Live multi-domain exercise exhibited autonomous capabilities for modern Army combat operations at the edge and integrated with the Army's Next-Generation Command and Control prototype ecosystem

Palladyne AI (NASDAQ:PDYN), 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 that SwarmOS and Gremlin-X participated in a live Army exercise during Ivy Mass, a 4th Infantry Division multi-domain fire support and command-and-control exercise. Ivy Mass brings together thousands of troops and serves as a testing ground to merge traditional Army combat skills with modernized, digital command systems, data networks, and upgraded operational architectures.

During Ivy Mass, Palladyne AI integrated its SwarmOS embodied AI software with the Army's Next-Generation Command and Control (NGC2) prototype ecosystem in a live, operationally relevant exercise environment, enabling a single operator to control multiple OEM Intelligence, Surveillance, and Reconnaissance (ISR) drones simultaneously. Alongside the Palladyne AI Gremlin-X reusable mini-bomber drone, the exercise showcased Palladyne AI's ability to support distributed, multi-platform autonomous operations at the edge, including cross-platform UAV collaborative, decentralized decision-making in communications-constrained environments, real-time mission adaptation, and single-interface command and control designed to reduce operator burden and accelerate mission execution.

SwarmOS demonstrated resilience by running on size-, weight-, and power-constrained drone compute hardware in communications-contested environments, without cloud dependency. It also proved its operational simplicity in the field by reducing the operator's burden. With minimal training, a single soldier can command multiple drones, shifting attention from managing the technology to executing the mission — turning one set of eyes into a coordinated, multi-sensor view of the battlespace.

"We cleared a fundamental technical threshold for battlefield autonomy," said Dr. Denis Garagić, Chief Technology Officer and co-founder of Palladyne AI. "SwarmOS operated in communications-contested environments and enabled a heterogeneous fleet of drones to autonomously adapt in real time within the Army's own command-and-control ecosystem."

"Ivy Mass put our autonomy stack in the hands of the soldiers who could use it on the battlefield," said Doug Dynes, President of Palladyne Aerospace and Defense. "We enabled a single operator to command a mixed swarm of ISR drones and our Gremlin-X mini-bomber, stream live target tracks into the Army's Next-Generation Command and Control prototype ecosystem, and compress the sensor-to-shooter timeline. SwarmOS delivered a faster, more lethal kill chain, field-ready today, for the exact mission set the Department of War is investing in."

Through direct end-user engagement, live exercise participation, and integration with the Army's Next-Generation Command and Control prototype ecosystem, Palladyne AI's autonomous capabilities have been demonstrated against the operational requirements the Army is actively defining, making a meaningful step toward operational force inclusion and follow-on Department of War programs.

As global defense priorities shift toward distributed, resilient, and cost-effective force multipliers, Palladyne AI's decentralized embodied collaborative AI platform is built to meet that demand.

For more information about Palladyne AI and its artificial intelligence software for robotic platforms, 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, and autonomous systems 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 to support autonomous and collaborative systems across air, ground, maritime, and industrial domains. For more information about Palladyne AI, including GuideTech and Palladyne Aerospace and Defense, please visit www.palladyneai.com.

About Palladyne Aerospace & Defense

Palladyne Aerospace & Defense is Palladyne AI's division positioned as a mid-tier U.S. technology prime defense contractor. Palladyne Aerospace and 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 Aerospace and 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 potential operational force inclusion of SwarmOS by the U.S. Army; potential inclusion of SwarmOS in follow-on Department of War programs; future U.S. defense priorities; and the capabilities or future capabilities of the Company's AI technology and related products. 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)

brian@haydenir.com

IR@palladyneai.com

Palladyne AI Press Contact:

Heath Meyer

(858) 768-1527

PR@palladyneai.com

Palladyne AI Deploys True Autonomy Drone-Swarming Software, SwarmOS™, During U.S. Army 4th Infantry Division Ivy Mass Exercise