(Copenhagen, 26 May 2025) Napatech A/S ("Napatech", OSE: NAPA) reported revenues
of DKK 23.8 million in the first quarter of 2025. Gross margins for the quarter
were in line with expectations at 70.3%. The company's EBITDA came in at
negative DKK 29.0m for the quarter. Staff costs in Q1'25 were up 26% compared to
Q1'24 due to the build of development staff to serve the increased design win
pipeline.

"We have made considerable strides in meeting important mileposts of our
strategic plan that strengthen our position as an early leader in the new and
evolving mass market for advanced NICs. This includes both improving our core
business and making measurable progress towards our design win goals that
underpins our growth aspirations. This has gone according to plan, and in some
areas ahead of our expectations. When we compare our place to just one year ago,
we find ourselves in a much stronger position, with high-volume design wins, and
a closeness to new opportunities. Combined this increases our visibility into
the timing and scale of our transformation," said Lars Boilesen, CEO of Napatech

In order to secure the Company's path to profitability and provide sufficient
working capital to scale once volume orders materialize, the Company intends to
raise a minimum of NOK 150 million in new equity in the form of a Private
Placement. The Company has received indications of interest for an amount in
excess of NOK 150 million from larger existing shareholders (representing
approx. 60% of the outstanding shares), including NOK 2 million from CEO Lars
Boilesen and a pro-rata subscription of approximately 9.71% from Verdane Capital
VIII K/S ("Verdane"). Verdane is a closely associated legal person of chairman
Christian Jebsen. The Company has engaged ABG Sundal Collier ASA, DNB Carnegie,
a part of DNB Bank ASA, and SpareBank 1 Markets AS as Joint Lead Managers and
Bookrunners in the Private Placement. Further details are expected to be
announced in due course.

Napatech previously announced a design win with a tier-1 server OEM to build a
next generation solution to their specification for high volume use cases, as
well as the general market. Napatech has consistently met the hardware mileposts
ahead of plan and exceeded expectations. Napatech is intimately involved in the
next stage of their process, which includes the development and integration of
key software to meet their use-case requirements. 

Napatech also reports a new high-volume design win, with d-Matrix, a leader in
Artificial Intelligence inferencing for hyperscale cloud, next-wave cloud, and
enterprise datacenters. Napatech's Intel-Altra programmable NIC enables provides
the AI infrastructure that enables d-Matrix to deliver blazing fast AI inference
speeds, all at massive scale.

Napatech recently disclosed other winning solutions across an array of
applications and services by leading companies in their respective vertical
markets, including a cyber security solution with Broadcom Symantec, a Network
and Server Infrastructure solution with Eideticom, and an Artificial
Intelligence solution with Xelera for ultra-low latency transitions in financial
services markets. These are all examples of Napatech expanding its business to
large or high-growth segments that require our advanced NICs.

"We are inspired by these early success that are far ahead of the pace we could
have envisioned one year ago. Additionally, new companies with applications and
use cases are emerging regularly, expanding our pipeline of opportunities. Our
partnership with Intel-Altera continues to exceed our expectations and play a
critical role in our strategy and success," continued Boilesen.

"We began 2025 clear in our vision, focused on our goals, and confident in our
plans to achieve them. There are undeniable signs that programmable network
interface cards are changing the way modern datacenters are designed. The early
adopters have already decided, and many of them have standardized on the
Intel-Altera architecture. The mass market is emerging in their wake. We know
that it takes time to secure new design wins and move them from ideas to
production within our customers. We know how advantageous our starting position
is from our own long history, combined with the trajectory-boost provided by our
partnership with Intel-Altera. As each new segment of the mass market unfolds,
Napatech has made investments in people, products and partnerships to be in the
best position to capitalize on this new demand," Boilesen concluded. 

For more information, please see the attached report for the first quarter,
2025. 

Napatech will host a webcast presentation and a conference call of its first
quarter 2025 report today at 09:00 (CET). The presentation will be given by Lars
Boilesen (CEO) and Heine Thorsgaard (CFO).

The presentation will be delivered by webcast on:

https://events.q4inc.com/attendee/582360362

Dial-in details for the conference call are: 

DK: +45 89 87 50 45 
NO: +47 81 50 33 08 
UK: +44 20 3936 2999 
US: +1 646 787 9445

Access Code: 408079

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for the first quarter of 2025.

For additional information, please contact:

Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500
E-mail: htg@napatech.com

About Napatech 

Napatech is a leading supplier of programmable FPGA-based SmartNIC solutions
used in telecom, cloud, enterprise, cybersecurity and financial applications
worldwide. Through commercial-grade software suites integrated with robust,
high-performance hardware, Napatech accelerates telecom, networking and security
workloads to deliver best-in-class system-level performance while maximizing the
availability of server compute resources for running applications and services.

www.napatech.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 26 May
2025 at 08:00 CET.