processes, an expansive global footprint and world-class technology. ModusLink also produces and licenses an entitlement management solution powered by its enterprise-class Poetic software, which offers a complete solution for activation, provisioning, entitlement subscription, and data collection from physical goods (connected products) and digital products. ModusLink has an integrated network of strategically located facilities in various countries, including numerous sites throughout North America, Europe and Asia.

 Forward-Looking Statements

 This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are not historical facts are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This release contains forward-looking statements pertaining to, but not limited to, information with respect to a proposed transaction between the Company and Steel Holdings. All statements other than statements of historical fact, including without limitation, those with respect to the Company’s goals, plans, expectations and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: challenges and risks arising from the IWCO Direct Disposal, including our reliance on the Supply Chain segment as our sole business in future periods; changes in our relationships with significant clients; fluctuations in demand for our products and services; our ability to achieve and sustain operating profitability; demand variability from clients without minimum purchase requirements; general economic conditions and public health crises (such as the ongoing COVID-19 pandemic); intense competition in our business segments; our ability to maintain adequate inventory levels; our ability to raise or access capital in the future; difficulties increasing operating efficiencies and effecting cost savings; loss of essential employees or an inability to recruit and retain personnel; the Company’s ability to execute on its business strategy and to achieve anticipated synergies and benefits from business acquisitions; risks inherent with conducting international operations, including our operations in Mainland China; increased competition and technological changes in the markets in which the Company competes; disruptions in or breaches of our technology systems; failure to settle disputes and litigation on terms favorable to the Company; the Company’s ability to preserve and monetize its net operating losses; changes in tax rates, laws or regulations; failure to maintain compliance with Nasdaq’s continued listing requirements; potential conflicts of interest arising from members of our board of directors’ interests in Steel Holdings and its affiliates; the Company’s ability to negotiate and consummate the proposed transaction with Steel Holdings; and potential adverse effects from changes in interest rates and the phase-out of LIBOR. For a detailed discussion of cautionary statements and risks that may affect the Company’s future results of operations and financial results, please refer to the Company’s filings with the SEC, including, but not limited to, the risk factors in the Company’s Quarterly Report on Form 10-Q filed with the SEC on March 17, 2022. These filings are available on the Company’s Investor Relations website under the “SEC Filings” tab.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

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