Zyxel Holdings Announces NT$315 Million Capital Increase in Turkish Subsidiary via its Subsidiary

Date of Announcement: 2026/05/19 Company Code: 3704 Company Name: Zyxel Holdings Subject: Announcement on behalf of subsidiary Zyxel Communications Corp. regarding the capital increase for Zyxel Iletisim Teknolojileri A.S.

1. Name and Nature of the Underlying Asset: Equity shares of Zyxel Iletisim Teknolojileri A.S. 2. Date of Occurrence: 2026/05/18 3. Board of Directors Approval Date: 2026/05/18 4. Transaction Volume, Price, and Total Amount: - This capital increase does not add to the number of shares held. - Total amount: Approximately NT$315,000 thousand. 5. Counterparty and Relationship to the Company: A subsidiary held by Zyxel Communications. 6. Explanation for Related Party Transaction: - Counterparty: Zyxel Iletisim Teknolojileri A.S. - Relationship: A substantive related party (a 100% directly owned subsidiary of Zyxel Communications). 7. Payment Terms and Contractual Restrictions: - Capital injection expected to be completed in June 2026. 8. Decision-Making Process and Basis for Price Determination: - Resolved by the company's Board of Directors. 9. Cumulative Holding Status (including this transaction): - Volume: 5 shares. - Amount: Approximately NT$712,929 thousand. - Ownership Percentage: 100%. - Rights Restrictions: None. 10. Ratio of Investment to Total Assets and Parent Company's Equity, and Working Capital Amount (from latest financial statements): - Ratio to Total Assets: 5.16% - Ratio to Equity Attributable to Owners of Parent: 6.04% - Working Capital: NT$2,294,302 thousand. 11. Specific Purpose of Acquisition or Disposal: - Long-term investment. 12. Dissenting Opinions from Directors: - None. 13. Is this a related-party transaction: Yes 14. Source of Funds: - Own funds.