Desert Control Releases 2025 Year-End Report and Company Update

11 Feb 2026 07:07 CET

Sandnes, Norway, 11 February 2026 - Desert Control (OSE: DSRT), a leader in soil
and water conservation technology, today announces its 2025 year-end report and
unaudited financial results.

Operational Highlights:

·      Woodland Hills Country Club, Desert Control's first Pay-As-You-Save
(PAYS) client achieved significant irrigation savings and improved turf quality.
Savings and incentives exceeded USD 185,000 in the 2[nd] half of 2025,
underscoring the value of liquid natural clay (LNC).

·      Large-scale date and almond pilots in Arizona and California to evaluate
LNC's impact on water-use efficiency and yield performance continued as planned.
These trials have the potential to lead to significant new business with these
well-recognized clients as well as several of their peers.

·      The Company added experienced salespeople who are eager and motivated to
reach out to prospective customers in the US golf and agricultural markets to
present the benefits of LNC. The Company also added a permanent CFO. All of
these additions should lead to greater shareholder value creation over the long
-term.

Financial Highlights:

·      During the year, Desert Control strengthened its balance sheet through
the completion of a fully subscribed NOK 75 million rights issue, registered in
October. This capital raise strengthened the Company's equity position and
extended liquidity runway into the second half of 2026.

Revenue Outlook:

·      Revenue for the year grew year-over-year but was modest, reflecting the
structure of the PAYS contract.

·      Desert Control expects USD 2-3 million in revenues in 2026 based on
current business as well as unprecedented trialing activity and sales pipelines.
James Thomas, CEO of Desert Control, commented, "The global imperative of water
scarcity and rising costs as highlighted in recent reporting from the United
Nations as well as the LA Times is a glaring problem that LNC can help solve.
Our recent sales additions are making real progress in reaching prospective
customers."

EBITDA Performance:

·      Total operating expenses increased during the year but are expected to
remain level year-over-year in the current year.

·      The increase in 2025 primarily reflected higher field activity in the US,
scaling of production to support commercial deliveries.

·      Excluding one-time restructuring costs and higher spending to support
field activity and increased production units, the Company's underlying cost
base has remained broadly stable compared with prior years.

Net Result Impact:

·      Desert Control's net loss for the year was greater year-over-year. In
addition to US investments and restructuring activities, the strengthening of
NOK versus USD resulted in both realised and unrealised losses on USD
-denominated balances. These non-cash translation effects do not affect the
Company's underlying operations or liquidity position.

Equity and Cash Position:

·      These proceeds from the Company's rights offering significantly
strengthened liquidity and are expected to fund operations well into 2026,
supporting the Company's continued scale-up and commercialization agenda.

·      Cash and cash equivalents are sufficient to fund operations and
investments in future growth into the second half of 2026.

Year-End Report:

·       The information enclosed is subject to the disclosure requirements
pursuant to sections 5-12 of the Norwegian Securities Trading Act.

·       The report can be downloaded from the company
webpage: https://desertcontrol.com/investors/

·       A webcast presentation for Desert Control's Year-End 2025 Report and
Company Update will be held on Wednesday, 11 February 2026 at 13:00 CET.

·       Registration  https://desertcontrol.zoom.us/webinar/register/WN_Dn
-U5p49RWK1IgM1TtCnZg

For more information, please contact:

David Borah
Chief Financial Officer

david.borah@desertcontrol.com

About Desert Control

Desert Control develops innovative solutions to enhance soil health, conserve
water, and promote ecosystem resilience. Our proprietary Liquid Natural Clay
(LNC) allows sandy, fast-draining soils to retain water and nutrients, improving
soil health, crop yields, and ecosystem vitality while conserving water. Desert
Control provides customized solutions to strengthen sustainability,
profitability, and prosperity for agriculture, forests, and green landscapes. In
collaboration with partners and clients, we aim to preserve natural resources,
enhance food security, and ensure a climate-resilient future.

Cautionary Note

This release contains forward-looking information and statements relating to the
business, performance, and items that may be interpreted to impact the results
of Desert Control and/or the industry and markets in which Desert Control
operates. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "aims," "anticipates," "believes,"
"estimates," "expects," "foresees," "intends," "plans," "predicts," "projects,"
"targets," and similar expressions. Such forward-looking statements are based on
current expectations, estimates, and projections, reflect current views
concerning future events, and are subject to risks, uncertainties, and
assumptions, and may be subject to change without notice. Forward-looking
statements are not guarantees of any future performance, and risks,
uncertainties, and other important factors could cause the actual business,
performance, results, or the industry and markets in which Desert Control
operates to differ materially from the statements expressed or implied in this
release by such forward-looking statements. No representation is made that any
of these forward-looking statements or forecasts will come to pass or that any
forecasted performance, capacities, or results will be achieved, and you are
cautioned not to place any undue reliance on any forward-looking statements.

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