The subscription period in Image Systems AB's rights issue begins today and publication of information document

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, BELARUS, HONG KONG, JAPAN, CANADA, NEW ZEALAND, RUSSIA, SWITZERLAND, SINGAPORE, SOUTH AFRICA, SOUTH KOREA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR PUBLICATION OF THIS PRESS RELEASE WOULD BE UNLAWFUL OR REQUIRE ADDITIONAL MEASURES BEYOND THOSE REQUIRED UNDER SWEDISH LAW. PLEASE SEE "IMPORTANT INFORMATION" AT THE END OF THIS PRESS RELEASE.

Today, 21 August 2026, marks the start of the subscription period for Image Systems AB (publ)'s ("Image Systems" or the "Company") new share issue of approximately SEK 21 million with preferential rights for existing shareholders, which was resolved by the Board of Directors on 17 July 2026 and approved by the Extraordinary General Meeting on 12 August 2026 (the "Rights Issue"). The Rights Issue is fully secured through subscription undertakings from existing shareholders. The subscription period runs up to and including 4 September 2026. Note that some banks and custodians may apply an earlier response deadline for subscription in the Rights Issue. The Company is also publishing an information document regarding the admission to trading in connection with the Rights Issue.

Summary of the Rights Issue

• Those who, on the record date of 19 August 2026, are registered as shareholders in Image Systems will have preferential rights to subscribe for shares in the Company in proportion to their existing shareholding in the Company. Each existing share entitles to one (1) subscription right. Five (5) subscription rights entitle to subscription of two (2) new shares in the Rights Issue.
• The subscription price is SEK 0.60 per share. No commission will be charged.
• A maximum of 35,683,127 shares may be issued in the Rights Issue.
• The subscription period in the Rights Issue runs from and including 21 August 2026 up to and including 4 September 2026.
• Upon full subscription in the Rights Issue, the Company will receive issue proceeds of approximately SEK 21.4 million before issue costs.
• The Company has received subscription commitments from existing shareholders totalling approximately SEK 21.4 million, corresponding to 100 percent of the Rights Issue. The Rights Issue is thus fully secured.

Preliminary timetable for the Rights Issue

Information document
The Company has prepared an information document regarding the admission to trading of the securities issued in the Rights Issue, in accordance with Regulation (EU) 2017/1129 of the European Parliament and of the Council (the "Prospectus Regulation" and the "Information Document", respectively). The Information Document has been registered with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) and is available on the Company's website, imagesystemsgroup.se.
Advisors
Västra Hamnen Corporate Finance AB is acting as financial advisor and Advokatfirman Lindahl KB is acting as legal advisor to Image Systems in connection with the Rights Issue. Aqurat Fondkommission AB acts as issuing agent.

IMPORTANT INFORMATION
Publication, announcement or distribution of this press release may in certain jurisdictions be subject to restrictions. Recipients of this press release in jurisdictions where this press release has been published, announced or distributed should inform themselves of, and comply with, such restrictions. The recipient of this press release is responsible for using this press release and the information contained herein in accordance with applicable rules in each respective jurisdiction. This press release does not constitute an offer to, or invitation to, acquire or subscribe for any securities in the Company in any jurisdiction, either from the Company or from anyone else.

This press release is not a prospectus pursuant to Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (the "Prospectus Regulation") and no prospectus will be prepared in connection with the Rights Issue. This press release is also not an information document pursuant to Annex IX of the Prospectus Regulation and no information document will be prepared in connection with the Rights Issue. Each investor is urged to make its own assessment of the suitability of investing in the Company.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state or other jurisdiction in the United States, and may not be offered or sold in the United States (as defined in Regulation S under the Securities Act) absent an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with applicable securities laws. Neither this document nor the information contained herein constitutes or forms part of an offer to sell, or a solicitation to acquire, securities in the United States. No securities will be offered to the public in the United States. The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, in or into the United States, Australia, Belarus, Hong Kong, Japan, Canada, New Zealand, Russia, Switzerland, Singapore, South Africa, South Korea or any other jurisdiction where such announcement, publication or distribution of this information would be contrary to applicable rules or where such action is subject to legal restrictions or would require additional registration or other measures than those required under Swedish law.

In the United Kingdom, this press release is directed only at persons who are 'qualified investors' as defined under the UK Prospectus Regulation and who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) are persons falling within Article 49(2)(A) to (D) of the Order, or (iii) to whom it may otherwise lawfully be communicated. For these purposes, the term 'UK Prospectus Regulation' refers to Regulation (EU) 2017/1129 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018.

Within the European Economic Area ("EEA"), no offer of shares or other securities is being made to the public in any country other than Sweden. In other member states of the European Union ("EU"), any such offer may only be made in accordance with an exemption under the Prospectus Regulation.

This press release may contain certain forward-looking statements reflecting the Company's current views on future events and financial and operational development. Words such as "intends", "assesses", "expects", "may", "plans", "estimates" and other expressions implying indications or predictions regarding future development or trends, and which are not based on historical facts, constitute forward-looking statements. Forward-looking statements are inherently associated with both known and unknown risks and uncertainties, as they depend on future events and circumstances. Forward-looking statements do not constitute any guarantee regarding future results or development, and actual outcomes may differ materially from what is stated in forward-looking statements.

For further information, please contact:
Jan Molin
CEO
jan.molin@imagesystems.se

About Image Systems
Image Systems is a Swedish high-tech company and a leading provider of products and services in high-resolution image processing. By continuously challenging market concepts and instead offering new and more efficient solutions, we help our customers achieve greater success in their businesses. The company serves a wide range of industries globally and operates through two business areas: RemaSawco and Motion Analysis.
Image Systems has approximately 75 employees in several countries. In 2025, the group had a turnover of SEK 169 million.
The company’s share is listed on Nasdaq Stockholm’s Small Cap list and is traded under the ticker IS.
For more information, please visit our website: www.imagesystemsgroup.se