Fjord Defence Group ASA - PartnerTech acquires Microprecision to expand precision manufacturing capacity for the defence industry

Oslo, 22 October 2026
Fjord Defence Group ASA ("Fjord Defence Group" or the "Company") today announces
that its wholly-owned subsidiary, PartnerTech Karlskoga Aktiebolag
("PartnerTech"), has signed an agreement to acquire 100% of the shares in the
Swedish precision manufacturing specialist Microprecision Aktiebolag
("Microprecision") (the "Acquisition").
The transaction expands the Group's high-precision metal component manufacturing
capacity for the Nordic and European defence sector. Microprecision will add
significant earnings capacity for PartnerTech and will be integrated as a
strategic bolt-on acquisition.

Strategic highlights and rationale
	- The Acquisition adds immediate, turnkey high-precision machining capacity in
a market where PartnerTech will continue to face sustained high demand from
tier-1 defence OEMs
	- The Acquisition delivers a modern, high-quality machine park with an
estimated value at multiple times the enterprise value (including potential full
earn-out) in the Acquisition
	- Acquiring an operational facility with skilled staff represents a
significantly faster and more capital-efficient route to growth than building
new facilities from scratch
	- Microprecision's 2025 revenue was SEK 102 million and an EBITDA of 0. 2026
revenue is expected at approximately ~SEK 70 million and EBITDA slightly
negative for 2026. LTM* (August 2026) revenue is SEK 97 million and EBITDA of
SEK 4.8 million
	- The Microprecision facility operates with a machine park capable of
supporting annual revenues of SEK 200 - 250 million within its existing
footprint through expanded shift operations
	- Microprecision operates with a manufacturing permit from the Swedish
Inspectorate of Strategic Products (ISP), along with ISO 9001, 14001, and 45001
certifications. This allows for immediate contract execution without additional
qualification lead times
	- The business brings a highly loyal customer base where over 80% of production
volume represents long-term, recurring business. Topline growth is expected to
start accelerating in 2027 based on expected volume increases from existing and
new defence customers
	- Microprecision is expected over time to scale toward full capacity
utilization, with operating margins gradually approaching PartnerTech's
established profitability levels
	- Operating out of a purpose-built 4,400 sqm facility, Microprecision employs
44 skilled specialists with an average tenure of 11 years. The facilities allow
for additional production capacity to be added over time
	- Microprecision's advanced CNC machining capabilities provide turnkey capacity
for manufacturing specialized, high-precision ammunition components, including
medium- to large-calibre shell casings, precision fuses, and projectile
assemblies
*LTM = Last Twelve Months

Executive comments
Jon Asbjørn Bø, CEO of Fjord Defence Group, comments: "This transaction delivers
on our strategy to grow through attractive bolt-on acquisitions for our
subsidiaries, helping PartnerTech expand its deliverables to existing and new
defence customers. It represents a capital-efficient route to growth, securing
both the right people and an advanced machine park at a fraction of its
replacement cost. Microprecision serves as a key building block toward reaching
our Group target of NOK 400-500 million in EBITDA by 2029."
Magnus Blomgren, CEO of PartnerTech, comments: "We have known Microprecision for
a long time and know that they deliver high quality to their customers. The
company currently operates sub-scale, but under PartnerTech's leadership, client
base and order backlog, we expect topline growth to start accelerating
significantly in 2027, with solid profitability achieved within a relatively
short period. PartnerTech's management team has executed similar growth journeys
in the past and possesses the complete operational toolbox to scale
Microprecision into a successful and profitable enterprise."

Transaction details and financing
	- The agreed Enterprise Value for Microprecision is SEK 23 million, including
SEK 17 million in debt
	- The total purchase price in the Acquisition comprises (i) a cash
consideration of SEK 1 million and (ii) consideration shares in the Company
worth SEK 2 million upon closing. The consideration shares will be transferred
from the Company's treasury shares at a share price of NOK 16.50 per share. In
addition, the Acquisition includes a performance-based earn-out of up to SEK 3
million, subject to Microprecision achieving certain financial targets in 2027
and 2028
	- The transaction will be fully financed through available cash reserves,
treasury shares and existing credit facilities
	- 100% of the shares are acquired from founder Rade Paunovic 
	- The Acquisition is subject to customary closing conditions, including
regulatory approvals / ISP approval transfer / manufacturing permit and FDI
clearance, and is expected to close during Q4 2026

About PartnerTech AB
PartnerTech AB is a leading Nordic contract manufacturer specializing in
high-precision machining and advanced mechanical solutions. PartnerTech has
experienced strong growth, expanding its revenue from SEK 348 million in 2022 to
approximately SEK 613 million in 2025. Approximately 92% of PartnerTech's
production volume is dedicated to the defence sector, with tier-1 defence OEMs
such as SAAB Dynamics and BAE Systems as key customers.

About Microprecision AB
Founded in 1975 and located in Brunna (Kungsängen), Sweden, Microprecision is a
specialized supplier of complex, high-precision components. The company operates
a full-value-chain capability, including CNC turning, milling, grinding, surface
treatment, hardening, and assembly, utilizing a high-quality machine park of 44
modern CNC units.

For more information, please contact:
Jon Asbjørn Bø, CEO
jab@fjorddefence.com 
+47 930 86 932

About Fjord Defence Group ASA
Fjord Defence Group ASA ("DFENS") is a Norwegian "compounder" listed on Euronext
Oslo Børs seeking to acquire and develop fast-growing, profitable, and well-run
companies in the defence industry. The company has a buy & build strategy, with
focus on acquiring established, profitable businesses within the defence,
security and related segments. More information on www.fjorddefencegroup.com.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
ion on www.fjorddefencegroup.com.\
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This information is subject to the disclosure requirements pursuant to section\
5-12 of the Norwegian Securities Trading Act.\