~$3.2m Order from Retelit Digital Services: Algho AI Certified as AI Platform for Italian Enterprise

Vection supplied and certified two dedicated AI units at Retelit's DC Avalon 3 data centre, making Algho the platform Retelit uses to deliver AI services to its business and government clients across Italy; order fully recognised in FY26

6 July 2026, Australia. Vection Technologies Ltd (ASX:VR1, OTC:VCTNY, FRA: S1X) ("Vection" or the "Company"), a leading provider of INTEGRATEDXR® and AI-powered digital transformation solutions, is pleased to announce a ~$3.2m order from Retelit Digital Services S.p.A., one of Italy's leading enterprise IT services companies. Vection supplied two Algho AI Appliances, dedicated hardware units running the Algho AI platform, installed at Retelit's DC Avalon 3 data centre. These appliances power the AI agent and AI model services that Retelit Digital Services offers to its business and government clients across Italy. Following a formal testing period completed on 30 June 2026, Retelit Digital Services has certified Vection as one of their go-to AI technology provider, meaning Algho is the platform on which Retelit builds and delivers AI services to its entire client base going forward. The order is fully recognised in FY26.

KEY HIGHLIGHTS

-      ~$3.2m order from Retelit Digital Services S.p.A., fully recognised in FY26, received upon successful completion of a formal appliance certification process at DC Avalon 3.

-      Two purpose-built Algho AI Appliances installed and certified at DC Avalon 3: a Core unit (dual NVIDIA H200) that runs Algho AI services for Retelit's enterprise clients at full production scale, and a Secondary unit (dual NVIDIA RTX 6000 Pro) that handles a higher volume of lighter AI tasks efficiently, keeping delivery costs down as Retelit serves many clients simultaneously.

-      Certification grants Vection AI provider status across Retelit Digital Services' full customer base: corporations, large enterprises, public administration bodies and SMEs throughout Italy. As Retelit takes AI services to those clients, Algho is the designated platform they build on.

-      Retelit S.p.A. is Italy's largest independent enterprise fiber network and the backbone of Italian enterprise connectivity. It has recently completed the integration of BT Italia and reached an agreement to acquire a 30% stake in Sparkle, TIM's international and military infrastructure subsidiary, taking it into areas directly aligned with Vection's active defence and security programme.

OVERVIEW

This announcement closes Vection's FY26 with a fourth consecutive order announcement in six weeks. The ~$3.2m order followed a formal testing period in which Retelit Digital Services installed the Algho Appliances in its live data centre environment and ran them against real enterprise workloads.

Passing that evaluation is what triggers the purchase order and awards Vection the reference provider designation: from this point, Algho is the AI platform on which Retelit builds and delivers AI services to its clients. Both the order value and its revenue recognition fall within FY26 as a direct result.

Retelit S.p.A. is Italy's largest independent enterprise fiber network operator: 47,000 km of fiber, 4,500+ connected enterprise sites, and the backbone connectivity for a significant portion of Italian corporate and public sector operations. Retelit Digital Services is the division that builds managed IT and digital services on top of that network, serving corporations, large enterprises, public administration bodies and SMEs. In early 2026, Retelit completed the acquisition of BT Italia (the Italian operations of British Telecom), expanding its enterprise client base. It then reached an agreement to acquire a 30% stake in Sparkle, TIM's international telecommunications subsidiary with infrastructure across military and government communications networks. These are exactly the kinds of environments where Vection already operates through its defence and security programme. Vection's Algho AI platform is now formally embedded as Retelit's reference AI technology at the moment Retelit is expanding into those sectors.

ALGHO APPLIANCE ARCHITECTURE

Vection supplied two dedicated AI units, each built around NVIDIA GPUs, and installed them at DC Avalon 3. The two units serve different but complementary roles: one handles the demanding, high-volume AI tasks that enterprise clients run at full scale; the other handles a larger number of lighter tasks at lower cost. Together they give Retelit the capacity to serve a wide range of client needs from a single installation.

The Core Appliance, fitted with dual NVIDIA H200 GPUs, runs the full Algho AI platform at production scale. This is the primary unit: it handles the complex, high-volume AI tasks that Retelit's enterprise and public sector clients run, including AI assistants and large AI model workloads that require significant processing power.

The Secondary Appliance, fitted with dual NVIDIA RTX 6000 Pro GPUs, is optimised for serving a large number of clients simultaneously at lower cost. It runs AI models in a compressed format that uses less computing power while still delivering quality results, which matters for a managed services business deploying AI across many enterprise clients at once.

Gianmarco Biagi, Managing Director & Executive Chairman, commented:

" Retelit ran our appliances in their live production environment, against real workloads, under their own technical standards. Passing that process is means Algho is now the designated AI platform for every AI service Retelit Digital Services takes to market."

"Retelit has spent 2026 extending its reach: completing the BT Italia integration, then securing a 30% stake in Sparkle, TIM's international and military telecommunications infrastructure. Sparkle operates in the same mission-critical environments where Vection already holds active defence and security engagements. We are closing FY26 with Algho formally embedded as the reference AI platform of an organisation expanding directly into those markets. We intend to be present as that expansion unfolds."

AUTHORISATION:

This ASX release is authorised by the Board of Directors of Vection Technologies Limited.

ENDS

INVESTOR RELATIONS CONTACT DETAILS:

Cameron Petricevic, Independent Non-Executive Director (Australia)

Email: cameron.petricevic@vection-technologies.com

Lorenzo Biagi, Executive Director (Europe)

Email: lorenzo.biagi@vection-technologies.com

Gianmarco Biagi, Managing Director & Executive Chairman (Europe)

Email: gianmarco.biagi@vection-technologies.com

ABOUT VECTION TECHNOLOGIES:

Vection Technologies is a global technology company specialising in Extended Reality (XR) and Artificial Intelligence. We design integrated digital ecosystems that combine XR, AI and 3D data to transform how enterprises train people, design products, support operations and engage customers. Vection's fully-owned product portfolio includes INTEGRATEDXR®, the Algho AI platform, and the Vection phygital hardware range.

Vection Technologies is listed on the Australian Securities Exchange (ASX) with ticker code VR1, trades on the U.S. over-the-counter (OTC) markets under the symbol VCTNY and is listed on Germany's Frankfurt Stock Exchange under the ticker S1X.

For more information, please visit: www.vection-technologies.com

FORWARD-LOOKING STATEMENTS:

Certain statements made in this release are forward-looking statements. These statements are not historical facts but are based on Vection Technologies' current expectations, estimates and projections about the industry in which the Company operates, and on management's beliefs and assumptions. Forward-looking statements can generally be identified by the use of words such as 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'will', 'could', 'may', 'target', 'plan' and similar expressions. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Vection Technologies. The Company cautions shareholders and prospective investors not to place undue reliance on these forward-looking statements, which reflect the view of Vection Technologies only as of the date of this release.