The Management Board of MBF Group S.A. with its registered office inWarsaw (the 'Issuer', 'Company'), with reference to ESPI current reportNo. 43/2025 of 4 September 2025 concerning the conclusion of a strategicconsortium agreement for the development and implementation of UAVtechnology, C-UAS and unmanned transport systems ('Consortium'),announces the launch of the third and final project of the Consortium -ARES (Artillery Realistic Engagement Simulator).

The ARES project complements two previously launched Consortium projects- IRYDA Plus (drone interception and neutralisation system) and MALLARD(unmanned cargo transport platform) - creating a coherent, three-pillardevelopment structure covering combat, logistics and training andsimulation technologies. The Issuer's Management Board emphasises thatamong the many agreements and arrangements concluded in recent months aspart of unmanned projects, the decision to launch the ARES project wasconsidered particularly important due to its significance for thedevelopment of the technological and industrial competences of theCompany and the Consortium.

The ARES project is an advanced FSTD (Fire Support Training Device)training system designed to modernise and upgrade barrel and rocketartillery training. The system enables the improvement of skills inconditions that cannot be replicated during classic field exercises,including fire planning, sub-unit coordination, reconnaissance andtactical cooperation.

At the heart of the system is a NATO-compliant simulation environmentused by the armed forces of the USA, Canada, Australia and the UnitedKingdom, among others. The ARES project is based on the VBS (VirtualBattlespace) platform, which provides a realistic and dynamicrepresentation of the battlefield, including terrain animation, weatherconditions, combat equipment characteristics, personnel behavioursimulation and fire effects. The use of the open VBS environment allowsfor virtually unlimited expansion of the system, including the creationof custom combat scenarios, training extensions and integration withC2/C4 command systems.

ARES enables full integration of artillery scenarios with the activitiesof other subunits - mechanised, armoured, engineering, and ultimatelyalso with other types of armed forces. The system provides the abilityto simulate artillery cooperation within larger combat groups, whichsignificantly increases the realism of training and its compliance withthe actual operational environment. In the opinion of the ManagementBoard, ARES is a strategic tool for increasing combat readiness throughrealistic battlefield simulation, with a significant reduction in costscompared to traditional field exercises. The Issuer expects that thefirst demo version will be presented to military and industrial partnersin the first half of 2026.

Market analyses conducted by the Issuer show that the global market forsimulation and training systems for the armed forces reached a value ofapproximately USD 13 billion in 2022, and according to Grand ViewResearch, the projected growth until 2030 is 4.7% per annum. In theground segment, which includes artillery trainers and other fire supportsystems, there is particularly strong demand in NATO member states andcountries modernising their armed forces, indicating the high popularityof this type of training solution.

In the opinion of the Management Board, ARES has very highcommercialisation potential - not only in Poland, but also in foreignmarkets, including Central Europe, the Balkans, Scandinavia and NATOpartner countries. The project develops the Issuer's competences in theareas of dual-use technologies, simulation, XR and integrated trainingsupport systems, strengthening the position of MBF Group S.A. as anentity offering comprehensive solutions for the defence, security andcritical infrastructure sectors.

The Issuer considers this information to be confidential within themeaning of Article 17(1) of MAR, due to its significance for theimplementation of the Company's development strategy and its potentialimpact on the Company's future financial results, market value andcontract acquisition opportunities.