Tecnotree Oyj - Other information disclosed according to the rules of the Exchange

Tecnotree completes the global business rationalisation and personnel-related restructuring

Tecnotree Corporation Stock Exchange Release 6 May 2024 at 16.00 EEST

Following our global cost efficiency announcement on 28 March 2024, Tecnotree
has concluded its personnel-related restructuring, which started on March 14,
2024, and ended on May 02, 2024. This restructuring project encompassed
personnel in Finland, India, Middle East, and rationalising the non-telco
resources in North America, and has resulted in a total reduction of 116
employees.

In North America, Tecnotree terminated its TrustStar product offering to the
American mortgage market resulting in savings of EUR 1.5 million in sales,
marketing, and infrastructure expenses. The AI-ML resources working on TrustStar
have now been refocused to the telco BSS AI-ML activities globally. The
TrustStar business was an incubation business within CognitiveScale and its
closure does not have any impact on Tecnotree's revenue guidance.

Finally, Tecnotree is actively working on the in-sourcing of long-term
contractors, in low-cost Jurisdictions near its customers. While this may result
in increased headcount, it will impact opex positively by approximately EUR
200,000 in 2024.

The Opex impact of these efficiencies will result in cost savings of EUR 4.5
million in the year 2024 and further EUR 7 million in the year 2025.

The Company restates that this cost-cutting plan was in accordance with the
guidance published by the Company on 22 February 2024.

“As our Digital Stack achieves maturity in the market, we have been able
optimize our investments in R&D spend.  We have also rationalized our business
cost and operations in the United States of our TrustStar businesses.  As the
company seeks to grow in subscription driven economies of Middle-east, Europe
and North America, the company will look to add opex , in those regions, subject
to order wins.  For existing markets and customers, the need of the hour is near
shoring for effective agile delivery. This will further align our opex to where
our revenues are earned.” says Padma Ravichander, CEO Tecnotree OYJ.

Further information
Indiresh Vivekananda. CFO. tel. +971 56 410 8357

Tecnotree is a 5G-ready digital Business Support System (BSS) player, with AI/ML
capabilities and multi-cloud extensibility. Tecnotree is as No.1 on the TM Forum
Open API Conformance table with 59 Open APIs, and this is a result of our
pursuit towards delivering excellence and consistently providing differentiated
experiences and services to the CSPs and DSPs. Our agile and open-source Digital
BSS Stack comprises the full range (order-to-cash) of business processes and
subscription management for telecom and other digital services industries
creating opportunities beyond connectivity. Tecnotree also provides Fintech and
B2B2X multi-experience digital marketplace to its subscriber base through the
Tecnotree Moments platform to empower digitally connected communities across
gaming, health, education, OTT, and other vertical ecosystems. Tecnotree is
listed on Helsinki Nasdaq (TEM1V).

For more information, please visit www.tecnotree.com or social media channels -
LinkedIn I Facebook I Twitter

Attachments:

04301080.pdf