The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM, AUSTRALIA, NEW ZEALAND, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO BUY, ACQUIRE OR SUBSCRIBE FOR (OR THE SOLICITATION OF AN OFFER TO BUY, ACQUIRE OR SUBSCRIBE FOR) ORDINARY SHARES TO ANY PERSON WITH A REGISTERED ADDRESS IN, LOCATED IN, OR WHO IS A RESIDENT OF, THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL OR CONTRAVENE ANY REGISTRATION OR QUALIFICATION REQUIREMENTS UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

4 December 2024

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

Placing to raise £130,028

Ethernity Networks Limited (AIM: ENET.L) (OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances announces a placing (the "Placing") to raise £130,028 (gross) through the issue of 97,766,091 new ordinary shares of NIS 0.001 each ("Ordinary Shares") at an issue price of 0.133p per share (the "Issue Price"). Peterhouse Capital Limited ("Peterhouse") is acting as placing agent to the Placing. The Placing has not been underwritten.

Highlights

·     Placing to raise £130,028 through the issue of 97,766,091 new Ordinary Shares (the "Placing Shares") at the Issue Price.

·      David Levi, CEO, has subscribed for 4,887,218 Placing Shares.

·      Admission of the Placing Shares is expected to occur on or around 10 December 2024.

Background to, reasons for the Placing and use of proceeds

On 28 November 2024, the Company provided a business update. The Directors consider that it is appropriate to undertake the Placing at this time in order to provide additional working capital whilst discussions with potential customers progress.

Details of the Placing

The Company has resolved to issue 97,766,091 Placing Shares at the Issue Price raising gross proceeds of £130,028. The Placing Shares have been issued utilising the Company's existing authorities to issue new Ordinary Shares on a non-pre-emptive basis.

Director participation in the Placing

David Levi has subscribed for 4,887,218 Placing Shares at the Issue Price. Following admission of the Placing Shares to trading on AIM, David Levi will hold 36,704,616 Ordinary Shares, representing 3.67% of the Company's enlarged issued share capital.

Admission to trading

The Placing Shares are being issued pursuant to the Company's existing authorities to issue and allot new Ordinary Shares free of pre-emption rights. The Placing Shares will rank pari passu with the Company's existing Ordinary Shares. Application is being made for the admission of the 97,766,091 Placing Shares to trading on AIM ("Admission") and Admission is expected to occur at 8.00 a.m. on or around 10 December 2024.

Total voting rights

Following Admission, the Company's enlarged issued share capital will be 1,000,000,000 Ordinary Shares. The Company holds no Ordinary Shares in Treasury. This figure of 1,000,000,000 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

For further information, please contact:

About Ethernity (www.ethernitynet.com)

Ethernity Networks (AIM: ENET.L) provides innovative, comprehensive networking and security solutions on programmable hardware for accelerating telco/cloud networks. Ethernity's semiconductor logic offers complete Carrier Ethernet Switch Router data plane processing and control software with a rich set of networking features, robust security, and a wide range of virtual function accelerations to optimize telecommunications networks. Ethernity's complete solutions quickly adapt to customers' changing needs, improving time-to-market, and facilitating the deployment of 5G, edge computing, and Broadband Networks.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them