The Recent Qualcomm Transaction Boosts Sequans' Capacity to Serve Customers and Further Develop its Massive IoT Roadmap

PARIS, FRANCE - Newsfile Corp. - 1 October 2024 - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, announced today that, following the closing of its transaction with Qualcomm Technologies, Inc. ("Qualcomm"), a subsidiary of Qualcomm Incorporated, it will focus its future investments on addressing the Massive IoT market opportunity with its 4G products and 5G roadmap. A joint press release issued yesterday with Qualcomm announced the successful closing of the sale of Sequans' 4G IoT technology assets to Qualcomm. Under the terms of the agreement, Sequans retains a perpetual license to continue using, commercializing, and advancing its 4G IoT technology. The Company received $182 million in cash, with $172 million received on September 30 and up to an additional $10 million following the completion of a one-year warranty period. The remaining $18 million, of which $15 million was received under the pre-transaction manufacturing license agreement executed in June 2024 and $3 million was received under a bridge loan in September 2024, has been credited toward the $200 million purchase price. Sequans reaffirms the decision made in June to focus investments on supporting its 4G LTE-M/NB-IoT and Cat 1bis product line, while developing its product roadmap towards low-power 5G variants for Massive IoT, specifically RedCap and eRedCap, to provide Massive IoT customers with a seamless migration path from 4G to 5G IoT technologies. Georges Karam, CEO of Sequans, commented, "With a strengthened balance sheet, our proven technology, and a comprehensive portfolio that includes low-power LTE-M/NB-IoT, LTE Cat 1bis, and the forthcoming 5G RedCap and eRedCap technologies, Sequans is now stronger and uniquely positioned to lead the market. Backed by a dedicated team of experts in cellular IoT, we are committed to delivering best-in-class products and services." Industry Testimonials Tom Deitrich, CEO of Itron, which uses Sequans Monarch LTE-M/NB-IoT technology for Grid Edge Intelligence infrastructure and endpoints, commented, "This transaction dramatically strengthens Sequans' ability to deliver cutting-edge technology at scale, which is crucial for Itron. Sequans is a strategic partner, allowing Itron to increase the value we can create for our customers and all stakeholders." Derek Luke, COO of Geotab, which uses Sequans Calliope LTE Cat 1bis technology for connected vehicle and asset solutions, commented, "Sequans has always been a technology leader, especially with the first LTE Cat 1bis technology for North America. Sequans is a trusted partner of Geotab, providing us with exceptional support. They are now set to become an industry leader in IoT." Cameron Coursey, Vice President - AT&T Connected Solutions, commented, "We are extremely pleased to see this transaction close. Sequans has been at the forefront of Cat 1bis and LTE-M technology, and we are enthusiastic about their upcoming innovations in 5G IoT with RedCap and eRedCap." Dan Shey, Vice President at ABI Research, a global technology market research firm, commented, "This transaction redefines the competitive landscape in cellular IoT technology. The 4G intellectual property developed by Sequans is now poised to become a cornerstone of the mass market IoT industry, utilized by both Qualcomm and Sequans."

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About Sequans Communications

Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China. Sequans investor relations: Kim Rogers (USA), +1 385.831.7337, ir@sequans.com Sequans media relations: Linda Bouvet (France), +33 1 70 72 16 00 media@sequans.comForward Looking Statements This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including our business following completion of the transaction. These forward-looking statements include, but are not limited to, statements regarding the satisfaction of conditions to the completion of the proposed transaction and the...