Contract Update

EnSilica, a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), is pleased to announce that first royalty payments have been triggered and an extended royalty agreement has been signed with an existing satellite service provider customer (the 'Customer').

In 2021, EnSilica was selected by the Customer to support the development of a next-generation satellite payload ASIC, from which the Company is beginning to receive royalty payments (the 'Agreement').

In addition to the Agreement, EnSilica will receive additional monthly royalty payments for each satellite in operational service using the ASIC.

The total value of the expanded agreement is estimated to be worth c.US$28m over the next 10 years (previously estimated to be US$15m royalties over 5 years).

Ian Lankshear, Chief Executive Officer of EnSilica, commented:

"We are very pleased to reach this milestone, which is the result of over three years of meticulous research, development and testing, and I'm incredibly proud of what our team has done to get to this stage.

EnSilica now has five chips in the supply phase generating recurring revenues and twelve in the design phase, which represents a significant financial milestone for the Company and underpinning our ongoing confidence in the business across the short and long term."