Tesmec grows on the international railway market: new orders acquired for a total value of around euro 15 million

TESMEC GROWS ON THE INTERNATIONAL RAILWAY MARKET: NEW ORDERS ACQUIRED FOR A TOTAL VALUE OF AROUND EURO 15 MILLION

• Awarded contract in the Czech Republic by ELZEL Elektrizace železnic Praha a.s. with a value of approximately Euro 13 million;
• Acquired contract in Israel by Linom Ltd. with a total value of approximately Euro 2 million;
• The two contracts are of strategic importance for the Group because they confirm the international growth in the railway sector, especially in the catenary stringing field, in Countries that give priority to quality and innovative technologies

Grassobbio (Bergamo - Italy), 20 December 2021 - Tesmec S.p.A. (MTA, STAR: TES) ("Tesmec" or the "Company"), at the head of a group leader in the market of technologies for infrastructures (overhead, underground and railway networks) related to the transport of energy, data and materials (oil and derivatives, gas and water), and of technologies in surface mining, announces the award, via Tesmec Rail, of two international contracts in the railway sector, in the Czech Republic and in Israel.

In particular, the contract in the Czech Republic has a total value of approximately Euro 13 million and was awarded by ELZEL Elektrizace železnic Praha a.s., a leading company in the design, production, assembly and construction of electrical catenaries in the Czech Republic and in Slovakia. The scope of supply includes 4 multifunction vehicles for the maintenance and diagnostics of the railway catenary equipped with ETCS onboard system for Interoperability in Europe and 2 units for the automated stringing of the railway power line which, thanks to the high technological level, will be able to build an innovative overhead line for train traffic at speeds of over 200 km/h. These are latest generation vehicles, equipped with digital on-board systems and interconnected to the network to allow the collection and smart management of the data. The line will be installed with an innovative methodology, able to meet the operating conditions also for the new high- speed lines, not only in the Czech Republic, but also throughout Europe. Delivery of the vehicles and units is expected in the fourth quarter of 2022.

The other contract is an order made by Linom Ltd., a leading company in the field of civil engineering in Israel, for a total value of approximately Euro 2 million for the supply of 1 multifunction vehicle for the maintenance of overhead railway line with the opportunity to install diagnostic systems.

Linom Ltd. awarded a framework contract with Israel Railways for 5 years for the construction of new lines, maintenance and electrification of existing ones.

Thanks to this contract Tesmec enters the railway business in Israel, a market with interesting growth opportunities considering that the National Railways of Israel are aiming to use the most advanced solutions in the market to guarantee the highest standards of safety and technology. The delivery of the vehicle is expected in the first quarter of 2022.

The two new contracts have a strategic relevance for Tesmec Group, because they confirm the expected growth in the railway sector, consolidating Tesmec market position also at the international level in the business core of the catenary railway line electrification thanks to the design and production of technological railway vehicles and equipment which stand out on innovation, safety, efficiency, quality also by sustainability and energy saving.

Tesmec S.p.A. - via Zanica, 17/O - 24050 Grassobbio (Bergamo) - Italy

Tel. [phone] - Fax [phone] - [e-mail] - www.tesmec.com

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The General Manager, Paolo Mosconi, commented "We are very satisfied for the two contracts which represent a confirmation of our global growth strategy in the railway sector, as well as of our technological capabilities. Especially, the tender awarded in Czech Republic is a particularly innovative project based on the change of the technological principle and for this reason able to guarantee the compliance with the highest technical, ecological and operational parameters, while the contract in Israel can represent a real hub for our future development in the entire Middle East area."

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For further information:
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This press release is also available on www.tesmec.com in the "Investors" section: https://investor.tesmec.com/en/Investors/PressReleases

Tesmec Group

Tesmec Group is active in the design, production and marketing of systems and integrated solutions for the construction, maintenance and diagnostics of infrastructures (overhead, underground and railway networks) for the transport of energy, data and materials (oil and derivatives, gas and water), as well as technologies for quarries and surface mining. The Group operates in the following sectors: - Energy. Tesmec Group designs, manufactures and markets machines and integrated systems for the construction and maintenance of overhead and underground power lines, fibre optic networks (Stringing segment), as well as advanced equipment and systems for the automation, efficiency, management and monitoring of high, medium and low voltage electrical networks and substations (Energy Automation Segment); - Trencher. Tesmec Group carries out the design, production, sale and rental of trencher machines functional to four types of activities (excavation and mines, excavations for the installation of pipelines, for the construction of telecommunication and optical fibre infrastructures, excavations for the construction of underground power networks), as well as the provision of specialized excavation services. The trencher machines are rented by the Group both with the operator (hot rental or wet rental) and without the operator (cold rental or dry rental); - Railway. The Group designs, manufactures and markets machines and integrated systems for the installation and maintenance of the railway catenary, devices for the diagnostics of the railway catenary and track, as well as customized machines for special operations on the line.

Born in Italy in 1951 and led by the Chairman and CEO Ambrogio Caccia Dominioni, the Group counts on more than 900 employees and has its production sites in Grassobbio (Bergamo), Endine Gaiano (Bergamo), Sirone (Lecco), Monopoli (Bari) and Bitetto (Bari) in Italy, Alvarado (Texas) in the USA and Durtal in France. It relies on three research and development units in Fidenza (Parma), Padua and Patrica (Frosinone). Listed on the EURONEXT STAR MILAN of the Euronext Milan market of the Italian Stock Exchange, the Group boasts a global commercial presence through foreign subsidiaries and sales offices in the USA, in South Africa, West Africa, Australia, New Zealand, Russia, Qatar and China.

In its development strategy, the Group intends to consolidate its position as a solution provider in the three abovementioned business areas, by exploiting the trends of energy transition, digitalization, and sustainability.

Tesmec S.p.A. - via Zanica, 17/O - 24050 Grassobbio (Bergamo) - Italy

Tel. [phone] - Fax [phone] - [e-mail] - www.tesmec.com

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