Circ re. Related Party Transaction

Further to conditional offering of 6,635,257 new ordinary shares of 1.89 pence each in the capital of the Company (the "New Ordinary Shares") to raise gross proceeds of approximately £10.55 million (the "Fundraising"), announced on 27 September 2023, the Company announces that the circular referred to in that announcement is being published today (the "Circular"). The Circular will be available on the Company's website www.dialight.com.

As described in the announcement of 27 September 2023, the participation in the Fundraising by Schroder Investment Management ("Schroder") constitutes a related party transaction requiring shareholder approval in accordance with Listing Rule 11.1.7R. Accordingly, settlement of the New Ordinary Shares and Admission is conditional on approval by the Company's shareholders at a general meeting.

The Circular contains further details of the proposed related party transaction (within the meaning of Listing Rule 11.1.4R) and will be posted to shareholders that have elected to receive hard copies of shareholder documentation as soon as practicable. The Circular also contains a notice convening a general meeting to be held at 9.30 a.m. on 27 October 2023 at the offices of Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square, London, E1 6PW. Completion of the Fundraising will be conditional upon receiving shareholder approval to the related party transaction proposal at the General Meeting.

The expected timetable of principal events in relation to the General Meeting is as follows:

Event Expected time/date

Deadline for receipt of Form of Proxy and CREST voting instructions 9.30 a.m. on 25 October 2023

Voting Record Time 6.30 p.m. on 25 October 2023

General Meeting 9.30 a.m. on 27 October 2023

Admission and Settlement 8.00 a.m. on 30 October 2023

A copy of the Circular has been submitted to the National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Capitalised terms used but not defined in this announcement have the same meaning as set out in the announcement of the Results of Placing announcement released by the Company on 27 September 2023.