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Enersize submits two patent applications of major strategic importance to the company

English translation of earlier released news: Enersize Oyj ("Enersize") submitted two patent applications as of the 20th of March, which the Board of Enersize considers to be of major strategic importance to the company. The applications concern, in part, a method for simulating and evaluating compressor systems, as well as a method for analyzing energy efficiency and causal links in compressor systems. Both patent applications have been filed in parallel in Sweden and China.

The company and the company's patent representative have assessed the likelihood that patent applications will be approved as very good and that the patents will provide strong protection for the inventions.

The invention means that analysis of production efficiency, compressor utilization and matching of compressed air consumption can be automated. Performing this kind of analysis with company-known methods available on the market is presently time-consuming work that requires deep expertise that often provides an incomplete and inadequate picture of incorrect settings, system failures, causality and improvement capabilities.

Enersize’s new methods mean that the company has now reached an automation level so that the necessary analysis can be done at factory level and without assistance. The fact that the analysis can now be done automatically instead of manually allows the analysis to take place in real time, which gives major advantages in relation to, for example, production changes. Furthermore, this also enables continuous system monitoring and automated deviation and inefficiency detection.

In connection with this press release, Enersize has also released an additional press release which, in more detail, reports the strategic benefits and how Enersize intends to benefit from these by adapting the company's growth strategy. The press release can be found at: www.enersize.com/news/.

Strategic benefits and new opportunities

Enersize has so far relied on protecting its technology by offering its customers access to technology through project collaboration where Enersize has been responsible for analysis work and the use of SaaS (Software as a Service). However, this has resulted in restrictions on how Enersize has been able to develop its business. With these two patent applications, Enersize has more opportunities for market exploration of its technology as well as the opportunity to collaborate with other market players through, for example, technology licensing or market partnerships that provide significantly better scalability in the future. In other words, Enersize can now offer partners, customers and ongoing projects access to technology. The two patent applications also improve the protection of Enersize's customer offering within the segment by preventing other operators from offering similar products.

Positive impact on the sales process and implementation of existing projects

Enersize estimates that the inventions will have a positive impact on both the sales process and ongoing projects as it will now be possible to share customers with a deeper insight into both the analysis and the results. Furthermore, the analysis can now be performed much faster and with shorter measurement periods. The invention also provides for the possibility of performing preliminary efficiency analyzes even without measurement data, which means that it can already be used in the pre-sales process. With patent-pending technology and software with significantly better performance than other market-available options for efficiency analysis and system insight, a strong competitive advantage is created.

Lack of competing technology

A prior art review has also been carried out, which has not shown any related inventions that could impede patentability. The review also showed that a lack of public patent documents aimed at analysis / computer-based analysis of industrial compressed air systems. This has strengthened Enersize’s view that the software the company develops is unique. The existing patents and patent applications that have been most closely related have been directed to control strategies for compressors or compressor control systems.

Shorter time to market for autonomous software

Of strategic importance is also that the patents allow for a shorter time-to-market for the autonomous, fully-automated analysis software that Enersize intends to launch. Thanks to the inventions, the company has achieved an additional automation step that processes and filters raw data in such a way that application of machine learning and artificial intelligence as decision support is now much easier and faster to implement.

Completed field tests with positive results

Enersize has conducted test runs on existing customer systems, with direct savings potential of up to 40% detected. About 70% of all systems tested have proven to be both error-dimensioned by the compressor suppliers and have incorrect control parameters with both latent instability and inefficiency as a result. Within the group of smaller systems under 2MW installed capacity, 100% of the test run systems were found to be both malformed and incorrect settings with instability and low efficiency as a result.

About Patent Applications

The inventions have been developed in the Enersize Research Department in Lund, where five people currently work in research and development, two of which are PHDs.

Patent applications and news reviews have been conducted by Awapatent, one of the leading IP consulting companies with operations in Europe and China, with 165 IP consultants, advisors and patent attorneys. Awapatent is headquartered in Malmö, founded in 1897 and has several Fortune 500 companies as customers.

The two patent applications have been submitted in parallel in Sweden and China to provide better protection and shorter time for patent approval. The intention is to extend international protection through international PCT applications. Both patent applications refer to so-called method patents. A granted patent entails an exclusive right of 20 years from the date of application.

As applications are filed, priority is given to the protection of inventions, which means that upon a later approval of the patents, protection will be covered from the filing dates. This means that Enersize can already utilize an upcoming, expected approval through, for example, licensing of the technology without having to wait for an approval, known as Patent Pending.

The patent applications' content is confidential during the application process for the next 18 months. Approval of patent applications can be expected no later than 18 months for basic applications in Sweden and China. Awapatent's view, based on the review of existing technology and patents, as well as the design and scope of patent applications, is that Enersize will receive strong international inventive protection.

Risks and uncertainties regarding patents and patent applications

The review process for patent applications is dependent on many factors, such as: previously published or unpublished patents; patent applications or technologies; claims for payment of different patent fees; extension to other countries with own review processes, and more. This implies that there are a number of general risks associated with both the application and review process which may limit the patent protection of the inventions. Even approved patents can be challenged in court, which may imply a later risk of limiting or eliminating the protection of inventions.

Christian Merheim, Chairman Enersize, comments:

"This is undoubtedly the biggest step Enersize has taken, both technically and commercially. This shows very clearly and concretely that we have a unique offer and it now also gives Enersize an opportunity to utilize this to improve everything from retail sales, acceleration of existing projects and shorter time-to-market for our autonomous software. These two patent applications are truly door-openers in all areas.

Sami Mykkänen, CEO Enersize, comments:

"The development department is in the process of putting hands on the final pieces so that we can basically take advantage of these inventions. It feels great to now be able to go to both old and new customers and show us and our analytical capacity in a completely different way than before. With this we will see very positive results in a short period of time."

Anders Sjögren, Head of Research, Enersize, comments:

"It has been hard work to get this done in such a short time, but the result has been successful. With these two patent applications, Enersize has really lifted the technical level of what the industry thought possible with regard to the analysis of compressed air systems. I am now looking forward to the ongoing work of developing several inventions of the same importance here in Lund."

For more information about Enersize, please contact:

Christian Merheim, Chairman of the Board

Phone: +46 (0) 708-182 853

E-mail: christian.merheim@enersize.com

Or (English only):

Sami Mykkänen, CEO

Tel: +358 405 59 90 47

E-mail: sami.mykkanen@enersize.com

Enersize in brief

With proprietary software for data collection and analysis, Enersize provides up to 30% energy savings in industrial compressed air systems. 90% of the manufacturing industry uses compressed air that accounts for 5% of the world's electricity consumption. Enersize shares the merit of energy saving with the customer, who does not have to pay anything for the solution, but only shares the savings made. Among Enersize's existing customers are: one of the world's largest manufacturers of flat panel displays and well-known car manufacturers and steelworks. The company has its headquarters in Helsinki and a development office in Lund. The company is listed on Nasdaq Stockholm First North under ticker: ENERS. www.enersize.com

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