Ann: Wangle Finalises Agreement to Develop Microchip Proto-WGL.AX, page-2

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WANGLE FINALISES AGREEMENT TO DEVELOPMICROCHIP PROTOTYPE
 Wangle has executed an exclusive, strategic agreement with Power Skills Ltd (trading as “Jade”) to facilitate the design, build and deployment of a microchip (Wangle Chip).
 The Wangle Chip is a microchip prototype that will enable the Company’s technology to be utilised in hardware devices.
 The Wangle Chip will open up a range of new growth opportunities for the Company in the computer network industry, including but not limited to:
o WAN Optimisation - Global market expected to grow US$12.1 billion in 2019.
o Internet of things (IoT) - sector estimated to be worth US$14 trillion by 2022.
o Enterprise Networking Hardware - market expected to reach US$64 billion by 2024.
o Retail Networking Hardware - Sales-driven IoT expected to reach US$287 billion in 2016.
 Migrating Wangle’s revolutionary network optimisation product to hardware will:
o significantly increase the capacity of the network connections it manages;
o increase network efficiency;
o open up high volume processing required for WAN Optimisation; and
o allow for hardware integrations in the IoT and enterprise networking sectors.
 Wangle to release testing results across all verticals during the 6-month build process.
 Technology handover to occur on the 14th of October 2016, post the launch of the consumer App.

Wangle Technologies Limited (ASX:WGL) (Wangle or the Company) is pleased to announce that it has finalised an exclusive agreement with Power Skills Ltd, a leading business development and strategy firm based in Israel, to facilitate the design and build of a microchip prototype (Agreement). Prior to entering into the Agreement, Power Skills conducted a three-month due diligence process, providing further validation of the Wangle technology.

Power Skills - Leading Business Development and Strategy Partner
Power Skills is headed up by successful entrepreneur, Mr Moshe Cohen. Mr Cohen’s business development and corporate experience spans 18 years, during which time he has founded numerous successful technology businesses.

Power Skills have successfully developed and implemented strategies to drive the growth of a diverse portfolio of technology businesses, including: Passenger, a leading CRM platform in the US; VoiceSense, speech analysis technology; and Atomation, an Internet of things (IoT) focused platform.

Agreement to Facilitate Entry into Multibillion Microchip Sector and Expand Enterprise Opportunity Across the WAN Optimisation, IOT, Retail and Enterprise Hardware markets.
Wangle conducted detailed research on this technology and its wider market that has confirmed the steady rise of WAN optimisation technologies and appliances. Wangle believes a significant opportunity exists to apply its technology to this sector where key competitive advantages exist.

The Wangle Chip will open up potential additional revenue verticals in the following sectors:

 WAN Optimisation

With the increasing cost of and requirement for internet bandwidth for Enterprises to connect their separate office locations, the WAN optimisation market has seen rapid growth over the past years. Specialised hardware that is manageable through the cloud in particular has seen increased interest by Enterprises in all market sectors globally. Due to the marked performance advantage of specialised hardware over software, Wangle Technologies sees a definitive growth opportunity in allowing Enterprises to connect several locations into a Wide Area Network (WAN) using the Wangle platform.

 IoT

The “Internet of Things”, covering a wide range of markets, like mobile devices, specialised appliances, entertainment hardware and others, suffers from the same continuous increase of bandwidth requirements. The IoT sector is estimated to be worth US$14 trillion by 2022 (Gartner), with over 200 billion Internet connected devices by 2020 (IDC and Intel). The Wangle Chip will allow Wangle’s network optimisation to be integrated into IoT devices cheaply and efficiently.

 Enterprise Networking Hardware

The enterprise level networking sector, providing connectivity and data transfer services to the majority of the planet, has battled to meet demand for infrastructure-backed

increases in capacity. Instead of adding to the already large amounts of network hardware required, the Wangle Chip, deployed as an optimization coprocessor in network switches and routers, can increase the potential throughput per port, thus improving the entire industries ability to meet demand without significant infrastructure investment.

 Retail Networking Hardware

Especially in Australia, but also in many other parts of the planet, the average household suffers from slow internet speeds that cannot keep up with the increasing demand of cloud-based services like video and audio streaming. The increased difficulty of the Internet Service Provider industry to expand physical infrastructure fast enough to meet demand has caused a continuous deterioration of internet service quality for the average household. The Wangle Chip, deployed as an optimization coprocessor, in devices like ADSL modems, can significantly speed up internet speeds while simultaneously increasing security and providing data savings.

Ultimately, the move to deliver Wangle’s optimisation solution as a hardware component will allow the Company to optimise larger connections and provide optimisation to low energy solutions and integrated network devices.

Wangle will be conducting further in house testing across the identified verticals by implementing the technology in a replicated live environment.

These results will be released to the public to highlight the key competitive advantages the Wangle Chip can offer each industry. The testing will commence in the coming weeks post the launch of consumer application on the 14th October 2016.
- ENDS