Major Contract Wins

ENGAGE XR Holdings Plc, a leading Metaverse / spatial computing technology company, is pleased to announce further progress on customer contracting, including the largest contract the Group has signed to date. The Group has signed a seven-figure contract with a large Middle East-based company in the education, training, and development sector. Working in partnership with PWC Middle East, ENGAGE XR is developing a private MetaWorld for the company to deliver language learning programmes and professional ongoing development.

Sally Jeffery, PwC's Global Education & Skills Practice Leader, commented: "At PwC Middle East, we are thrilled to collaborate with ENGAGE XR in creating a groundbreaking MetaWorld. This initiative represents a significant leap forward in harnessing the power of spatial computing technologies to revolutionise the education and professional development landscape. By integrating immersive learning experiences, we aim to unlock new potentials in language acquisition and continuous skill enhancement. This collaboration underscores our commitment to driving innovation and excellence in the education sector, marking a pivotal moment in our journey to redefine the future of learning."

In addition, the Group is pleased to have extended its relationship with a leading American Bank. Having previously signed a contract with the same bank in 2023 for employee onboarding via an event on the ENGAGE platform, the Group was delighted to enter into a further scope of work with the bank. This additional six-figure contract continues the work done on the ENGAGE platform by the bank to deliver employee onboarding, together with ongoing development of the platform being provided to the bank.

As previously announced, the last financial year was impacted by delays in signing some contracts and therefore some revenues the Group had hoped to be recognised in FY23 will now be recognised in FY24. The Group's sales pipeline continues to grow, and the Group continues to see strong demand in the education, training and development verticals.

David Whelan, CEO, ENGAGE XR, said: "The signing of our biggest ever contract underlines the progress we are making in the education, training and development verticals, It also extends our presence in the Middle East. Customers in these verticals are clearly willing to invest heavily in ENGAGE, and we expect education, training and development to be the primary driver of revenue this year. Our understanding of the needs of customers in these areas has accelerated during 2023, and we are better placed to target and win more business as a result. We are also pleased that our pipeline is beginning to convert again, after customers delayed signing contracts in the second half of last year.

"We also expect to see the benefits of our partnership with Lenovo during 2024. At CES earlier this month, we released ENGAGE on Lenovo's VRX headset with additional AI features and abilities, receiving positive feedback. We believe 2024 will see growing interest in spatial computing / metaverse services as Apple releases its Vision Pro headset in February and new devices are expected to be released from Sony, Samsung, Google, and Meta later this year. Overall we are excited at the opportunity before us and believe that the Group is well placed to take advantage of the increasing interest in spatial computing and the metaverse."