20 January 2023

Vela Technologies plc

("Vela" or "the Company")

Investment in Ethernity Networks Ltd

The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on early stage and pre-IPO disruptive technology investments, announces that the Company has invested £49,000 in Ethernity Networks Ltd ("Ethernity") through the purchase of 700,000 ordinary shares. The investment has been made as part of a £1.55 million placing undertaken by Ethernity, details of which were announced by Ethernity on 17 January 2023.

Further information on Ethernity

Ethernity is a leading provider of networking and security software solutions on Field Programmable Gate Arrays (FPGAs), incorporated into SoCs, SmartNICs, and network appliances. Ethernity was founded in 2004 and has its technology deployed in over 700,000 systems worldwide, connecting over 100 million end users. With global headquarters in Airport City, Israel, Ethernity is traded on the AIM market of the London Stock Exchange.

Ethernity delivers innovative software solutions for networking and security, ported on any FPGA. Ethernity offer complete data processing solutions with a rich set of networking features, robust security, and a wide range of virtual functions to optimise and accelerate telco/cloud networks. Its complete solutions, which are being implemented, facilitate the deployment of edge computing, 5G, IoT, and NFV.

As the holder of five US patents for its technology, Ethernity is positioned to enable the delivery of optimised offerings that can not only accelerate network performance but can also save its customers on their operating expenses, such as power consumption and physical space, by reducing the required number of computer server CPU cores.

For the year ended 31 December 2021, Ethernity reported a loss before taxation of $9.2 million. Ethernity's unaudited net assets as at 30 June 2022 were $9.6 million.

Details of the investment

Vela has purchased 700,000 ordinary shares of NIS 0.001 each in Ethernity, at a price of 7 pence per share for a total cost to the Company of £49,000, satisfied from the Company's existing cash resources.

Settlement of Vela's investment took place earlier today, in accordance with the details announced by Ethernity on 17 January 2023.

Vela's investment is part of a placing for Ethernity that successfully raised £1.55 million (before expenses) for the company. In addition, Ethernity raised £0.1 million by way of a broker option, as announced by Ethernity on 19 January 2023.

Following this purchase, Vela holds 700,000 ordinary shares in Ethernity representing 0.68 per cent. of Ethernity's current issued share capital.

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About Vela Technologies

Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.