Nortech Systems Launches New Active Optical Xtreme (AOX™) Solution for Machine Vision and Factory Automation Uses

Nortech Systems Incorporated (Nasdaq: NSYS) (the “Company”) a global leader in specialized design and manufacturing solutions for complex electrical and electromedical components, announced this week the launch of its newest active optical technology platform, Active Optical Xtreme (AOX). AOX is a small form-factor hybrid solution providing power, control and data transmission across longer distances required for use in machine vision systems, factory automation, robotics, and intelligent sensing devices.

• Hybrid fiber optic and copper USB-C cable solution delivers power, control and data spanning longer cable lengths
• Improved bandwidth efficiency and data integrity compared to typical multi-cable solutions
• Ideal for applications requiring lightweight, small footprint, environmentally friendly, long-reach data-generating devices such as image capture, vision and geo-aware imaging systems

Requires Fewer Cables, Less Panel and Processor Space

AOX is a hybrid design technology that integrates transceivers, receivers and optical fiber within the cable to transmit significantly more data than an equal number of copper cables.

“AOX delivers the power of traditional copper cables, plus the high-quality data of fiber optics in a single cable,” said Jay D. Miller, Nortech’s CEO. “Nortech’s AOX technology is highly customizable and is designed to connect intelligent devices across longer distances in demanding environments such as automated factories.”

Designed to optimize power supply and data integrity across longer distances, AOX provides a very flexible and resilient spectrum of solutions. The embedded electronics are protected by rugged and durable connector and backshell arrangements. This single cable solution reduces design complexity and streamlines the supply chain when compared with congested multi-cable configurations.

Ideal for Customized, Complex Machine Vision Applications

“Rapid growth in edge computing demands long-reach data and power delivery. Our customers also understand the global ESG trend that requires reduced risk in an environmentally sustainable supply chain,” said Miller. “AOX is designed to help meet these challenges by incorporating fiber optics with reductions in copper content. Fiber requires far less energy to utilize throughout its lifecycle and eliminates the mining processes associated with copper, while offering significantly increased performance. Nortech is very excited about the opportunities these innovations provide.”

AOX adoption will ramp up through 2022 and will not have a material impact on Nortech's 2022 financial results. For information about AOX, please visit the Nortech Systems website.

About Nortech Systems Incorporated

Nortech Systems Incorporated is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech Systems primarily serves the medical, defense, and industrial markets. Its design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. Its manufacturing and supply chain capabilities are vertically integrated around wire/cable/interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has seven manufacturing locations and design centers across the U.S., Latin America, and Asia. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. Nortech's website is www.nortechsys.com.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 including without limitation statements regarding future financial results and our ability to develop innovative proprietary technologies for manufacturing methods and products. While this release is based on management's best judgment and current expectations, actual results may differ materially from those expressed or implied and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: (1) supply chain disruptions leading to parts shortages for critical components; (2) volatility in market conditions which may affect market supply of and demand for the company's AOX products; (3) increased competition for other Active Optical Cable (AOC) suppliers; and (4) Nortech’s ability to protect our AOX intellectual property rights. Some of the above-mentioned factors are described in further detail in the section entitled "Risk Factors" in our annual and quarterly reports, as applicable. You should assume the information appearing in this document is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since such date.

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