13 August 2026

Ethernity Networks Limited

("Ethernity" or the "Company")

Patent Monetisation Process Update

Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a supplier of data-processing semiconductor technology for networking appliances, is pleased to provide an update regarding the Company's patent-monetisation activities.

As highlighted in the Company's 2025 annual report and accounts ("2025 Results"), the Directors of Ethernity have been pursuing a process to monetise certain patents within the Company's intellectual property portfolio and have engaged an intellectual property monetisation brokerage firm to evaluate licencing opportunities for its patent portfolio. Based on initial feedback received as part of this process, the Board believes that a transaction, should it be successful, has the potential to generate upfront substantial licensing proceeds, together with potential additional licensing revenues over subsequent years.

The Company and its advisers have identified evidence indicating that products offered by multiple vendors within the rapidly growing AI infrastructure and telecommunications markets may use technology relevant to certain of the Company's patents. These vendors collectively represent a substantial proportion of the relevant market, which the Board believes may increase the potential commercial value of the Company's intellectual property portfolio.

The Company, together with its advisers, is continuing to assess the identified use of the relevant technology and determine the most appropriate strategy for protecting and monetising its intellectual property. This may include seeking to enter into licensing arrangements with relevant vendors or pursuing other commercial or legal avenues.

The process remains ongoing, and there can be no certainty that a transaction will be completed, as to its timing or terms, or that any proceeds will ultimately be received unless and until a definitive agreement is executed. The Board believes that the feedback received to date provides an initial indication of the potential value that may be realised from the patent-monetisation process, but any such value remains subject to further assessment, negotiation and execution risk.

Should the process result in the successful execution of a monetisation transaction, any resulting proceeds would strengthen the Company's financial position and provide it with greater flexibility to evaluate and pursue its next strategic and operational steps. As highlighted in the 2025 Results, the Company is currently extremely cash constrained and is carefully managing its creditors.  The Company's ability to continue as a going concern is likely to depend on successfully monetising the patent portfolio or securing alternative new revenue streams. 

The Company will provide further updates as appropriate.

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About Ethernity Networks

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative networking and security solutions on programmable hardware, enhancing telco/cloud infrastructure capacity. Its semiconductor logic enables advanced data processing for networking applications, alongside patented wireless access and fiber media controllers. Ethernity's solutions accelerate time-to-market and support the deployment of 5G over wireless and fiber infrastructure.