NEXT Biometrics signed a five-year commercial agreement with its OEM partner in India, following the MoU signed on April 27, 2023. At signing of the commercial agreement, NEXT received a minimum purchase order worth more than NOK 65 million. NEXT Biometrics has, ahead of time, signed a multi-year commercial agreement with its new India OEM partner following the MoU signed April 27, 2023.

The OEM partner in India ordered at the same time FAP20 sensors with a minimum order value of more than NOK 65 million instead of the earlier communicated NOK 15 million. This significantly increased purchase order is attributed to the maturing Aadhaar L1 market, evident from the fact that Indian government agencies have already opened tenders valued at multi-million US dollars. The OEM partner in India has a substantial existing customer base that currently utilizes the old generation of Aadhaar sensors.

These sensors will now be upgraded to NEXT's latest FAP20 sensors, marking a transition to the new generation of technology. The commercial launch of the partner's devices will be once the OEM has certified its products. The OEM expects NEXT to deliver its first batch of sensors by end of First Quarter 2024.

As communicated on April 27, 2023 (when the MoU was announced), the partner forecasts annual sensor shipments of NOK 15-30 million per year. Hence, the minimum committed sensor volumes are likely to be consumed well before the 5 years duration of the contract. 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 the Norwegian Securities Trading Act.