Palladyne AI Achieves Breakthrough Flight Milestone With First Flight of IntelliSwarm: Palladyne AI's SwarmOS Autonomous Swarming Software Integrated Into Its BRAIN X2 Flight Computer

Rapid Three-Week Integration of SwarmOS and BRAIN X2 Enabled First Flight of IntelliSwarm on Palladyne Defense's Banshee Loitering Munition Platform

IntelliSwarm Flight Milestone Validates Decentralized Edge Autonomy and Accelerates Delivery of IntelliSwarm to UAS and Attritable Munitions OEMs

Palladyne AI Corp. (NASDAQ:PDYN) ("Palladyne AI"), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced the successful flight test of IntelliSwarm, the integrated autonomy stack combining its SwarmOS autonomy software with its BRAIN X2 Guidance, Navigation and Control (GNC) flight computer, demonstrated for the first time on Palladyne Defense's Banshee loitering munition platform and in autonomous collaboration with Red Cat (NASDAQ:RCAT) drone platforms.

Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented: "IntelliSwarm is flight-proven technology today - not a future concept. This successful integration fundamentally changes what's possible and economically viable in AI-enabled unmanned systems. Demonstrating IntelliSwarm on our Banshee platform, while collaborating with Red Cat drone platforms, showcases our vertical integration, rapid execution, and commitment to delivering battlefield advantages. For defense customers and UAV manufacturers, IntelliSwarm provides the foundational autonomy layer to accelerate next-generation swarming while reducing costs, speeding deployment, and enabling decisive edge performance in denied domains."

This milestone represents the inaugural flight of Palladyne AI's IntelliSwarm autonomy stack, deployed on its proprietary Banshee mini-bomber UAV concept, which autonomously collaborated with drones from Red Cat. Building on prior SwarmOS demonstrations with third-party UAV platforms, this test validates the combined, tamper-proof edge-AI solution in a real world, heterogeneous multi-vehicle scenario and represents a pivotal step in advancing both IntelliSwarm and Banshee towards operational readiness.

IntelliSwarm results from the rapid, three-week integration of Palladyne AI's patented SwarmOS autonomy software with its NDAA-compliant BRAIN X2 edge-AI avionics. By integrating GNC with autonomous swarming capabilities into a single, unified stack that embeds perception, decision-making, flight control, and coordinated behavior at the edge, Palladyne Defense is delivering real-time performance in GPS- and communications-denied environments.

Unlike centralized command or homogeneous fleet approaches, IntelliSwarm enables platforms from different manufacturers with varying roles, payloads, and performance characteristics, to autonomously operate as intelligent, collaborative peers within a secure mesh network. This decentralized design supports graceful degradation, mission resilience, alignment with DoD open-systems requirements, robust security, and operator oversight.

Palladyne Defense's Banshee is a next-generation reusable mini-bomber UAV concept purpose-built for modern contested warfare, emphasizing autonomy, affordability, and resilience. It provides precision effects with a cost per effect that is substantially lower, while offering greater autonomy, reusability and mission resilience than low-cost FPV (First Person View) drones.

"By natively integrating SwarmOS with BRAIN X2 we've created a seamless stack for embodied intelligence, precise flight control, and heterogeneous coordination," said Dr. Denis Garagić, Chief Technology Officer of Palladyne AI. "This allows platforms of any design, mission, or origin to function as a unified, adaptive force—achieving levels of interoperability and resilience that were previously out of reach."

Palladyne AI expects IntelliSwarm to serve as a core building block for current and future unmanned programs, with plans to make it available to other UAS and attritable munitions OEMs once fully tested and commercialized. Every UAV or attritable munition equipped with IntelliSwarm will seamlessly communicate with others as part of a collaborative autonomous network, enhancing scalability and operational effectiveness across diverse systems.

For more information about Palladyne AI, including GuideTech and Palladyne Defense, please visit www.palladyneai.com.

About Palladyne AI

Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced UAV engineering services, and precision-manufactured components for defense and industrial markets. Palladyne AI delivers secure, American-developed and operated platforms designed to meet the stringent requirements of U.S. government and public-sector customers, including data sovereignty, security, and compliance.

Palladyne AI's embodied AI is designed to operate in complex, contested, and high-risk environments, enabling distributed tasking, human-on-the-loop decision-making, degraded-communications resilience, and multi-domain coordination. Its platform-agnostic autonomy stack combines real-time sensor fusion, adaptive AI models, and edge-native orchestration—without vendor lock-in—to support autonomous and collaborative systems across air, ground, maritime, and industrial domains where performance, resilience, and trust are paramount. For more information about Palladyne AI, including GuideTech and Palladyne Defense, please visit www.palladyneai.com.

Palladyne Defense

Palladyne Defense is Palladyne AI's division positioned as a mid-tier U.S. technology prime defense contractor. Palladyne Defense bridges innovative autonomy, practical engineering, and American production to bring intelligent systems into active service—faster, safer, and more cost-effectively than legacy approaches. With U.S.-based manufacturing, Palladyne Defense delivers software, components, subsystems, and complete loitering munition systems aligned with the Department of War's growing demand for cost-effective, rapidly deployable, and domestically produced defense technologies.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the capabilities or future capabilities of Palladyne AI's technology and related products, including IntelliSwarm; the benefits of its AI software and other products and the markets for its products and services; and the applicability of IntelliSwarm and its autonomy software to different kinds of machines (such as UAVs, UGVs and ROVs); future development and qualification plans; incorporation of IntelliSwarm into unmanned programs and adoption by defense customers; intended future target customers; the extent of interoperability with disparate platforms; and ability to scale production at expected costs. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends" or "continue" or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Palladyne AI's management's current expectations and beliefs, as well as a number of assumptions concerning future events. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Palladyne AI is not under any obligation and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Readers should carefully review the statements set forth in the reports which Palladyne AI has filed or will file from time to time with the Securities and Exchange Commission (the "SEC"), in particular the risks and uncertainties set forth in the sections of those reports entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements," for a description of risks facing Palladyne AI and that could cause actual events, results or performance to differ from those indicated in the forward-looking statements contained herein. The documents filed by Palladyne AI with the SEC may be obtained free of charge at the SEC's website at www.sec.gov.

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Palladyne AI Investor Contact:

Brian S. Siegel, IRC®, M.B.A.

Senior Managing Director

Hayden IR - Chicago

(346) 396-8696 (o)

[email protected]

[email protected]

Palladyne AI Press Contact:

Heath Meyer

(858) 768-1527

[email protected]