Arqit Quantum Inc.

Recent Important Developments

At the end of or shortly after the first half of the 2025 fiscal period, important developments occurred which merit highlighting.

●On 28 March, Arqit signed a contract associated with Arqit’s symmetric key agreement software embedded into a solution sold to the U.S. Department of Defense (DoD) for a funded program of record. The solution is in partnership with a large IT vendor to the DoD and was sold through one of Arqit’s established government sales channels. More details regarding the contract will be forthcoming. This is an important milestone for the Company as the contract represents Arqit’s first win with the DoD. The U.S. Department of Defense represents a significant market opportunity for Arqit. The Company believes that being compliant with the U.S. National Security Agency’s (NSA) Commercial Solutions for Classified (CSfC) program and now on a DoD program of record is validating as Arqit pursues additional opportunities in this critical target market.

●On 31 March, the Company signed a contract to integrate Arqit’s cryptographic technology into the enterprise and government security solutions of a large IT solutions provider. Arqit’s partner will create a sovereign capability securing edge, remote and deployed communications in mission-critical environments. Through our partner, Arqit sees opportunities for penetrating multiple vertical markets and geographies, particularly European government and defence markets.

●Arqit announced on 8 April that it had signed shortly before the close of the fiscal period a three year contract with a Tier 1 network operator that operates in 32 countries, providing secure digital infrastructure, with a fibre backbone spanning over 600,000 kilometres. The Company’s quantum-safe Arqit NetworkSecure™ technology will be deployed as part of the telecom network operator’s Network-as-a-Service (NaaS) suite which is now available for order by enterprises and governments. The network operator is already engaged with three significant end customers for the service.

The contract validates Arqit’s focus on the telecom networking sector as a key vertical market. It also provides a blueprint for the 10 telecom network operators with whom Arqit has been or is engaged in demonstration and test activity over the past twelve months. While it took approximately 12 months from initial engagement to commercialization of this contact, Arqit expects subsequent timelines with prospective telecom network operators to compress as a result of the experience.

●On 28 April, Arqit announced that the benefits of its quantum-safe Arqit NetworkSecure TM technology has been delivered to secure confidential computing. In collaboration with Intel, Arqit NetworkSecure TM running inside a Trusted Domain enclave created by Intel TDX brings the benefits of quantum-safe symmetric key security to sensitive workloads at the chip level. For more information regarding Arqit NetworkSecure TM running inside a Trusted Domain created by Intel TDX please visit the following link: https://arqit.uk/resources/press-release/arqit-delivers-quantum-safe-protection-enhanced-by-confidential-computing

Symmetric key cryptography securing data within the enclave at the chip level allows quantum-safe security between Intel TDXs. The architecture provides advanced data sovereignty by design. This collaboration opens a new opportunity for Arqit securing confidential computing which is a significant market. Applications include:

●In collaboration with Equus Compute Solutions and Intel, on 29 April Arqit announced the world’s first quantum-safe CSfC-Compliant MACP Architecture for Classified Mobile Communications secured by symmetric key agreement. The companies have worked together to successfully develop, demonstrate and validate a Mobile Access Capability Package (MACP) architecture that is compliant with the NSA’s Commercial Solutions for Classified program and resistant to threats from Quantum computing. This innovation introduces a quantum-secure, nested IPsec tunnelling configuration using Arqit SKA-Platform TM, strongSwan VPN, and the Intel NetSec Accelerator Reference Design with Intel Xeon D processor and Intel Ethernet Controller E810.

The announced collaboration further demonstrates Arqit’s leadership in developing quantum-safe mobile solutions, building upon Arqit’s other announced innovations in secure mobile communications, including Private 5G. Arqit’s leadership in mobile communications security innovation has been recognized with industry awards. The collaboration highlights Arqit’s compliance with the NSA’s CSfC security standards which is essential to address the U.S. National Security and Defence markets.

●The recent announced collaborations with Intel, plus a previously announced collaboration regarding quantum-safe throughput on 4th Gen Intel® Xeon® Scalable processor-based servers, result in joint efforts across secure mobile communications, confidential computing and server technology. Arqit is working jointly on further development of these integrated technologies and go-to-market strategies.

●The Board of Directors approved the following changes to the composition of the board, which were effective as of 20 May: Nick Pointon stepped down from the board but will continue in his role as Chief Financial Officer, Chief Executive Officer Andy Leaver was appointed to the board as a director, and existing director Garth Ritchie was appointed as Chairman of the Board.

●As of 22 May, Arqit has signed license contracts for its Arqit SKA-Platform TM across several of its targeted vertical markets, specifically telecom networks, governments and defence organizations. These markets are key near and medium term opportunities for the Company. The Company has visibility of additional contract opportunities that have or are moving through the demonstration and test cycle. Arqit’s contract base includes customers in the United States, Europe and the Middle East.