24 July 2025

Ethernity Networks Ltd

("Ethernity" or the "Company")

Notice of EGM and business update

Ethernity Networks Limited (AIM: ENET.L) (OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances, announces that a notice of an extraordinary general meeting of the Company (the "EGM") is being posted to shareholders shortly and provides a business update.

Notice of EGM

The EGM will be held at the offices of the Company at 3rd Floor Beit Golan, 1 Golan St. Corner HaNegev, Airport City 7019900, Israel at 11.00 a.m. Israel time (9.00 a.m. UK time) on 14 August 2025. The purpose of the EGM is to seek shareholder approval for an increase in the authorised share capital of the Company and for the disapplication of pre-emption rights on equity issues for cash. This authority is being sought to provide the Company with the headroom to allot the shares that would be issued on the exercise of the up to 3,636,363,366 warrants over ordinary shares in the Company outstanding with an exercise price of 0.022p, as well as provide flexibility to undertake a fundraise to progress the Company's ASIC strategy.

A copy of the EGM notice will be made available on the Company's website, www.ethernitynet.com.

Business update

Further to the Company's update announcement on 10 June 2025 and the further updates provided in its 2024 annual report and accounts, the Company is pleased to expand on the various opportunities that have been progressed by Ethernity.   

Progress with Existing Paying Customers

Long-standing OEM Customer

The Company announced in July 2025 that it has reached a milestone of one of its long-standing OEM customers shipping 1,000,000 products with Ethernity's Carrier Ethernet IP embedded. The Company has collaborated on a joint proposal with this OEM on the development of a new FPGA-based product for the OEM's clients. This solution would leverage Ethernity's proven and widely deployed technology. The OEM customer has indicated growing confidence in securing the business based on the proposal.

U.S. Tier-1 OEM Customer

The Company's leading U.S. Tier-1 OEM customer has now surpassed several thousand deployments of Remote OLT (RoLT) units containing Ethernity's IP, with approximately 40% of the total volume shipped in the last 12 months. This achievement meets the initial contracted volume threshold. As deployments continue, the Company anticipates securing recurring revenue beyond the original agreement.

The Customer has indicated that it intends to engage with the Company in discussions concerning the development of two next-generation RoLT platforms, which would incorporate additional functionality to be provided by Ethernity.

Progress with New Customer Engagements

New U.S RoLT OEM engagement

Following the submission of a commercial proposal, the Company is in active discussions with another leading Remote OLT vendor seeking to migrate their existing OLT design to Ethernity's PON technology. Technical evaluation and solution alignment are progressing positively.

New European RoLT OEM Customer

Following multiple meetings with a European OEM over the last two years, the Company has recently aligned with this possible customer on a technical proposal that leverages their existing platform to deliver a flexible, FPGA-based PON solution. Commercial terms have been agreed, and execution is now pending with the customer's final internal approval.

New Potential PON ASIC Collaboration

A major European semiconductor vendor is currently evaluating a potential ASIC fabrication based on Ethernity's PON technology, following a quotation request from a leading PON OEM system supplier. Technical and Commercial Discussions remain at an early stage, and the timing of execution is yet to be determined, however it demonstrates a need for Ethernity's IP for execution of variant ASICs for Broadband, Mobile and Carrier Ethernet market.

Whilst there can be no guarantees that these contracts will be signed, the Directors are pleased with the recent progress in commercial discussions.

Strategic Wireless Backhaul Opportunity

The Company strategy continues to be to initiate a groundbreaking, low-cost, high-performance ASSP project in the coming months. The Company continues to engage with a leading wireless backhaul OEM on various execution strategies, with a goal to converge on the best joint route for execution.  

David Levi, CEO of Ethernity Networks, commented: "We are pleased to report meaningful commercial progress across multiple potential licensing engagements based on our existing solution and technology, and growing interest in our PON and Carrier Ethernet solutions on top of the strategic wireless backhaul opportunity. As the industry continues its transition to open, flexible, and programmable access platforms, Ethernity is well-positioned to lead with our robust IP, proven deployment, and trusted customer relationships."

The Company will continue to update the market should these opportunities materialize into a contract.

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About Ethernity Networks

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative and comprehensive networking, security and PON semiconductor technology that enhances the capacity and efficiency of telco/cloud network infrastructure. Ethernity's silicon-proven logic provides advanced data processing functionality for various networking applications, alongside patented wireless access technology, patented routing technology and passive optical network (PON) controller. These are complemented by robust control software boasting a rich set of networking functions. Ethernity's technology adaptable solutions accelerate time-to-market and facilitate the deployment of 5G services over both wireless and fiber infrastructure.