DIRTT Provides Operational Update and Announces Director Resignation

CALGARY, ALBERTA--(Marketwired - Oct. 6, 2014) - DIRTT Environmental Solutions ("DIRTT" or the "Company") (TSX:DRT), a leading provider of prefabricated interior construction solutions, provides the following operational update.

In June 2014, the Company announced it had received notice of award for a project valued in excess of US$30 million to the Company and its Distribution Partner Agile OFIS (Agile) of Houston, Texas. The project timelines have accelerated slightly and DIRTT now anticipates recognizing approximately 10% of the contract project as revenue in the fourth quarter of 2014. As previously stated, most of the revenue from the project will still be recognized in 2015.

Furthermore, as disclosed in the Company's results for the second quarter of 2014, following adverse weather conditions that negatively impacted sales volumes in April, monthly revenue bounced back as sales volume returned to anticipated levels. This trend continued through the third quarter of 2014 and early sales forecast data for the month of October suggests a positive start to the fourth quarter of 2014.

"We expect a combination of solid industry fundamentals and larger contract wins to drive growth for DIRTT into 2015," said Mogens Smed, CEO of DIRTT. "As a Company we are continuing to look for ways to support that growth while providing ever higher levels of service."

DIRTT also announces that effective October 3, 2014, Rowland Fleming has resigned as a member of the board of directors of the Company to focus on other interests. The Board wishes Mr. Fleming the very best in his future endeavours and thanks him for his contributions to the Board and the Company. Mr. Fleming has been a member of the Board since August 2007.

About DIRTT

DIRTT Environmental Solutions uses its proprietary 3D software to design, manufacture and install fully customized prefabricated interiors. Our customers in the corporate, government, education and healthcare sectors benefit from DIRTT's precise design and costing; rapid lead times with the highest levels of customization and flexibility; and faster, cleaner construction.

DIRTT manufacturing facilities are in Phoenix, Savannah, Kelowna and Calgary. Our teams support 92 Distribution Partners throughout North America, the Middle East and Asia. DIRTT trades on the Toronto Stock Exchange under the symbol "DRT."

To find out more about DIRTT (TSX:DRT) please visit our website dirtt.net or contact us at ir@dirtt.net.

Forward-Looking Statements

Certain information and statements contained in this news release constitute "forward-looking information" and "forward-looking statements" (collectively, "Forward-Looking Information") as defined under applicable Canadian securities laws and the Company hereby cautions investors about important factors that could cause the Company's actual results or outcomes to differ materially from those projected in any Forward-Looking Information contained in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "believes", "estimated", "intends", "plans", "projection" and "outlook"), are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such Forward-Looking Information.

In particular and without limitation, this news release contains Forward-Looking Information pertaining to the following: comments with respect to the Company's revenue, objectives and priorities for 2014 and beyond; project timetables; its positive October 2014 sales forecast; its growth strategies and opportunities; and its outlook for its operations and the Canadian, US and international economies, and in particular, the US construction industry.

With respect to Forward-Looking Information contained in this news release, assumptions have been made regarding the Company, among other things:

• its ability to manage its growth;
• competition in its industry;
• its ability to enhance current products and develop and introduce new products;
• its ability to obtain components and products from suppliers on a timely basis and on favourable terms;
• its ability to obtain qualified staff and equipment in a timely and cost-efficient manner;
• the regulatory framework governing taxes in Canada and the US and any other jurisdictions in which the Company may conduct its business in the future;
• future development plans for its assets unfolding as currently envisioned;
• future capital expenditures to be made by the Company;
• future sources of funding for its capital program;
• the impact of increasing competition on the Company; and
• its success in identifying risks to its business and managing the risks mentioned below.

The Company's actual results or outcomes could differ materially from those expressed in the Forward-Looking Information as a result of the risks normally encountered in its industry such as:

• maintaining and managing growth;
• history of losses;
• risks related to global financial crisis;
• risks related to new technology;
• competition risks;
• operating results and financial condition fluctuations on a quarterly and annual basis;
• risks related to intellectual property;
• risks related to additional capital requirements;
• customer base and market acceptance;
• software and product defects and design risks;
• availability of key supplies;
• dependence on key personnel and consultants;
• commodity price risk;
• risks related to restricted covenants;
• credit risk;
• the effect of government regulation;
• risks related to international expansion;
• risks related to physical facilities;
• legal risks;
• foreign currency and fiscal matters;
• risks related to future acquisitions;
• risks related to Forward-Looking Information;
• reliance on third parties; and
• conflicts of interest.

Since actual results or outcomes could differ materially from those expressed in the Forward-Looking Information provided by or on behalf of the Company, investors and others should not place undue reliance on any such Forward-Looking Information.

Furthermore, certain information and statements contained in this news release constitute "financial outlook" as defined under applicable Canadian securities laws. Financial outlook provides information as to management's expectation as to DIRTT financial performance. Readers are cautioned that the financial outlook may not be appropriate for other purposes. The Company's expected results are sensitive to fluctuations in the business environment and may vary accordingly.

DIRTT cautions that the foregoing lists of factors are not exhaustive. Further, Forward-Looking Information is made as of the date hereof, and the Company undertakes no obligation to update Forward-Looking Information to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by applicable Canadian securities laws. New factors emerge from time to time, and it is not possible for DIRTT's management to predict all of these factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in Forward-Looking Information. No assurance can be given that these expectations will prove to be correct and such Forward-Looking Information contained in this news release should not be unduly relied upon. In addition, this news release may contain Forward-Looking Information attributed to third party industry sources.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements, management's discussion and analysis and annual information form for the 12 months ended December 31, 2013, all of which are available at www.sedar.com.