Decisionapproving the amount of state aid for the VIGO Photonics project

ManagementBoard of VIGO Photonics S.A. (_quot;Company_quot;, _quot;Issuer_quot;) informs that today itbecame aware of the European Commission's decision approving the amountof state aid for the Company's project implemented as part of theintegrated European project IPCEI ME/CT (Important Projects of CommonEuropean Interest in Microelectronics and Communication Technologies).

Thedecision of the European Commission approves the maximum level of publicaid in the project and does not mean that the Company has been grantedco-financing. The Commission assessed the proposed project under EUState aid rules and in particular the Communication on ImportantProjects of Common European Interest[1].

Thedecision on granting the Company co-financing and determining the finalamount of co-financing will be made as part of the competition procedureunder the European Funds for Modern Economy (FENG) programme. Entitiesfor which the European Commission has issued a positive decisionadmitting aid will be able to apply for co-financing. Information aboutthe selection of the Company's project to participate in the IPCEI ME/CTproject as the only Polish project was provided by the Company incurrent report No. 11/2021 of June 1, 2021. The date of announcement ofthe competition under the FENG program has not yet been set.

Theaim of the project is to develop and implement the technology ofintegrated photonic integrated circuits for detection in themid-infrared range, to build a complete production line for photonicintegrated circuits in the mid-infrared range and to create a completesupply chain for these systems. The project requires the development ofnew technologies, incurring significant investment and operationalexpenditures, as well as expenditures for the commercialization of newproducts on a dynamic market.

Thetotal value of eligible costs in the project is EUR 253.4 million, andthe maximum amount of state aid approved by the European Commission mayamount to EUR 102.9 million, which corresponds to the amount of theso-called financial gap in the project. Eligible costs in the projectare expenditures on research and development works, expenditures on theconstruction of a new production line and operating costs afterlaunching a new production line.

Theimplementation of the project is planned for 2023-2030 and consists oftwo phases:

-R_amp;D phase (2023-2027). The value of eligible costs in the R_amp;D phase isEUR 34.2 million.

-the FID (First Industrial Deployment) phase, i.e. the first industrialimplementation (2023-2030), including investments in a new productionline and implementation of new products for production, includingfinancing part of operating costs during implementation. The value ofeligible costs in the FID phase is EUR 219.2 million.

Afterthe end of the FID phase, it is planned to start serial production(after 2030), under which no public funding is provided for the project.TheCompany's Management Board anticipates that the eligible costs of theproject above the value of public funding will be covered from theCompany's own funds and equity, from debt financing and/or, inparticular in the FID phase, from other sources, such as strategicproject partnership and/or off-balance sheet financing in the projectfinance formula.

[1]Communication from the Commission Criteria for the analysis of thecompatibility with the internal market of State aid to promote theexecution of important projects of common European interest (2021/C528/02)