Netlist (NLST) Investor update summary

Strategic alliance overview

• Announced a five-year strategic alliance with Samsung, including a major patent portfolio cross-license, memory product supply, technology cooperation, and Samsung taking an equity stake through the purchase of 10 million shares.

• The agreement validates the importance of patented server DIMM and high-bandwidth memory technologies foundational to AI computing, with Samsung gaining access to these technologies.

• All pending legal actions between the parties will be settled and mutually released.

• Further transaction details are available in a concurrently filed Form 8-K.

Financial and supply terms

• Netlist will receive an upfront license fee of $200 million net ($239 million gross) and up to $750 million net ($897 million gross) in aggregate license fees over five years.

• Samsung will supply up to $300 million of memory products annually, totaling up to $1.5 billion over five years, including DRAM and NAND for proprietary and resale products.

• Samsung will purchase ten million shares of common stock, aligning interests and strengthening the partnership.

Legal and intellectual property developments

• The agreement includes settlement and release of pending legal proceedings between the parties.

• Netlist will continue to defend its patents in other Federal Circuit and IPR proceedings involving third parties.

• Samsung will provide information and declarations for Netlist's future ITC actions against third parties.