CEO Letter- Aquarius Engines Ltd.

Discusses recent developments in the company and goals going forward

TEL AVIV, Israel, Feb. 12, 2025 /PRNewswire/ -- Aquarius Engines (TASE: AQUA)

Dear Shareholders,

Thank you for your support of the company, its technology, and the vision of a clean, pollution-free world.

In December 2024, the company's management was replaced. Together with employees in Japan, Germany, Poland, and Israel, we underwent a process of organizational and financial restructuring. The company has entered into an investment agreement to raise approximately $10 million, and we are currently in the process of additional fundraising, which, upon completion, will ease the company's operational plans. Additionally, Aquarius has begun adapting its financial reports, selected a legal team, and is working towards listing its shares for trading on Nasdaq.

All these steps are aimed at supporting the production and distribution of the Aquarius Generator as early as this year.

The Aquarius generator is 1.2 meters long and 0.8 meters wide (euro pallet size), powered by LPG, and is expected to operate on CNG and hydrogen in the near future. This unit provides 150 kW and is significantly smaller than competing products. Moreover, the Aquarius product is modular, allowing multiple units to be connected to achieve higher capacities, with remote monitoring and control capabilities.

The company's technological development is based on a decade of research, tens of thousands of engineering hours, and an investment of over $120 million. The company holds dozens of registered patents.

The first generators are intended for demonstrations and field trials expected to take place this year with leading global customers. These products will initially operate on LPG, with future options for CNG and hydrogen. The system's size and weight make it suitable for deployment in challenging locations such as airports, parking lots, ports, and data centers—these being the first markets where the system is expected to be installed.

The first systems are designated for the electric vehicle charging market and will be installed for one of the world's largest car rental companies, fleet operators with over a million vehicles, and at the Port of Long Beach to support the energy needs of the port's electrification (cranes, transport vehicles, etc.).

Aquarius developed a generator based on a linear engine (16 kW) designed for the telecom market for dense 5G deployment. However, the COVID-19 pandemic, rising interest rates, and other factors slowed the deployment, changing procurement plans as the market shifted to higher power capacities and delayed the transition to green fuels. Consequently, these markets have been given secondary priority in the company, with a current focus on markets with rigid demand.

Aquarius has not abandoned its additional target markets—light aviation engines and charging systems for marine vessels. However, at this time, Aquarius is focusing on the successful production and deployment of the 150 kW Aquarius generator.

We are determined to achieve the goals we have set and greatly value the trust you, our shareholders, have in us. Your investment is not taken for granted, especially during challenging times like these, and we truly appreciate it.

As CEO, I see myself and the entire company as committed to its success and to creating value for our investors.

It is important to emphasize that the continued development of the company and the realization of its business strategy depend on fundraising, which is uncertain. The company's forecasts and plans detailed above—including the completion of the $10 million investment agreements, additional fundraising efforts, successful registration of the company's shares on Nasdaq, the timing of field trial demonstrations for the generators, international distribution success, and future developments—constitute forward-looking information as defined by the Israeli Securities Law, 1968. These projections are based on current data available to the company's management as of this date, and their realization depends on factors beyond the company's control. Therefore, these estimates may materialize differently or not at all.

Sincerely,
Gal Fridman
Founder and CEO

About Aquarius Engines Ltd.

Aquarius Engines is an energy company developing and manufacturing small-scale power generation engines based on groundbreaking technology. The company holds approximately 44 registered patents in the U.S. and beyond, with an additional 43 patents in the registration process.

Aquarius has been traded on the Tel Aviv Stock Exchange since December 2020. Its shareholders include, among others, Japanese Tier 1 automotive companies such as TPR, a leading piston manufacturer, and MUSASHI, partially owned by Honda, as well as major institutional investors in Israel.

The Aquarius engine is a small, lightweight engine with only one moving part, offering high power output and efficiency relative to its size and weight. This, combined with its ability to operate on a wide range of synthetic and green fuels, provides a significant competitive advantage. The company's initial target market is the telecom sector, collaborating with leading companies in the backup power industry for telecom towers. Aquarius' green generator, based on its core technology, can run on various fuels such as hydrogen, E85 ethanol, methanol, and LPG.

Looking ahead, Aquarius plans to supply its engines for truck power units, aviation, marine, and defense applications, as well as range extenders for the automotive industry. The company operates research and development centers in Israel, Germany, Japan, and Poland.

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Contact: [email protected]

SOURCE Aquarius Engines