• $0.9m minimum contracted sales commitment by December 2027
• Three-year distribution agreement for Vection's AI/XR technology suite
• Strategic synergy merging SMARTENGINEERING's expertise with Vection's advanced capabilities

Vection Technologies Ltd (ASX:VR1, OTC:VCTNY) has announced a strategic partnership agreement with SMARTENGINEERING B.V., with a minimum contracted commitment of $0.9m in sales to accelerate the introduction of artificial intelligence ('AI') and extended reality ('XR') technologies within engineering design and technical training across the EU's industrial sector. Through this three-year collaboration, SMARTENGINEERING will have non-exclusive distribution rights to Vection's extensive AI and XR portfolio in the EU, with the agreement effective immediately and having no termination provisions. The multi-year agreement sets sales milestones of $0.1m by 31 December 2025, $0.35m by 31 December 2026, and $0.45m by 31 December 2027. As a reputable European mechanical and mechatronic engineering consultancy, SMARTENGINEERING plans to leverage Vection's advanced technologies to modernise design processes, enhance technical training, and deliver significant productivity improvements to clients in manufacturing, energy, oil and gas, and transportation. The synergy of technology, expertise, and market knowledge enables Vection and SMARTENGINEERING to lead disruptive digital transformation in Italy's industrial sector. This partnership also signifies a crucial step forward for Vection's broader goal of establishing recurring revenue through its subscription-based AI and XR solutions.

The partnership has a minimum contracted sales commitment of $0.9m by December 2027, with sales milestones of $0.1m by 31 December 2025, $0.35m by 31 December 2026, and $0.45m by 31 December 2027.

The partnership strengthens Vection's recurring revenue base and highlights both companies' shared commitment to long-term, sustainable growth through innovative, AI-driven industrial solutions in the EU market.