WISeKey Reports FY 2020 Audited Consolidated Financial Results 
 
   Schedules conference call for Friday, April 30 at 3:00 pm CET (9:00 am 
ET) 
 
   ZUG, Switzerland, April 30, 2021 -- WISeKey International Holding Ltd. 
("WISeKey" NASDAQ: WKEY; SIX Swiss Exchange: WIHN), a leading 
cybersecurity and IoT company, announced today its audited consolidated 
financial results for full year (FY) 2020 (period ended December 31, 
2020). 
 
   Carlos Moreira, WISeKey's Founder and CEO, noted, "2020 was a 
transformational year for WISeKey as we made significant investment in 
R&D to enhance our Artificial Intelligence capabilities, the real 
driving force behind IoT technology, expanded our product portfolio, and 
maintained the leading-edge technology position and competitive 
advantage of our offerings. We also built up our sales force in the 
U.S., Europe and Asia, to take advantage of higher demand for strong 
security, authentication, brand protection and anti-counterfeiting 
services for segments such as connected devices, connected cars, luxury 
products, pharmaceuticals and banking/financial sector. We ended the 
year with a strong cash position which supports our growth initiatives, 
both organically and through acquisitions, and at the same time gives us 
the flexibility to invest in strategic partnerships and joint ventures 
with global organizations." 
 
   Mr. Moreira added, "We have started 2021 on a very strong note. The 
acquisition of a controlling interest in arago has provided us with a 
new, higher-margin revenue source for AI-based Knowledge Automation. We 
believe that due to our solid revenue pipeline for existing product 
offerings and new opportunities in the emerging Cybersecure Automation 
for the AIoT market, WISeKey is well positioned to improve margins and 
increase revenues, thus providing higher returns to its shareholders." 
 
   WISeKey's FY20 audited consolidated financial results are available at 
https://www.wisekey.com/company/investors/financial-reports/. 
 
   2020 KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS: 
 
 
   -- Acquired 51% controlling interest in arago GmbH (arago) on February 1, 
      2021 and reached an agreement to acquire the remaining 49%: arago's 
      leading technology that provides AI to enterprises, globally, through 
      Knowledge Automation, its large recurring customer base and licensing 
      model, will bring significant synergies to WISeKey and strengthen our 
      position in the fast-growing AIoT market. 
 
   -- Revenue of $14.8 million: although lower than FY 2019 revenue (due to the 
      impact of COVID 19 pandemic, which disrupted supply chains worldwide, and 
      the political and trading tensions between the U.S. and China), the new 
      AIoT revenue stream and the rising demand for semiconductors since end of 
      2020, will fuel future revenue growth for WISeKey. 
 
   -- Substantial reduction in General & Administrative expenses (G&A): the 
      decrease of 32% to $10.7 million in FY 2020, from $15.8 million in FY 
      2019 was due to steps we took to manage our overhead costs and quickly 
      adjust to the new environment. While for 2021 we expect total G&A 
      expenses to increase to some extent, (as some of these costs, mainly 
      traveling related costs will return to pre-COVID levels, and additional 
      expenses related to the arago acquisition), we expect G&A expenses as 
      percentage of revenue to decline in the coming years due to general cost 
      reduction initiatives we have and will continue to implement. 
 
   -- Strong cash position: cash and cash equivalents, together with restricted 
      cash, increased to $21.8 million at December 31, 2020, from $16.6 million 
      at December 31, 2019, reflecting, to some extent, our cost control 
      measures. 
 
 
   2021 KEY GROWTH AREAS 
 
 
   -- Trusted Non-Fungible Token (NFT) Platform: WISeKey plans to deploy its 
      unique Digital Identification NFT platform technology in June 2021. This 
      NFT platform will provide the most secure and scalable blockchain backend 
      for creating real digital twins for valuable objects. This unique 
      approach will make it possible to mint a provenance and a digital version 
      of the object, into an NFT, that contains smart contracts on how the 
      digital twin may be used, thereby removing any uncertainty about what an 
      NFT actually means to a collector, by delivering authenticated, digital 
      twins, to the art and luxury market. Pilot projects have already been 
      executed in the luxury watch market, with a world premiere Hublot NFT 
      watch. 
 
   -- Trusted Automation: The WISeKey arago Integrated Automation Platform 
      licensing revenue model is expected to bring significant revenue 
      synergies and strengthen WISeKey's position in the fast-growing 
      Artificial Intelligence of Things ("AIoT") market. Knowledge The 
      Automation and Data platform HIRO(TM), developed by arago, takes a unique 
      approach to process automation by using AI to autonomously and 
      independently, determine how to complete and then automate, end-to-end 
      tasks, based on real time, contextual, data. Fully auditable and only 
      using steps defined and approved by the customer, Knowledge Automation 
      delivers significantly higher automation rates, at a much lower 
      operational cost. 
 
   FY 2020 RESULTS CONFERENCE CALL 
 
   Carlos Moreira, CEO and Peter Ward, CFO will host a conference call on 
Friday, April 30, 2021, at 3:00 p.m. CET / 9:00 a.m. ET to discuss these 
results, recent business developments and growth initiatives. A Q&A 
session will follow the prepared remarks. 
 
   Interested parties may participate in the call by dialing: 
 
 
 
 
United States (Toll)                  877-445-9755 
United States (Toll Free)             201-493-6744 
Spain (fixed) ATT:                     900 834 236 
Spain (mobile) ATT:                    900 834 876 
United Kingdom (fixed) ATT:         0 800 756 3429 
France (fixed) ATT /excl. Monaco:    0 800 912 848 
Switzerland (fixed) ATT:             0 800 835 525 
Switzerland (mobile) ATT:            0 800 891 374 
Italy (fixed) ATT:                     800 791 612 
Italy (mobile) ATT:                    800 796 508 
Netherlands (fixed) ATT:            0 800 023 4340 
Netherlands (mobile) ATT:           0 800 022 3580 
Germany (fixed) ATT:                0 800 182 0040 
Germany (mobile) ATT:               0 800 184 4713 
 
 
 
   To access the call, please dial-in approximately five minutes before the 
start time. The call will also be simultaneously audio & slides webcast 
over the Internet via this link 
https://www.globenewswire.com/Tracker?data=RRDKLKqcFaTU3g9S9SFN1zv596D3FJMwgkHAJE59PZEXOsgmziJXYoVdzm04K1qKQSpxRZtyOy6AieB6Rm3n4dJN7Vus9nwPdfCf2s4TCoafVzjt826ZYLjmbcYF-fNWhlN8b--bOV4Ez-DOsyl6xW3eFWrwyOoCLXDvyi5H1eo= 
and such link will also be made available in the "Investor Relations" 
section of WISeKey's website http://wisekey.com/investors/. 
 
   An archived version of the webinar will be available on WISeKey's 
website following the live presentation. For any questions regarding the 
event, please email Lcati@equityny.com 
https://www.globenewswire.com/Tracker?data=DdlXb_BUCQUIX4pjNh2p_qYkavSdfU0dAxqY4GLz3o5MsQIyxDllN0bUT0O7vtAfYpZkfCcITKBjSAAUmEr8Ad81TCTRXI54gQ7AqRnLuLo= 
. 
 
   ADDITIONAL FINANCIAL & OPERATIONAL DATA 
 
   FY 2019 Key Financials - WISeKey Group 
 
 
 
 
(Million US$) 
US GAAP                                  2020    2019 
                                        ------  ------ 
Net sales                                 14.8    22.7 
Gross profit                               5.5     9.5 
Operating loss as reported              (18.5)  (20.5) 
Net income attributable to WISeKey as 
 reported                               (28.7)     8.2 
 
Non-GAAP                                  2019    2019 
                                        ------  ------ 
EBITDA from continuing operations       (16.9)  (19.2) 
 
Total Cash and restricted cash            21.8    16.6 
 
   Non-GAAP Financial Measures 
 
   In managing WISeKey's business on a consolidated basis, WISeKey 
management develops an annual operating plan, which is approved by our 
Board of Directors, using non-GAAP financial measures. In measuring 
performance against this plan, management considers the actual or 
potential impacts on these non-GAAP financial measures from actions 
taken to reduce costs with the goal of increasing our gross margin and 
operating margin and when assessing appropriate levels of research and 
development efforts. In addition, management relies upon these non-GAAP 
financial measures when making decisions about product spending, 
administrative budgets, and other operating expenses. We believe that 
these non-GAAP financial measures, when coupled with the GAAP results 
and the reconciliations to corresponding GAAP financial measures, 
provide a more complete understanding of the Company's results of 
operations and the factors and trends affecting WISeKey's business. We 
believe that they enable investors to perform additional comparisons of 
our operating results, to assess our liquidity and capital position and 
to analyze financial performance excluding the effect of expenses 
unrelated to operations, certain non-cash expenses related to 
acquisitions and share-based compensation expense, which may obscure 
trends in WISeKey's underlying performance. This information also 
enables investors to compare financial results between periods where 
certain items may vary independent of business performance and allow for 
greater transparency with respect to key metrics used by management. 
 
   These non-GAAP financial measures are provided in addition to, and not 
as a substitute for, or superior to, measures of financial performance 
prepared in accordance with GAAP. The presentation of these and other 
similar items in WISeKey's non-GAAP financial results should not be 
interpreted as implying that these items are non-recurring, infrequent,

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