Sondrel announced that, further to the Company's announcement of 27 February 2024, Sondrel has concluded the negotiations of the exhibits to the material design and supply contract for a next generation, video processing chip with a total estimated value of USD 23 million across the design, qualification and projected production life of the product. The complex chip is to be used for high performance, professional video streaming solutions. With the Company having previously entered into the master agreement with the customer and design work having already commenced, the finalisation of the exhibits to agreement are the final step in concluding agreement between the parties.

The initial contract value is for over USD 9 million for the duration of the design and qualification phases and the work will be fully funded by the customer. Chip production and supply are anticipated to start in 2026. Subject to successful tape out and qualification of prototypes, the contract is expected to generate production revenues of USD 14 million over the 10 to 15 year production lifetime of the product, based on current customer forecasts.