The Year 2021 Outlined

// Record revenue of $79.8 million, 10% growth from 2020

// Gross margins of 42% compared with 47% in 2020

// Adjusted EBITDA of $7.2 million compared with $15.6 million in 2020

// Revenue in 2021 totaled $79.8 million, an increase of 10% from 2020 ($72.8 million), mainly reflecting increased shipments of Gaming and Enthusiast products.

// Gross margin was 42% in 2021 compared with 47% in 2020. The change primarily reflects a weaker U.S. dollar, higher costs associated with the worldwide chip shortage and global supply chain disruptions.

// During the year, Asetek earned operating income of $0.8 million ($10.9 million) and Adjusted EBITDA of $7.2 million ($15.6 million).

// Asetek repurchased 400 thousand common shares during 2021 for a total cost of $4.8 million (844 thousand in 2020 for cost of $6.4 million). // In order to maximize the future profitability of its Data center business, the Company announced that it is exiting the High-Performance Computing (HPC) niche. Asetek plans to prioritize the general data center market and support legislation increasing adoption of its sustainable solutions, capitalizing on its liquid cooling technology and long-term investments in the segment. Asetek recorded a one-time charge of $1.7 million to operating expense in the third quarter of 2021 following this strategic change.

// Operational achievements during the year:

/ Asetek continued its success as the leading supplier of liquid cooling solutions for high-end computing, shipping 1.4 million sealed loop liquid cooling units in 2021, compared with 1.2 million shipped in 2020.

/ Asetek entered the fast-growing SimSports gaming market. To support this new venture, the Company acquired intellectual property and other assets from Finland-based Granite Devices, in addition to closing the late-2020 acquisition of JMH Gallows Pound Ltd, owner of the Ultimate Game Tech brand. With these two transactions, Asetek invested $10 million to advance its SimSports offering, including software, hardware, mechanical designs and operational proficiency. / In October, Asetek announced a licensing, marketing and product agreement with Pagani Automobili, the

Italian manufacturer of exclusive racing hypercars.

Asetek plans to custom design Pagani-licensed and branded SimRacing products that Pagani will market and sell through its channels.

/ The Company announced new products in the

Gaming and Enthusiast market:

/ Asetek is powering several new all-in-one coolers offered by ASUS, including its second-generation

ROG Ryujin line of CPU coolers, its new family of ROG

Strix LC II ARGB high performance CPU coolers, and its new liquid cooled NVIDIA GeForce RTX 3080 Ti graphics card. These offerings provide extreme performance and overclocking capability, silent operation and next-generation aesthetics.

/ Global gaming leader Razer introduced its first all-inone liquid cooling solutions, leveraging the superior thermal and acoustic performance and reliability of

Asetek’s advanced cooling technology. The Razer

Hanbo AIO liquid coolers provide advanced CPU overclocking capability, RGB lighting and virtually silent operation. / In November, the Company began accepting preorders for the first of its SimSports products – Invicta

Sim Racing Pedals – which include a throttle, brake pedal and add-on clutch pedal, along with its Race-

Hub software for quick and easy adjustments and calibration. This initial offering, available in early 2022, will provide competitive SimSports gamers with full immersion and the feeling of a real racecar.

/ Asetek continues to build its brand with gamers and enthusiasts. Co-branding with OEM customers has expanded the Company’s marketing reach, utilizing brand-behind-the-brand initiatives to feature the

Asetek logo on box packaging, websites, forums, and packaging inserts. Initiatives also include written features about Asetek on partners’ websites, participation in live events and live streams to communicate the commitment to performance, quality and reliability that the “Cooled by Asetek” mark represents.