Update on strategic review of BVI segment and trading update

27 Jan 2026 16:31 CET

(Oslo, Norway, 27 January 2026) Reference is made to the stock exchange release
published by Hexagon Purus (the "Company") on 16 June 2025, in which the Company
announced an evaluation of strategic alternatives for its Battery Systems and
Vehicle Integration ("BVI") segment. The Company is today providing an update on
the status of the review and the operational and cost-related measures being
implemented with respect to the BVI segment.

Over the past decade, the Company has built an industry-leading battery-electric
mobility offering for the North American heavy-duty truck market, supported by
patented and proprietary technology covering key systems required for vehicle
electrification. Customer feedback on the Class 8 battery-electric truck
platform has been solid, and more recently the Company has entered into an
agreement with Hino Motors Sales U.S.A. Inc. relating to the delivery of Class
6 & 7 battery-electric trucks. These trucks will carry the Hino brand and made
available through Hino's extensive dealer network. To date, the Company has
delivered 27 battery electric class 6, 7 and 8 vehicles to Hino, which are
currently operating in customer hands or being demonstrated through Hino's
dealer network in daily commercial use.

The U.S. market for vehicle electrification has changed materially over the past
12 months. Increased regulatory and tariff uncertainty has weighed on near-term
demand, with fleet operators opting to prolong asset utilization and postpone
fleet replacements. While certain state-level incentives remain in place and
some fleet operators continue to pursue long-term decarbonization strategies,
the near-term demand is limited.

In response, the Company initiated a strategic review of the BVI segment in June
2025, evaluating a range of structural, partnership and transaction
alternatives. Given current market conditions, executing a value-accretive
transaction is not realistic. At the same time, the Company maintains the view
that fleet electrification will materialize and that the technology developed
has substantial medium to long-term value potential. The strategic review has
therefore recently focused on identifying solutions that preserve future
optionality at a materially reduced cost base.

As a result, the Company has today decided to scale back the BVI segment to a
minimum operating level. This includes a reduction of approximately 2/3 of the
workforce in the segment, with annual truck production capacity expected to meet
the projected demand following the restructuring. The remaining organization
will consist of approximately 25 individuals who have been instrumental in
developing the business and its underlying technology from inception, thereby
ensuring operational continuity and preserving the capability to scale up
activities when market conditions improve. The Company intends to consolidate
BVI operations at its Dallas facility, with the Ontario site planned to be
exited in March 2026 and the Kelowna facility planned to be wound down over
time. One-time restructuring costs related to the workforce reduction is
estimated to approximately USD 0.7 million and will be recognized in the first
quarter of 2026 accounts.

In parallel, the Company has recently received an order from Hino for an
additional 14 Class 6, 7 and 8 battery-electric trucks, with expected delivery
towards the end of the second quarter and the beginning of the third quarter of
2026. This order, together with the implemented cost reduction measures, is
expected to allow the BVI segment to be operated at close to cash-neutral levels
in aggregate through mid-2026. This is enabled by the fact that a substantial
portion of the required inventory is already on hand, thereby limiting the need
for additional working capital to complete the vehicles.

The Company will continue to closely monitor the performance and market
conditions of the BVI segment, actively assess the best path forward on an
ongoing basis, and continue to explore dialogues regarding potential strategic
and transaction-related opportunities. Hence, the strategic review will
continue.

The actions described above form part of a broader set of initiatives undertaken
by the Company to preserve liquidity and strengthen its financial position.
Further updates on these initiatives, as well as progress across the business,
will be provided in conjunction with the Company's fourth quarter and
preliminary full-year 2025 report to be published on 10 February 2026. In
advance of this reporting, the Company has decided to publish the below
preliminary, estimated and unaudited figures for the Group for the fourth
quarter of 2025. The figures reflect estimates as of the date hereof and may be
subject to change.

* Q4 2025 revenue of approximately NOK 468 million
* Ending Q4 2025 cash balance of approximately NOK 322 million
* Ending Q4 2025 order backlog of approximately NOK 728 million

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation. This stock exchange announcement was published by
Mathias Meidell of Hexagon Purus ASA on 27 January at 16:31 CET.

For more information

Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47?909 82 242 | mathias.meidell@hexagonpurus.com
(mailto:mathias.meidell@hexagonpurus.com)

About Hexagon Purus

Hexagon Purus enables zero emission mobility for a cleaner energy future. The
company is a world leading provider of hydrogen Type 4 high-pressure cylinders
and systems, battery systems and vehicle integration solutions for fuel cell
electric and battery electric vehicles. Hexagon Purus' products are used in a
variety of applications including light, medium and heavy-duty vehicles, buses,
ground storage, distribution, refueling, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com (http://www.hexagonpurus.com) and follow
Hexagon Purus on X and LinkedIn.

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