(Copenhagen, 5 November 2024) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 34.01 million in the third quarter of 2024, an increase of 47.1%
from 23.2 million in the second quarter of 2024, but down 31% compared to Q3
2023. The company's EBITDA came in at negative DKK 18.9 million (9.3 million
better and an improvement compared to the second quarter of 2024).

"As we enter the final quarter of our 2024 fiscal year, I am happy to report
that 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 market for programmable NICs. This includes both improving our core
business and making measurable progress towards our design win goals that
underpin our growth aspirations. In many ways this has gone according to plan,
and in some areas ahead of our expectations," says Lars Boilesen, CEO of
Napatech. 

Napatech is a leading global provider of Programmable NICs, including Smart
Network Interface Cards (SmartNIC) and Infrastructure Processing Units (IPU),
used by cloud, enterprise, and telecommunication network operators to
dramatically improve the performance and economics of servers and appliances.

The company's strategy is anchored in three areas. Firstly, servicing Napatech's
valuable customers who are early adopters of Programmable NICs. Secondly,
accelerating Napatech's engineering investments into hardware and software that
extend the company's offering into new, high-growth segments. Finally,
developing a robust ecosystem that extends Napatech's own go-to-market reach via
marketing, business development and sales partnerships. 

A key developments in the third quarter included our engineering team meeting a
significant milepost in the product design of our next-generation IPU, on
schedule, and shipped the first engineering samples to our lead customers, for
their initial bring-up and qualification. While this is an early step in a long
design-win engagement that will continue through 2025, it is an important
milepost that was met amidst challenge requirements and high expectations.

"We continued to expand our design-win pipeline with new opportunities and
projects emerging on a consistent basis. This is expected given a number of
positive factors benefiting Napatech, including: industry momentum for
programmable NICs in next generation datacenter architectures