ADISYN LTD — Capital/Financing Update 2024

Jul 14, 2024

ASX Announcement 15 July 2024

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ADISYN ANNOUNCES STRATEGIC COLLABORATION WITH 2D GENERATION TO ADVANCE AI AND SEMICONDUCTOR TECHNOLOGY

Highlights:

• Collabora�on with leading semiconductor IP business 2D Genera�on to generate transforma�onal opportuni�es in the AI space, leveraging AI1's learnings in data centres and cybersecurity.

• 2D Genera�on is developing applica�ons to enable the next genera�on of high-performance, energy-efficient semiconductor solu�ons for AI and datacentres

• 2D Genera�on is a founding partner in the EU's Connec�ng Chips Joint Undertaking

• Research and innova�on partners include NVIDIA, IMEC, Valeo, Applied Materials, NXP and Unity.

Adisyn Ltd (ASX: AI1) (“ Adisyn ” or the “ Company ”) has entered into a binding collabora�on agreement (“ Collabora�on Agreement ”) with 2D Genera�on Ltd, a prominent interna�onal semiconductor IP business incorporated in Israel (“ 2D Genera�on ”). This partnership aims to generate transforma�onal opportuni�es in the AI space, leveraging Adisyn’s exper�se in data centre management, managed IT services, and cybersecurity, alongside 2D Genera�on’s industry-leading capabili�es in developing next-genera�on AI semiconductor solu�ons.

Driving AI and Semiconductor Innova�on

semiconductor solu�ons crucial for AI and data centres. 2D Genera�on, renowned globally for its intellectual property innova�ons in semiconductors that enhance performance enabling genera�ve AI and significant data centre efficiencies, is also a founding partner in the EU's Connec�ng Chips Joint Undertaking, reflec�ng its commitment to driving semiconductor advancements.

The Objec�ves of the Collabora�on

The applica�ons of the jointly developed technologies will align with AI1’s dual track strategy of AI enablement and advanced data centre and cyber security solu�ons.

The material terms of the binding Collabora�on Agreement are as follows:

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1. Innova�ve AI Chips: The partnership will focus on crea�ng intellectual property for electronic photonic power and systems on chips (SoC) and their integra�on into systems in package (SiP) modules.

2. High-Performance Compu�ng: Applica�ons will target AI, data centres, high-performance compu�ng, and other digital industries, including cybersecurity.

3. Environmental Impact: Addressing the scalability limita�ons and massive energy demands of semiconductors to reduce societal and environmental costs.

4. of the collabora�on strategy going forward.

5. The par�es will mutually fund the costs of developing the joint ac�on plan and the collabora�on. Adisyn does not an�cipate its contribu�on to these costs to be material at this stage. Further, Adisyn an�cipates that the ini�al revenues from the Collabora�on will be nominal at this stage, as is usually the case at the start of collabora�ons of this nature.

6. The intellectual property developed from the ac�on plan and the collabora�on will be owned solely by 2D Genera�on with the right of assignment to Adisyn for commercialisa�on on terms yet to be formalised.

7. The term of the Collabora�on Agreement is ongoing un�l terminated in wri�ng by either party.

and any further related agreements.

'Moore’s Law and Its Challenges

‘Moore’s Law states that the speed and capability of computers can be expected to double every two years, but it is facing significant challenges as semiconductors approach scalability limits. In addi�on, the massive energy demands required for data storage and processing are genera�ng substan�al costs for society and the environment. The collabora�on between Adisyn and 2D Genera�on aims to develop and refine Adisyn's overall ar�ficial intelligence strategy and priori�es, with a strong focus on energy efficient solu�ons for data centres and cybersecurity.

“The collabora�on between Adisyn and 2D Genera�on marks a pivotal step in advancing AI and semiconductor technology, promising to deliver innova�ve solu�ons for data centres and beyond. This collabora�on also underscores the cri�cal role of semiconductors in the global economy and their poten�al for enabling sustainable solu�ons” said Adisyn Managing Director Blake Burton.

The Broader AI and Semiconductor Market

The semiconductor industry is at the heart of the ongoing technological revolu�on, driven by AI advancements. According to a PwC report, the AI market is expected to reach $15.7 trillion by 2030, with an annual growth rate of 26.4% between 2020 and 2024. This growth underscores the importance of semiconductors in enabling AI technologies.

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In 2020, the US invested $23.2 billion in AI research and development, with China following at $16.6 billion. The EU has also set an ambi�ous goal of inves�ng €20 billion annually in AI over the next decade. The global AI chip market is projected to grow from $10.1 billion in 2020 to $253 billion by 2030, with a compound annual growth rate of 35%.

Looking forward

Shane Wee, AI1’s Chairman said “our interac�ons with the 2D Genera�on team to date have provided a massive insight into the opportuni�es that cu�ng edge AI hardware and so�ware offer to the future of datacentres and cybersecurity defence industries. The collabora�on has only just begun and 2D Genera�on’s contribu�ons enabled specifically by the knowledge gained from their industry partners par�cularly through the Connec�ngChips ini�a�ve are seismic.”

Founder and CEO of 2D Genera�on, Arye Kohavi, agrees sta�ng “semiconductors are reaching a cri�cal juncture where processing power cannot keep up with developments in AI and the corresponding growth in data storage and manipula�on requirements. Together with AI1 and our other collabora�on partners including IMEC and our Connec�ngChips partners Nvidia, Valeo, AT&S among others, we are dedicated to inspiring the next leap in compu�ng.”

-ENDS-

This announcement has been approved for release by the Board of Adisyn Ltd.

Further Information:

Blake Burton Managing Director, Adisyn investors@adisyn.com.au 1300 331 888

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References

• (h�ps://www.pwc.com/gx/en/issues/analy�cs/assets/pwc-ai-analysis-sizing-the-prize-report.pdf).

Solu�on, By Technology, By End Use, By Region, And Segment Forecasts, 2020 - 2027." (h�ps://www.grandviewresearch.com/industry-analysis/ar�ficial-intelligence-ai-market).

1. McKinsey & Company. "Global AI Survey: AI proves its worth, but few scale impact." (h�ps://www.mckinsey.com/business-func�ons/mckinsey-analy�cs/our-insights/global-ai-survey-aiproves-its-worth-but-few-scale-impact).

2. Allied Market Research. "AI Chip Market by Chip Type, Applica�on, Technology, Industry Ver�cal, and Region: Global Opportunity Analysis and Industry Forecast, 2021-2030." (h�ps://www.alliedmarketresearch.com/AI-chip-market).

3. Semiconductor Industry Associa�on. "2020 State of the U.S. Semiconductor Industry." (h�ps://www.semiconductors.org/2020-state-of-the-u-s-semiconductor-industry/).

About 2D Genera�on

2D Genera�on is an Israeli high-tech company specialising in graphene-based solu�ons for the semiconductor industry. Founded by experienced entrepreneurs and scien�sts, the company is dedicated to overcoming current technological limita�ons by developing faster, stronger, and more energy-efficient computer processing solu�ons. These advancements will support the next genera�on of AI, data storage, telecommunica�ons, cybersecurity, mobile devices, and more.

About Adisyn

Adisyn (ASX: AI1) is a provider of managed technology services and solu�ons, primarily targe�ng the SME market. The company aims to be the preferred sovereign provider for SMEs in the Australian defence industry supply chain. Adisyn’s offerings include a range of solu�ons tailored to this growing market segment, leveraging internal capabili�es and strategic partnerships, par�cularly in cybersecurity and AI.

Forward-looking statements:

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of Adisyn Ltd are, or may be, forward-looking statements. Such statements relate to future events and expectations and as such, involve known and unknown risks and uncertainties. These forward-looking statements are not guarantees or predictions of future performance and involve known and

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unknown risks, uncertainties, and other factors, many of which are beyond the Company's control, and which may cause actual results to differ materially from those expressed in the statements contained in this release.

The Company cautions shareholders and prospective shareholders not to put undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this announcement. The Company disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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