To achieve a more efficient and agile organization, Azelio has decided to transform its organization and give notice to the Swedish Public Employment Service regarding 100 employees. The transformation is estimated to reduce costs by approx. SEK 150 million on an annualized basis.

Since Jonas Wallmander assumed the CEO position on March 30, 2022, the board and management have carried out a thorough strategic review of the company and its operations. The review has been carried out in light of the current market situation and the demands the market puts on new innovative products, such as operating data from local systems.

The first step of this review resulted in new operational goals, including revised sales targets, and a number of initiatives aiming to create a stronger focus and greater efficiency in operations, as well as a tighter cost control. The new goals and initiatives were communicated on May 11, 2022 in conjunction with the interim report for the first quarter.

The second step in the strategic review announced today, is to introduce new, more efficient and agile organizational principles to deliver on the new goals. To execute on the strategy, Azelio today submits a notice to the Swedish Public Employment Service regarding 100 employees. The company aims to implement the bulk of the transformation during the third quarter of 2022.

“Azelio has a great product that can play a key role in speeding up the global transition to renewables. To turn it into reality, we need to focus,” says CEO Jonas Wallmander. “I am deeply grateful to everyone who has contributed on our journey.”

The transformation will affect the previously announced capital need. The company estimates that the capital need will be SEK 250-400 million, compared to the previously communicated SEK 300-500 million.

For more information please contact:

CEO Jonas Wallmander

Tel: +46 708 870878

Email: ir@azelio.com

About Azelio

Azelio specializes in energy storage with the production of electricity and heat. The technology is revolutionary in that the energy becomes controllable, which can make renewable energy available around the clock. The energy is stored in recycled aluminium from where it is converted into electricity and heat with a total efficiency of up to 90 per cent if necessary. The solution is scalable, environmentally friendly and cost-effective from 0.1 MW up to 20 MW. Azelio has about 200 employees with headquarters in Gothenburg, production in Uddevalla and development centers in Gothenburg and Åmål, as well as presence in Stockholm, Brisbane, Cape Town, Madrid and Ouarzazate. Azelio's share is traded on Nasdaq First North Growth Market with FNCA Sweden AB as Certified Advisor: 08-528 00 399,info@fnca.se. More information about Azelio:www.azelio.com

This is information that Azelio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 CET on June 9, 2022.