Update on progress with PON strategy

10 June 2025

ETHERNITY NETWORKS LIMITED

("Ethernity" or the "Company")

Update on progress with short-and long-term PON strategy

Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing and Passive Optical Network ("PON") semiconductor technology for networking appliances, provides a progress update on its near and long-term term strategy further to its announcement of 1 May 2025 (the "Fundraise Announcement").

PON functionality is crucial for Fibre-To-The-Premises ("FTTP") deployments because it provides a cost effective and scalable way to deliver high-speed internet to multiple users from a single central point fibre. As highlighted in the Fundraise Announcement, the Company believes that the inclusion of PON functionality in its planned Application-Specific Standard Product ("ASSP") solution that will be available for the global Mobile, Access and Broadband market industry, will significantly strengthen Ethernity's ability to re-engage with OEMs, for the sale of its existing integrated FPGA-based UEP solution for the PON market, since Ethernity's FPGA-based PON solution offers a strategic bridge to the planned ASSP solution unlocking immediate revenue potential and early customer engagement.

It enables OEMs to begin integration and deployment today, without waiting for ASIC silicon availability, while validating use cases and reducing risk ahead of ASIC rollout. This early adoption should build market traction and strengthen strategic relationships, as well as ensure a smooth migration path to the high-volume ASIC in due course.

By capturing near-term opportunities and reducing time to market, Ethernity hopes to be able to demonstrate its ability to monetize the PON offering while laying the groundwork for scalable, long-term growth through conversion of the deployed FPGA design into a commercial ASSP.

The Company held pre-scheduled meetings with several leading PON vendors at the ANGA COM fibre access exhibition and conference in Cologne, Germany last week, and is pleased to report promising levels of interest in Ethernity's planned ASSP offering. Based on these discussions, the Directors of Ethernity believe this engagement could lead to near-term orders for the Company's existing integrated FPGA-based UEP solution, and lead to longer term adoption of Ethernity's forthcoming ASSP once available.

The addition of PON functionality positions Ethernity to address a wide range of vertical markets, including:

· wireless backhaul, utilizing the Company's patented Layer-1 wireless link bonding technology;

· carrier ethernet switch/router applications; and

· remote and centralized PON OLT deployments.

With ongoing discussions progressing around a potential co-funding arrangement with a leading wireless backhaul vendor for the planned ASSP development, including efforts to tailor the business case to align with that vendor's operational needs, the Company believes this expanded capability further reinforces its strategic transformation into a semiconductor-focused business and enhances its positioning across the broadband and access infrastructure markets.

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About Ethernity Networks

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative, comprehensive networking and security solutions on programmable hardware, enhancing telco/cloud network infrastructure capacity. Ethernity's semiconductor logic offers data processing functionality for various networking applications, alongside patented wireless access technology and fiber access media controllers, all equipped with control software boasting a rich set of networking features. Ethernity's solutions swiftly adapt to customers' evolving needs, accelerating time-to-market and facilitating the deployment of 5G over wireless and fiber infrastructure.