VECTION TECHNOLOGIES LTD

15 November 2024, Australia

ASX RELEASE

$0.5m AI DELL ALGHO APPLIANCE SALE

Vection Technologies Ltd (ASX:VR1, OTC:VCTNY), ("Vection" or the "Company"), the INTEGRATED XR[Ò] company, is pleased to announce that The Digital Box S.p.A. (“TDB”) has been awarded a $0.5m Artificial Intelligence (“AI”) Dell Algho Appliance software contract to RCM Italia s.r.l., with the final client being a leading global company specialising in integrated railway solutions.

On 29 August 2024, Vection announced the proposed acquisition of TDB, a generative Artificial Intelligence (“AI”) company. The acquisition is on track to be settled during Q2 FY25.

HIGHLIGHTS:

Further $0.5m AI Dell Algho Appliance sale.
AI-driven Algho platform supports maintenance processes with generative AI.
Contract to generate recurring revenue, including $0.4m in 2025, with 10% annual fees of $50k starting in 2026.
The AI Dell Algho Appliance leverages TDB's AI technology to enhance data processing and privacy.
Algho AI is the proprietary artificial intelligence solution developed by TDB.
Vection announced the proposed acquisition of generative AI company TDB on 29 August 2024.

OVERVIEW:

TDB, in collaboration with RCM Italia, has successfully delivered the Dell Algho Appliance to a leading global railway company dedicated to sustainable and connected mobility. This implementation enables advanced maintenance processes backed by the Algho AI platform. The platform is designed to improve document management and achieve a response accuracy of 95% while ensuring high privacy standards.

This AI-powered Dell Algho Appliance contract follows the initial sale of $0.5 million announced on October 21. It is a testament to the increasing market validation of Vection's AI solutions. By leveraging TDB’s generative AI technology, Vection is well-positioned to impact various industries significantly. This highlights the TDB acquisition's long-term value and the Algho platform's effectiveness for addressing complex enterprise needs.

The recent acquisition of TDB has been crucial in enhancing Vection's capabilities in artificial intelligence. With TDB's generative AI technology, Vection can now provide improved, scalable solutions that deliver added value to enterprise clients across different sectors. This acquisition strengthens Vection's market position and emphasises its commitment to delivering cutting-edge AI solutions to meet complex operational demands and support sustainable, data-driven transformations.

Gianmarco Biagi, Managing Director of Vection said, “ This deployment highlights the transformative potential of Vection’s AI solutions and emphasises the strategic value of our recent acquisition of TDB. The Algho Appliance, developed in collaboration with Dell, enhances our client’s infrastructure and sets a new standard in

VECTION TECHNOLOGIES LTD

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

INTEGRATED XR

Page 1

AI-driven maintenance. By incorporating TDB's advanced generative AI, we have achieved outstanding accuracy, privacy, and operational efficiency.

We are excited to extend our impact in the industry further and believe this marks a significant step forward in our journey with AI and XR.”

MATERIALITY THRESHOLD:

This announcement is deemed material by the Board as it exceeds the Company’s Announcement Materiality Threshold and exceeds by 10%, TDB FY24 unaudited revenue. The Announcement Materiality Threshold is for individual or multiple contracts cumulatively equating to more than $500k in Revenue.

AUTHORISATION:

This ASX release is authorised by the Board of Directors of Vection Technologies Limited.

ENDS

INVESTOR RELATIONS CONTACT DETAILS:

Gianmarco Biagi - Managing Director (Europe Based) Email: [email protected] Phone: +39 051 014 2248

Gianmarco Orgnoni – Non-Executive Director (Australia Based) Email: [email protected] Phone: +61 8 6380 7446

ABOUT VECTION TECHNOLOGIES:

Vection Technologies is a growing enterprise-focused company that helps businesses bridge the physical and digital worlds. We help organisations leverage their 3D data via powerful extended reality (XR) interfaces that foster collaboration and learning, grow sales and more.

Vection Technologies is listed on the Australian Securities Exchange (ASX) with ticker code VR1, and trades on the U.S. over-the-counter (OTC) markets under the symbol VCTNY.

For more information, please visit: www.vection-technologies.com

FORWARD-LOOKING STATEMENTS:

Certain statements made in this release are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Vection Technologies' current expectations, estimates and projections about the industry in which Vection Technologies operates, and beliefs and assumptions. Forwardlooking statements can generally be identified by the use of forward-looking words such as 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'will', 'could', 'may', 'target', 'plan' and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, guidance, or outlook

ASX:VR1; OTC:VCTNY | ACN: 614 814 041

WEBSITE

www.vection-technologies.com

GLOBAL OFFICES

REGISTERED OFFICE

Level 4, Building C, Garden Office Park, 355 Scarborough Beach Road, Osborne Park WA 6017 - Australia

INTEGRATED XR

Page 2

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on future earnings, distributions, financial position, or performance are also forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the control of Vection Technologies, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forwardlooking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Vection Technologies only as of the date of this release. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Vection Technologies has no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this release except as required by law or by any appropriate regulatory authority.