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Kooth, the UK's leading digital mental health platform, announces that it has agreed the terms of a significant contract with the State of Pennsylvania, valued at $3 million in its pilot year (the "Contract").

The Contract will see Kooth provide its platform to 30 school districts within Pennsylvania, encompassing a school population of 150,000 students. The Contract will run initially for the academic school year and, if the pilot is successful, could be extended to include more of the State's 500 school districts. The Contract, expected to be formalised in the coming days, received bipartisan support in the State legislature and will see Kooth report on both the therapeutic and economic impact of its digital platform in providing early intervention and responsive support to the school population.

To support the Contract, mobilisation has already begun and Kooth is hiring dedicated US staff, including counsellors, technology specialists and business development personnel. Kooth will also set up a dedicated US office, based in Pennsylvania, as it looks to increase its presence and scale in the US. In addition to its work with school students, Kooth is gaining early traction in supporting the mental health of university students, with a number of discussions ongoing, including a separate pilot which is expected to begin shortly at Pikeville University in Kentucky.

Approximately one third of the Pennsylvania Contract value is expected to be booked as revenue in the 2022 financial year with the remainder in 2023 and, accordingly, the Group remains confident of delivering revenue for 2022 within the range of market expectations. The win is expected to have a neutral impact on EBITDA over the life of the pilot contract as the Group makes new investments in strategic recruiting to build its US team and accelerate further growth in the US.

The Company continues to believe that the US expansion opportunity is significant and a key part of its future growth strategy. An estimated 20 million children in the US currently present with a mental health disorder and, according to the US Department of Health and Human Services, even before the COVID-19 pandemic, one in five US children between the ages of three and 17 years old had a mental, emotional or behavioural disorder. The Centers of Disease Control and Prevention have estimated that currently only about 20% of these children receive appropriate help from mental health professionals.

Tim Barker, Chief Executive Officer of Kooth, said :

"This government-funded contract is our first major contract win in the US and is an exciting opportunity to deliver personalised, effective mental health to support an entire school community in the United States. At the time of our IPO in September 2020 we highlighted US expansion as a key part of our growth strategy. This contract, along with building our US team, shows swift progress against this strategy. We look forward to working with the State of Pennsylvania to help support the mental health of those students within this pilot by providing early and fast help to professional support, peer support, and a wide range of therapeutic content and activities"

Aaron Kaufer, Pennsylvania State Representative, 120th District, said:

"We are delighted that 150,000 students in the Commonwealth of Pennsylvania will have access to mental health support for this school year via Kooth. We look forward to partnering with them and replicating their two decades of success here in the Commonwealth. We all know mental health is one of the most pressing issues we face as a society, and we look forward to working with Kooth to support our young people at a critical point in their lives."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person responsible for this announcement is Sanjay Jawa, CFO.

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About Kooth plc:

Kooth (AIM:KOO) is the UK's leading digital mental health platform. Our mission is to provide accessible and safe spaces for everyone to achieve better mental health. Our platform is clinically robust and accredited to provide a range of therapeutic support and interventions. All our services are predicated on easy access to make early intervention and prevention a reality.

Our three services are:

• Kooth: for children and young persons
• Kooth: for Adults
• Kooth Work: for employees

Kooth is a fully safeguarded and pre-moderated community with a library of peer and professional created content, alongside access to experienced online counsellors. There are no thresholds for support and no waiting lists. Currently, Kooth sees over 4,000 logins a day.

For adults, Kooth operates across distinct locations and serves specific cohorts, including parents, teachers, victims of crime, and those who have suffered from or continue to experience domestic violence. It is also offered as a benefit by a number of corporate organisations delivering anonymous digital mental health support services to employees.

Kooth is the only digital mental health provider to hold a UK-wide accreditation from the British Association of Counselling and Psychotherapy (BACP).

In 2021, Kooth was named 'Best Newcomer' at the European Mediscience Awards, winner in the category of 'Tech for Good' at the UK Tech Awards and recognised as the 'HealthTech Pioneer of the Year' at the UK Business Tech Awards for its role in 'Supporting the Nation's Mental Health'.