Desert Control AS

Regulatory Filings • Apr 9, 2025

Desert Control Reports No Material Impact from U.S. Trade Tariffs

Desert Control Reports No Material Impact from U.S. Trade Tariffs

Sandnes, Norway, 9 April 2025 - Desert Control (DSRT), an agri-tech company

providing solutions for soil and water conservation, listed on Euronext Growth

Oslo, reports that the recently announced U.S. trade tariffs on goods from

Norway do not currently have any material impact on the company's operations,

value chain, or financial outlook.

Following recent policy announcements by the U.S. administration-to implement a

16% import tariff on Norwegian goods effective April 9, 2025-Desert Control has

conducted an internal review to assess both the direct implications of this

measure and the broader potential impact of recent U.S. trade actions. Based on

current information and the company's operational structure, Desert Control does

not foresee any material effect on its U.S. operations, delivery capabilities,

or supply chain at this time.

Desert Control operates in the United States through its wholly owned

subsidiary, Desert Control Americas Inc., and serves the U.S. market through a

fully domestic value chain. This includes sourcing raw materials, local project

execution, and in-market manufacturing of Desert Control's proprietary mobile

production systems for soil treatment.

"Our U.S. operations are structurally embedded within the American market.

Inputs for client deliveries are sourced locally, and manufacturing for the U.S.

is done in the U.S.," said Marty Weems, Managing Director at Desert Control

Americas Inc.

Key Mitigating Factors

· Localized U.S. Operations: Desert Control's projects in the U.S. are

executed entirely through its American subsidiary. The complete value chain-from

production to delivery-is embedded within the United States, minimizing exposure

to international trade restrictions.

· Local Sourcing for U.S. Client Deliveries: Desert Control's soil treatment

programs for U.S. clients use domestic raw materials and inputs. The company

does not currently export materials or inputs from Norway that would fall under

the new tariffs' scope.

· Limited Exposure to Affected Trade Categories: The announced tariff measures

primarily apply to physical goods. Services such as digital support, consulting,

and technology deployment remain outside the scope of current trade actions.

· U.S.-Based Manufacturing of Production Units: Mobile production systems for

the U.S. market are built locally and are, therefore, not directly subject to

import tariffs. While the units are manufactured in the United States, certain

components may have international origins or be affected by broader market

pricing dynamics. These inputs represent a minor share of total unit

manufacturing costs, and any such effects are not expected to have a material

financial impact.

"Our operating model is resilient and built for agility," said Ole Kristian

Sivertsen, CEO of Desert Control. "We're well-positioned to respond to evolving

market conditions while safeguarding operational continuity, cost stability, and

client outcomes."

Desert Control continues to monitor trade and policy developments closely.

Should the scope of current measures evolve or extend to additional areas, the

company is positioned to adapt in a manner that supports uninterrupted service,

operational resilience, and compliance with relevant regulations.

For more information, please contact:

Ole Kristian Sivertsen

CEO, Desert Control

Email: oks@desertcontrol.com

Mobile (NOR): +47 957 77 777

Mobile (USA): +1 650 643 6136

Cautionary Note:

Disclaimer related to forward-looking statements.

This release contains forward-looking information and statements relating to the

business, performance, and items that may be interpreted to impact the results

of Desert Control and/or the industry and markets in which Desert Control

operates.

Forward-looking statements are statements that are not historical facts and may

be identified by words such as "aims," "anticipates," "believes," "estimates,"

"expects," "foresees," "intends," "plans," "predicts," "projects," "targets,"

and similar expressions. Such forward-looking statements are based on current

expectations, estimates, and projections, reflect current views concerning

future events, and are subject to risks, uncertainties, and assumptions, and may

be subject to change without notice. Forward-looking statements are not

guarantees of any future performance, and risks, uncertainties, and other

important factors could cause the actual business, performance, results, or the

industry and markets in which Desert Control operates to differ materially from

the statements expressed or implied in this release by such forward-looking

statements.

No representation is made that any forward-looking statements or forecasts will

come to pass or that any forecasted performance, capacities, or results will be

achieved. Readers are cautioned not to place any undue reliance on any forward

-looking statements.

About Desert Control:

Desert Control develops innovative solutions to enhance soil health, conserve

water, and promote ecosystem resilience. The company's mission is to combat

desertification, soil degradation, and water scarcity. Our patented Liquid

Natural Clay (LNC) transforms sandy, fast-draining soils to retain water and

nutrients, improving soil health, crop yields, and ecosystem vitality while

conserving water. Desert Control provides customized solutions to strengthen

sustainability, profitability, and prosperity for agriculture, forests, and

green landscapes. In collaboration with partners and clients, we aim to preserve

natural resources, restore biodiversity, enhance food security, and ensure a

climate-resilient future.

For more information, visit https://www.desertcontrol.com