6 June 2023

ETHERNITY NETWORKS LTD.

("Ethernity" or the "Company")

Fibre controller business update

Ethernity Networks (AIM: ENET.L; OTCQB: ENETF), a leading supplier of data processing semiconductor technology for networking appliances, is pleased to provide an update on the fulfilment of its fibre controller contracts, announced on 18 October 2021 and 20 September 2022.

Following discussions with its Field Programmable Gate Arrays (FPGA) supplier, the Company has secured supply of the components required to fulfil the contracted orders and deliveries as per the contracts signed for the current year. The secured supply of components will enable the Company to generate revenues of $3.3 million in the current financial year which equals almost 80% of the pipeline from these contracts in the current financial year.

Ethernity plans to continue working with new customers and with the existing customer to secure and deliver beyond this amount for the current financial year.

The Passive Optical Networking (PON) products, including XGS-PON Optical Line Termination (OLT) and Fibre-to-the Room (FTTR), were successfully factory tested, and the Company is progressing with the existing customer on deployment. The Company is engaged in further testing and discussions with other major OEMs for its PON fibre controller devices and PON systems over and above the current signed contracts. As a result, the Company will continue to target sales of licensing fees for its PON fibre controller System-on-Chip (SoC) and sales of its PON fibre controller OLT system in various configurations.

David Levi, CEO of Ethernity Networks, commented: "We're pleased that we have concluded a process to secure components to meet the planned, contracted deliveries."

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About Ethernity ( www.ethernitynet.com )

Ethernity Networks (AIM: ENET.L OTCQB: ENETF) provides innovative, comprehensive networking and security solutions on programmable hardware that increase telco/cloud network infrastructure capacity. Ethernity's semiconductor logic offers data processing functionality for different networking applications, innovative patented wireless access technology, and fibre access media controllers, all equipped with control software with a rich set of networking features. Ethernity's solutions quickly adapt to customers' changing needs, improving time-to-market, and facilitating the deployment of 5G over wireless and fibre infrastructure.