1m unit shipment milestone with existing customer

Reach - non-regulatory announcement

17 July 2025

Ethernity Networks Ltd

("Ethernity" or the "Company")

Ethernity reaches one million unit cumulative shipment milestone with a leading customer for carrier ethernet switch engine

Ethernity Networks Ltd (AIM: ENET), a leading supplier of data processing and networking technology for telecom and enterprise markets, is pleased to announce that it has reached a significant commercial milestone: the cumulative shipment of one million units of its Carrier Ethernet Switch and Traffic Manager engine IP (the "Carrier Ethernet Engine") to a single longstanding customer (the "Customer"), under a recurring royalty model.

This milestone, achieved over several years of continuous engagement with the Customer, reflects the successful and sustained deployment of Ethernity's Carrier Ethernet Engine initially delivered on FPGA and subsequently ported into a custom ASIC by the Customer, with ongoing support from the Company. The IP has been extensively integrated across the Customer's Ethernet access CPE product portfolio and serves as the main engine embedded into a custom ASIC within the product portfolio.

Carrier Ethernet is the standardized technology defined by the Metro Ethernet Forum adopted by telecommunications operators to deliver high-performance, scalable and reliable transport services across metro, access and aggregation networks. It enables the efficient delivery of voice, video and data services with the quality, resilience and management capabilities required for carrier-grade infrastructure. A recent report estimates that the global market for Carrier Ethernet Access Devices was US$18.3 Billion in 2024 and is projected to reach US$21.5 Billion by 2030, growing at a CAGR of 2.8% from 2024 to 20301.

David Levi, CEO of Ethernity Networks, commented: "This cumulative achievement is a testament to the long-term value and reliability of our Carrier Ethernet Switch technology. It highlights the strength of our relationship with a leading Customer and reinforces our position as a trusted provider of programmable networking solutions in high-volume, mission-critical environments.

"This one million-unit milestone further strengthens Ethernity's market positioning by validating the robustness and scalability of its data processing technology. In addition to the Carrier Ethernet Engine, Ethernity's current portfolio includes advanced features such as its patented routing engine, patented wireless Layer 1 bonding, deep buffering, security offload engine and a unique PON capability.

"While the historic business model was based on IP licensing, the Company is now planning a transition to an ASSP (Application-Specific Standard Product) strategy, bringing these advanced capabilities to the global market through Ethernity's own silicon offerings."

1 Carrier Ethernet Access Devices - Global Strategic Business Report, Global Industry Analysts, Inc., July 2025

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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.

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