Nortech Systems Announces Patent for Flexible Faraday Cage Printed Circuit Board and Cable

MINNEAPOLIS — (BUSINESS WIRE) — August 25, 2022 — Nortech Systems Incorporated (Nasdaq: NSYS) (the "Company"), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, announced this week that the US Patent Office has issued Patent No. 11,412,608, for the Company’s Flex Faraday Xtreme™, a flexible printed circuit for transmitting high frequency signals while precisely controlling both crosstalk and impedance, minimizing electromagnetic interference, improving parallel transmission alignment, and increasing data density. This work is based on the important work of Michael Faraday in the 1830s that contributed to our current understanding of shielding effects of what we now call a Faraday Cage.

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Nortech Systems' Flex Faraday Xtreme (FFX) is a flexible printed circuit for transmitting high frequency signals while precisely controlling both crosstalk and impedance, minimizing electromagnetic interference, improving parallel transmission alignment, and increasing data density. With FFX, Nortech provides intelligent transmission lines that provide benefits over traditional micro coax cables in challenging applications. (Photo: Business Wire)

Nortech Systems' Flex Faraday Xtreme (FFX) is a flexible printed circuit for transmitting high frequency signals while precisely controlling both crosstalk and impedance, minimizing electromagnetic interference, improving parallel transmission alignment, and increasing data density. With FFX, Nortech provides intelligent transmission lines that provide benefits over traditional micro coax cables in challenging applications. (Photo: Business Wire)

“Nortech’s commitment to innovative technologies is key to supporting our strategic medical, industrial, and defense customers,” said Jay D. Miller, Chief Executive Officer and President. “In highly complex and compact devices, the FFX is designed to provide the signal integrity necessary to support sensitive, mission-critical applications.”

“With our patent of the Flex Faraday Xtreme (FFX), Nortech provides intelligent transmission lines that provide benefits over traditional micro coax cables in challenging applications,” said Steve Czeck, Senior Director of Engineering. “FFX technology will be applied to meet customer requirements for size or weight constraints, or where harsh conditions exist.”

Both FFX and the recent Active Optical Xtreme™ product launch are early steps in the Company’s long-term pivot toward serving strategic customers by building higher level assemblies that contain advanced technologies and solve difficult connectivity challenges. Invented by Scott Blanc, Principal Engineer, FFX is the Company’s first patent in its technology portfolio. FFX adoption will ramp up through 2023 and will not have a material impact on Nortech's 2022 or 2023 financial results.

About Nortech Systems Incorporated

Nortech Systems is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech Systems primarily serves the medical, aerospace & 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 sales growth, margin expansion, improved positive cash flow, future financial results or trends in financial results, our ability to adjust pricing to combat inflation, our ability to work with customers and suppliers to overcome supply chain challenges, improving supply chain management, revenue and growth contributions due to of new products, technologies and innovations, backlog trends, customer demand, and steady improvement in production output. 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) engineering challenges with new products, technologies and innovations; (2) our ability to secure intellectual property rights with respect to new products, technologies, and innovations; (3) the impact of the COVID-19 pandemic on our customers, employees, manufacturing facilities, suppliers, the capital markets, and our financial condition; (4) supply chain disruptions leading to parts shortages for critical components; (5) volatility in market conditions which may affect market supply of and demand for the Company's products; (6) increased competition; (7) changes in the reliability and efficiency of operating facilities or those of third parties; (8) risks related to the availability of labor; (9) commodity cost increases coupled with our inability to raise prices charged to our customers; (10) general economic, financial, and business conditions that could affect the Company's financial condition and results of operations; (11) the Company's ability to steadily improve manufacturing output throughout the remainder of 2022. 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. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the United States Securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.



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