Hillcrest Energy Technologies provided an update to shareholders. Dynamic Load Bench Demonstration Success. Hillcrest announced the successful completion of dynamic load bench tests involving Hillcrest's cutting-edge 250-kilowatt, 800-volt SiC inverter with a prominent European Automotive Original Equipment Manufacturer (European OEM).

This momentous phase of testing evaluated the impacts of Hillcrest's revolutionary Zero Voltage Switching (ZVS) technology on a high-power dynamic load using a high efficiency motor of the European OEM and confirmed the integration of Hillcrest's technology with their motor. A live demonstration, attended by representatives of the European OEM, was hosted at Systematec GmbH's facility in Germany. The exceptional test results showcased a marked advantage in electromagnetic compatibility (EMC) characteristics and inverter efficiency.

The European OEM is currently analyzing the results and will propose the next phase of co-development activities in the coming weeks. The successful completion of this latest demonstration represents further validation of Hillcrest's technology and significant progress on this important opportunity for collaboration and future growth. Global Tier One Supplier Development Program.

The Company continues to make progress on the previously announced joint development project with a Global Tier One Automotive Supplier for a powertrain system that incorporates a customized version of the Hillcrest SiC traction inverter, which leverages Hillcrest's proprietary ZVS inverter technology to solve many common challenges faced by today's EV powertrains by enabling a reduction in overall vehicle weight, increased payload, and greater range capability. The Company announced completion of the first milestone in April 2023.