Elliptic Labs initiates cost efficiency initiative following strategic review

27 Jan 2026 08:00 CET

Oslo, Norway - Elliptic Labs (OSE: ELABS) today announces cost efficiency
initiatives as part of the strategic review announced on the company's third
quarter 2025 disclosure.

The planned actions involve cost reductions and organizational changes aimed
at aligning the company's structure and resource allocation across existing
and new product verticals. The actions are expected to improve execution
focus, strengthen accountability, and help build a more efficient
organization.

The cost efficiency initiative will include organizational adjustments and
layoffs across selected functions and locations. The adjustments are expected
to result in annualized reductions of approximately 15% in combined personnel
and other operating expenses and approximately 12% in capitalized development
costs, compared to the company's cost base for the last twelve months ended Q3
2025.

The measures are planned to be completed in February 2026 with full run-rate
effects from that point forward.

"Elliptic Labs has a strong and highly competent organization, and we greatly
value the contribution of our employees. This initiative is about focusing our
resources more clearly and organizing ourselves to support profitable growth
going forward. While these steps are difficult to take, they are necessary to
strengthen our foundation and position Elliptic Labs for the next phase," said
CEO Ola Sandstad.

Elliptic Labs will continue to deliver on and grow its established core
business with smartphones and laptops, which remain central to the company's
commercial foundation. At the same time, the company is positioning itself to
build a strong platform for expansion into additional verticals.

"Elliptic Labs has a highly skilled and dedicated organization, and the Board
and management remain deeply appreciative of the competence, commitment and
contribution of our employees. However, these initiatives represent necessary
and valuable steps forward for Elliptic Labs, reinforcing our financial
position and strengthening our ability to grow and create value over time,"
says Chairman of the Board, Svenn-Tore Larsen in Elliptic Labs.

For further information, please contact:
interim CEO Ola Sandstad, ola.sandstad@ellipticlabs.com
interim CFO Mathias Norderud, mathias.norderud@ellipticlabs.com

About Elliptic Labs
Elliptic Labs' AI Virtual Smart Sensor PlatformTM brings contextual
intelligence to devices, enhancing user experiences. Our technology uses
proprietary deep neural networks to create AI-powered Virtual Smart Sensors
that improve personalization, privacy, and productivity.

Currently deployed in nearly 1 billion devices, our platform works across all
devices, operating systems, platforms, and applications. By utilizing
system-level telemetry data to cloud-based Large Language Models (LLMs), the
AI Virtual Smart Sensor Platform delivers the unrivaled capability to utilize
output data from every available data source. This approach allows devices to
better understand and respond to their environment, making technology more
intuitive and user-friendly. At Elliptic Labs, we're not just adapting to the
future of technology -- we're actively shaping it. Our goal is to continue
pushing the boundaries of contextual intelligence, creating more intuitive and
powerful experiences for users worldwide.

Elliptic Labs is headquartered in Norway with presence in the USA, China,
South-Korea, Taiwan, and Japan. The company is listed on the Oslo Stock
Exchange. Its technology and IP are developed in Norway and are solely owned
by the company.

This information has been submitted pursuant to the Securities Trading Act §
5-12 and MAR Article 17. The information was submitted for publication,
through the agency of the contact persons set out above, at 2026-01-27 08:00
CET.

More information:
Access the news on Oslo Bors NewsWeb site

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