US Government Approves Aerospace Project

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances, provides an update on the $1.05m contract signed with a Tier 1 U.S.-based aerospace system products provider (the "Customer").

As previously disclosed, the $1.05m licensing deal with the Tier-1 U.S. aerospace vendor involves Ethernity delivering its silicon-tuned software to enable specific networking functionalities on the Customer's unique platform. As is customary for similar aerospace initiatives, the U.S. Government reviews and approves foreign suppliers who are delivering IP to such projects. We are now happy to update that the project has been granted U.S. Government approval, and will shortly move to the implementation phase, triggering immediate payment in respect of the milestones that have already been delivered by the Company, representing 40% of the contract value.