Announcement PDF ASX Announcement 15 July 2024 ADISYN ANNOUNCES STRATEGIC COLLABORATION WITH 2D GENERATION TO ADVANCE AI AND SEMICONDUCTOR TECHNOLOGY Highlights: Collabora on with leading semiconductor IP business 2D Genera on to generate transforma onal opportuni es in the AI space, leveraging AI1's learnings in data centres and cybersecurity.  2D Genera on is developing applica ons to enable the next genera on of high-performance, energy-efficient semiconductor solu ons for AI and datacentres  2D Genera on is a founding partner in the EU's Connec ng Chips Joint Undertaking  Research and innova on partners include NVIDIA, IMEC, Valeo, Applied Materials, NXP and Unity.  Adisyn Ltd (ASX: AI1) (“Adisyn” or the “Company”) has entered into a binding collabora on agreement (“Collabora on Agreement”) with 2D Genera on Ltd, a prominent interna onal semiconductor IP business incorporated in Israel (“2D Genera on”). This partnership aims to generate transforma onal opportuni es in the AI space, leveraging Adisyn’s exper se in data centre management, managed IT services, and cybersecurity, alongside 2D Genera on’s industry-leading capabili es in developing next-genera on AI semiconductor solu ons. Driving AI and Semiconductor Innova on The collabora on is poised to advance the development of high-performance, energy-efficient semiconductor solu ons crucial for AI and data centres. 2D Genera on, renowned globally for its intellectual property innova ons in semiconductors that enhance performance enabling genera ve AI and significant data centre efficiencies, is also a founding partner in the EU's Connec ng Chips Joint Undertaking, reflec ng its commitment to driving semiconductor advancements. The Objec ves of the Collabora on The applica ons of the jointly developed technologies will align with AI1’s dual track strategy of AI enablement and advanced data centre and cyber security solu ons. The material terms of the binding Collabora on Agreement are as follows: Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspira on Circuit, Bibra Lake WA 6163 | adisyn.com.au 1. Innova ve AI Chips: The partnership will focus on crea ng intellectual property for electronic photonic power and systems on chips (SoC) and their integra on into systems in package (SiP) modules. 2. High-Performance Compu ng: Applica ons will target AI, data centres, high-performance compu ng, and other digital industries, including cybersecurity. 3. Environmental Impact: Addressing the scalability limita ons and massive energy demands of semiconductors to reduce societal and environmental costs. 4. Within 60 days the par es will finalise a formal joint ac on plan regarding the implementa on of the collabora on strategy going forward. 5. The par es will mutually fund the costs of developing the joint ac on plan and the collabora on. Adisyn does not an cipate its contribu on to these costs to be material at this stage. Further, Adisyn an cipates that the ini al revenues from the Collabora on will be nominal at this stage, as is usually the case at the start of collabora ons of this nature. 6. The intellectual property developed from the ac on plan and the collabora on will be owned solely by 2D Genera on with the right of assignment to Adisyn for commercialisa on on terms yet to be formalised. 7. The term of the Collabora on Agreement is ongoing un l terminated in wri ng by either party. Adisyn will keep shareholders updated in respect of the finalisa on of the formal joint ac on plan and any further related agreements. 'Moore’s Law and Its Challenges ‘Moore’s Law states that the speed and capability of computers can be expected to double every two years, but it is facing significant challenges as semiconductors approach scalability limits. In addi on, the massive energy demands required for data storage and processing are genera ng substan al costs for society and the environment. The collabora on between Adisyn and 2D Genera on aims to develop and refine Adisyn's overall ar ficial intelligence strategy and priori es, with a strong focus on energy efficient solu ons for data centres and cybersecurity. “The collabora on between Adisyn and 2D Genera on marks a pivotal step in advancing AI and semiconductor technology, promising to deliver innova ve solu ons for data centres and beyond. This collabora on also underscores the cri cal role of semiconductors in the global economy and their poten al for enabling sustainable solu ons” said Adisyn Managing Director Blake Burton. The Broader AI and Semiconductor Market The semiconductor industry is at the heart of the ongoing technological revolu on, driven by AI advancements. According to a PwC report, the AI market is expected to reach $15.7 trillion by 2030, with an annual growth rate of 26.4% between 2020 and 2024. This growth underscores the importance of semiconductors in enabling AI technologies. Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspira on Circuit, Bibra Lake WA 6163 | adisyn.com.au In 2020, the US invested $23.2 billion in AI research and development, with China following at $16.6 billion. The EU has also set an ambi ous goal of inves ng €20 billion annually in AI over the next decade. The global AI chip market is projected to grow from $10.1 billion in 2020 to $253 billion by 2030, with a compound annual growth rate of 35%. Looking forward Shane Wee, AI1’s Chairman said “our interac ons with the 2D Genera on team to date have provided a massive insight into the opportuni es that cu ng edge AI hardware and so ware offer to the future of datacentres and cybersecurity defence industries. The collabora on has only just begun and 2D Genera on’s contribu ons enabled specifically by the knowledge gained from their industry partners par cularly through the Connec ngChips ini a ve are seismic.” Founder and CEO of 2D Genera on, Arye Kohavi, agrees sta ng “semiconductors are reaching a cri cal juncture where processing power cannot keep up with developments in AI and the corresponding growth in data storage and manipula on requirements. Together with AI1 and our other collabora on partners including IMEC and our Connec ngChips partners Nvidia, Valeo, AT&S among others, we are dedicated to inspiring the next leap in compu ng.” -ENDSThis announcement has been approved for release by the Board of Adisyn Ltd. Further Information: Blake Burton Managing Director, Adisyn investors@adisyn.com.au 1300 331 888 Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspira on Circuit, Bibra Lake WA 6163 | adisyn.com.au References 1. PwC. "Sizing the prize - PwC's Global Ar ficial Intelligence Study: Exploi ng the AI Revolu on." (h ps://www.pwc.com/gx/en/issues/analy cs/assets/pwc-ai-analysis-sizing-the-prize-report.pdf). 2. Grand View Research. "Ar ficial Intelligence Market Size, Share & Trends Analysis Report By Solu on, By Technology, By End Use, By Region, And Segment Forecasts, 2020 - 2027." (h ps://www.grandviewresearch.com/industry-analysis/ar ficial-intelligence-ai-market). 3. McKinsey & Company. "Global AI Survey: AI proves its worth, but few scale impact." (h ps://www.mckinsey.com/business-func ons/mckinsey-analy cs/our-insights/global-ai-survey-aiproves-its-worth-but-few-scale-impact). 4. European Commission. "A European approach to ar ficial intelligence." (h ps://ec.europa.eu/digital-strategy/our-policies/european-approach-ar ficial-intelligence_en). 5. Allied Market Research. "AI Chip Market by Chip Type, Applica on, Technology, Industry Ver cal, and Region: Global Opportunity Analysis and Industry Forecast, 2021-2030." (h ps://www.alliedmarketresearch.com/AI-chip-market). 6. Semiconductor Industry Associa on. "2020 State of the U.S. Semiconductor Industry." (h ps://www.semiconductors.org/2020-state-of-the-u-s-semiconductor-industry/). About 2D Genera on 2D Genera on is an Israeli high-tech company specialising in graphene-based solu ons for the semiconductor industry. Founded by experienced entrepreneurs and scien sts, the company is dedicated to overcoming current technological limita ons by developing faster, stronger, and more energy-efficient computer processing solu ons. These advancements will support the next genera on of AI, data storage, telecommunica ons, cybersecurity, mobile devices, and more. About Adisyn Adisyn (ASX: AI1) is a provider of managed technology services and solu ons, primarily targe ng the SME market. The company aims to be the preferred sovereign provider for SMEs in the Australian defence industry supply chain. Adisyn’s offerings include a range of solu ons tailored to this growing market segment, leveraging internal capabili es and strategic partnerships, par cularly in cybersecurity and AI. Forward-looking statements: Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of Adisyn Ltd are, or may be, forward-looking statements. Such statements relate to future events and expectations and as such, involve known and unknown risks and uncertainties. These forward-looking statements are not guarantees or predictions of future performance and involve known and Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspira on Circuit, Bibra Lake WA 6163 | adisyn.com.au unknown risks, uncertainties, and other factors, many of which are beyond the Company's control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. The Company cautions shareholders and prospective shareholders not to put undue reliance on forward-looking statements, which reflect the Company's expectations only as of the date of this announcement. The Company disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. Adisyn Ltd | ACN 155 473 304 | 1300 331 888 | 27 Aspira on Circuit, Bibra Lake WA 6163 | adisyn.com.au