Tern PLC: New commercial order for FundamentalVR

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

4 December 2019

Tern Plc ('Tern' or the 'Company')

New commercial order for FundamentalVR

Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things ('IoT'), is pleased to announce that FVRVS Limited ('FundamentalVR'), a leading virtual reality('VR')training and data analysis technology platform,and one of Tern's existing portfolio companies, hassecured a significant new contract (£0.5 million) to create a Virtual Reality Haptic Simulation platformfor a new customer, which is a global pharmaceutical company('the Client').

This is the first ofa planned series of virtual reality simulationsto be designed by FundamentalVR to support the Client'sambitions to accelerate the safe and compliant use of their products. This order to configure the Fundamental platform for a surgical procedure is expected to be completed during 2020. FundamentalVR'stechnology is now being used by an array of customer groups including:

• Clinics/ medical centres
• Device companies
• Pharmaceutical companies

FundamentalVR'saward winning platform combines immersive VRwith cutting-edge haptics (the sense of touch) to create low-cost, measurable and scalable simulation experiences. FundamentalVR'sunique technology provides surgeons and medical professionals with a new and better way of developing their skills. Importantly, it also provides companies with data on skills and usage of their products, enabling acceleration of the safe and compliant use of their products.

Tern CEO, Al Sisto, said, 'FundamentalVRcontinues to expand its market presence throughits complementary haptic-based simulation platforms and we congratulate the FundamentalVR team on this additional contract win. FundamentalVR'saward-winning technology will be employed by thispharmaceutical company to drive the uptake of its products, highlighting the broad array of medical marketsavailable to our portfolio company. Importantly, the FundamentalVR team is ideally positioned to execute on this potential multi-phase project following its recent fundraise which saw investment from well-regarded institutions. We look forward to reporting on the future growth of this exciting business, as well as our other portfolio companies.'

**ENDS**

Enquiries

Tern plc Al Sisto, CEO Sarah Payne, Finance Director	Via Newgate Communications
Allenby Capital Limited (Nomad and Joint broker) David Worlidge/Alex Brearley	Tel: [phone]
Whitman Howard (Joint broker) Nick Lovering/Christopher Furness	Tel: [phone]
Newgate Communications PR Elisabeth Cowell/Megan Kovach	Tel: [phone]