ArchTIS : Awarded $7m Contract with Aus Department of Defence

archTIS Awarded $7M Contract with the Australian Department of Defence

Largest sale in company history for Kojensi to secure information collaboration across the agency

• Total contract value is $7.03M (inc. GST) over two years which includes $3.44M in recurring revenue over a two-year period and $3.59M for services, support and hardware for the expanded growth and implementation of Kojensi.
• New contract with the Australian Department of Defence (Defence) for expanded and enhanced licensing of Kojensi to be deployed on-premise.
• This sale continues archTlS' strong growth trend in the Defence and National Security market and follows the recent OneDefence win with KPMG to deliver the overall data security strategy for Defence.
• Establishes Kojensi for future growth of users and licencing as Defence expands the platform across additional sites.
• Following an assessment of available solutions in the marketplace, the contract was sole sourced demonstrating Kojensis unique value proposition in the market.

Canberra, Australia - archTIS Limited (ASX:AR9 /OTCQB:ARHLF) (archTIS or the Company) 23 June, 2022, a global provider of innovative software solutions for the secure collaboration of sensitive information, is pleased to announce that the Company has entered into a new contract to expand and enhance the existing deployment of Kojensi within Defence.

The total contract value is $7,031,750 (inc. GST). This includes $3,438,050 in recurring revenue payable over a two-year period along with services, support and hardware contracts worth $3,593,700, payable on delivery. The contract term commenced upon execution today, and continues until 30 June 2024, with an option for the customer to extend for a further 12 months on the same terms. The contract can be terminated for convenience. However, the contract provides for acceptance and payment of deliverables prior to the date of termination, together with any reasonable costs attributable to the termination.

Daniel Lai, archTIS Managing Director and CEO, said: We are pleased to close the largest sale in the Companys history for $7.03M. Over the past 18 months we have been actively targeting global defence agencies and the broader defence industry due to their compelling need to secure highly sensitive information. This target market strongly aligns with the unique value proposition our products offer. Kojensi and NC Protect are filling a critical need for zero-trust information security in the well-funded, defence and intelligence market and the industries that support them.

This contract continues archTIS success in Defence and follows the recent announcement of archTIS participation in the KPMG Consortium (dated 11 April 2022) which was awarded Tranche 1 of the OneDefence Data Program. archTIS will bring to the consortium its expertise in Data Security Architecture. Terms of archTIS involvement in the consortium are still being finalised, and will be disclosed to the market in due course.

The new award expands upon the existing deployment of Kojensi in the agency, as well as the agencys use of NC Protect in the Defence Information Environment (DIE).

NC Protect secures documentation and file sharing across SharePoint for classified information or content in communities of interest on the DIE. Further evidence the Company is successfully executing its strategy to be the premier Data Centric Security and Policy Enforcement company in Defence.

Learn more: https://www.archtis.com/wp-content/uploads/2022/06/archTIS-CaseStudy_NC-Protect-AUS-DoD-6-22.pdf.

Kurt Mueffelmann, Global COO, said: The recent sale to Australian Defence continues to drive our high-gross margin licensing strategy of more predictable, low-churn ARR. This sale alone will drive significant revenue into FY23 and beyond.

-ENDS-

Authorised for issue by order of the Board of Directors.

For further information please contact:

Company enquiries Daniel Lai Managing Director, archTIS E: [e-mail]	Irena Mroz CMO, archTIS E: [e-mail]
Investor Relations and Media enquiries Media & Capital Partners E: [e-mail]

About archTIS Limited

archTIS Limited (ASX:AR9, OTCQB:ARHLF) is a global provider of innovative software solutions for the secure collaboration of sensitive information. The companys award-winning data-centric information security solutions protect the worlds most sensitive content in government, defence, supply chain, enterprises and regulated industries through attribute-based access and control (ABAC) policies. archTIS products include Kojensi, a multi-government certified platform for the secure access, sharing and collaboration of sensitive and classified information; and NC Protect and the cp. suite of products for enhanced information protection for file access and sharing, messaging and emailing of sensitive and classified content across Microsoft 365 apps, Dropbox, Nutanix Files and Windows file shares. For more information, visit archtis.com or follow @arch_tis.