Steakholder Foods Shares Letter from CEO Arik Kaufman

Dear Shareholders,

As we commence 2025, I am writing to share our progress during what was both a demanding and transformative year for Steakholder Foods. Despite challenging local circumstances and global market uncertainties, we have achieved significant milestones in our commercialization journey and laid important groundwork for our future growth.

Commercial Progress

I am pleased to report that we have made substantial progress in our commercialization strategy. We secured our first purchase order from Bondor Foods for our SH™ –Fish premix blends in September, followed by an order from Wyler Farm for our SH™ – Beef premix blend, leading to the planned launch of the "WhaatMeat?! by Steakholder" product line. These agreements mark crucial steps toward establishing recurring revenue streams, which we anticipate will begin materializing in the near term.

Market Validation

Our technology and products received significant validation at the Plant-Based World Expo in London, Europe's largest plant-based exposition. We were honored to receive three prestigious awards:

·      Gold Award for our Salmon Patty

·      Silver Award for our Fish Kebab

·      Bronze Award for our Beef Alternative

Infrastructure Development

A key milestone this year was the opening of our first full-scale Demonstration Center. This state-of-the-art facility demonstrates our MX200 and HD144printers in a production environment, providing potential partners with firsthand experience of our technology's capabilities.

Strategic Partnerships

We have strengthened our global presence through several strategic collaborations:

·      Partnership with UMAMI Bioworks in Singapore for cultivated seafood development.

·      Agreementwith Vegefarm Co. Ltd. in Taiwan for our 3D printing technology.

·      Ongoing collaboration with ITRI, supported by SIIRD grant funding.

‍Research and Development

We continue to advance our core technologies:

·      Enhancing our Drop Location in Space (DLS) technology for alternative seafood applications.

·      Advancing ourFused Paste Layering (FPL) technology for meat alternatives.

·      Receiving USD490,000 in SIIRD grant funding for innovation in 3D-printed hybrid fish.

Financial Management

We maintain a disciplined approach to financial management while investing in strategic growth initiatives. With our first commercial agreements in place and ongoing discussions with potential partners, we are well-positioned to begin generating revenue in the coming months as these partnerships mature.

U.S. Market Entry Initiative

As we enter 2025, our primary strategic focus is establishing a strong presence and position in the U.S. market. We have recently appointed Saar Bracha, who brings many years of experience in the U.S. market development, to lead this crucial initiative, as well as signing an agreement to engage Nexum Group, a leading strategy development, strategic positioning and brand consulting firm, with a vast network in the U.S food industry.

Mr. Bracha and I have just completed an intensive two-week business development tour across the United States, engaging in promising discussions with potential partners and industry leaders, with the highlight having our plant-based meat prepared and served by celebrity chef David Burke in one of his New York City's known restaurant, to great acclaim.

Our U.S. market strategy encompasses:

1.     Establishing partnerships with leading food manufacturers and distributors.

2.     Developing products which are tailored to U.S. consumer preferences.

3.     Building a robust local supply chain and distribution network.

Looking Ahead

While 2024presented significant challenges, we have emerged stronger and more focused. Our commercial agreements, international recognition, and progress toward U.S. market entry, provides a solid foundation for growth in 2025. We anticipate that our current partnerships will begin generating revenue in the near term, marking an important milestone in our company's development.

I want to acknowledge our employees for their unwavering dedication during this challenging year. Their resilience and commitment have been extraordinary. Similarly, I thank you, our shareholders, for your continued support and trust in our vision.

We remain focused on our mission to transform the future of food production while building long-term shareholder value. I look forward to updating you on our progress during 2025.

Best regards,

Arik Kaufman

Chief Executive Officer

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