Update re. U.S 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 $1.05 million 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.

The Company obtained U.S Government approval for the project in September 2024, and over the course of six months, the Company has successfully completed all scheduled deliveries focused on porting Ethernity's existing silicon tuned software onto the customer's platform, and has invoiced $890,000 to date. Additionally, the Company is pleased to have received the highest performance ratings across all aspects of the contract so far, including technical support, adherence to scheduled deliveries, and overall management.

It is anticipated that the contract will be extended by an additional $290,000 to allocate dedicated development resources for additional functionalities beyond the original scope, with implementation planned over the next three months. Combined with the remaining $160,000 from the original contract, the additional $290,000 will bring the total anticipated collection to $450,000 in the near term. The Company anticipates further revenue from the Customer during H2 2025.