Technologies CEO Issues Letter to Shareholders on Strategic Direction and Value Creation Plan

Technologies CEO Issues Letter to Shareholders on Strategic Direction and Value Creation Plan

Israel, May 11, 2026 -- Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN, IINNW) ("Inspira," "Inspira Technologies,"

or the "Company"), today issued a letter to its shareholders from its Chief Executive Officer, Dagi Ben-Noon.

Valued Shareholders,

past several months have marked a defining period in our Company's evolution. We have taken decisive steps to reshape Inspira around

a sharper strategic focus, a stronger asset base, and multiple near-term and long-term pathways to shareholder value creation. This letter

is intended to clearly outline where we are heading, why we believe this moment is important, and how our Additively Manufactured Electronics

("AME") platform, quantum connectivity strategy, and medical business each contribute to a broader plan to convert our assets

into measurable value.

strategy is built around three distinct value tracks: a commercially active AME platform, a focused quantum connectivity program targeting

one of the industry's most important scaling bottlenecks, and a medical business being positioned as a wholly owned subsidiary

with meaningful near-term strategic potential. Each track has its own timeline, execution path, and value driver. Together, they form

a coordinated framework designed to convert the Company's assets into measurable business outcomes and long-term shareholder returns.

Importantly, our recent commercial activity should not be viewed as

an isolated event, but as clear evidence of a broader revenue ramp now developing across the Company. This ramp up is expected to be supported

by AME system sales, recurring consumables and service revenues, and continued monetization of our medical technologies. Our objective

is to convert this commercial activity into a scalable revenue base that grows consistently quarter over quarter. This revenue ramp will

be reflected in the Company's upcoming financial reports.

At the same time, the Company's management has actively reduced

the burn rate of the legacy medical business while reallocating capital toward the AME platform and quantum connectivity program. This

is not a passive increase in expenses; it is a deliberate shift in the Company's cost structure from legacy medical operating expenses

toward commercial AME execution, quantum development, customer deployments, and revenue-generating activity. Our execution priorities

are clear: accelerate cash collection, expand recurring revenue, improve gross margins, increase capital efficiency, and convert commercial

activity into scalable revenue growth.

Quantum Computing Connectivity

are positioning Inspira to become a foundational connectivity layer for the quantum computing industry, one of the most strategically

important and fastest-growing sectors in advanced technology. Our recent acquisition of the AME platform from Nano Dimension Ltd. ("Nano"),

backed by more than $200 million of prior research and development investment, gives us a mature, IP-protected, production-ready technology

stack to address what we believe is quantum computing's defining hardware bottleneck. This AME technology is deeply connected to our

team's history. I was one of the original inventors of Nano's AME technology, and several members of Inspira's management

and development teams have spent significant parts of their careers building, advancing, and commercializing this platform. For us, AME

is not a newly discovered opportunity; it is a technology we know intimately, understand deeply, and believe is now ready to be directed

toward one of the most important infrastructure challenges in quantum computing.

believe the highest-value application of the AME platform lies in addressing one of quantum computing's defining hardware bottlenecks:

connectivity inside dilution cryostats. Quantum computers are not limited by qubits alone; they are increasingly limited by the wiring

required to control and read them. Today, those lines are typically assembled from separate cables, connectors, shields, thermal anchors,

and mechanical components, an approach that can support small systems, but does not scale as qubit counts increase. More qubits require

more wires, and more wires introduce more heat, noise, space constraints, RF loss, and mechanical complexity into the cryogenic system.

This is the connectivity wall.

approach is not to improve a single cable or connector, but to build a complete monolithic interconnect architecture. This architecture

is built as a single engineered structure from the outset, combining the conductor, RF dielectric, shielding, thermal management, and

mechanical routing rather than assembling them as separate components. As a result, it removes unnecessary connectors and RF discontinuities,

embeds shielding to suppress crosstalk, incorporates thermal traps and anchoring to intercept heat before it reaches the coldest stage,

and enables approximately 20 fully shielded conductors per square centimeter. Just as important, it preserves the material purity, continuity,

and clean interfaces required for quantum environments. In simple terms, traditional quantum wiring is assembled; our solution is engineered

as one monolithic system.

week we signed a joint development agreement with Qarakal Quantum Ltd., a leading quantum hardware initiative connected to Israel Aerospace

Industries and the Hebrew University of Jerusalem, to jointly advance and validate our quantum connectivity architecture for cryogenic

quantum systems. This collaboration moves our solution from internal development toward system-level validation in a working quantum

environment, and we expect to announce additional collaborations with leading quantum ecosystem participants in the coming weeks.

market opportunity is significant. McKinsey projects the quantum computing market could reach up to $72 billion by 2035, according to

McKinsey's 2025 Quantum Technology Monitor1, while the Boston Consulting Group estimates the broader quantum ecosystem

could approach $170 billion by 20402. We are positioning the Company to participate in this market through a focused connectivity

strategy aimed at one of the sector's most critical scaling constraints. To align our corporate identity with this strategic direction,

shareholders have approved changing the Company's name to QTREX Quantum Ltd., subject to Israeli regulatory approval.

AME platform is generating commercial traction at a significant pace. Within weeks of closing the acquisition,

we have deployed a commercial AME system at a Tier-1 U.S. defense customer, commenced an implementation process with one of the "Magnificent

Seven" U.S. technology companies, and generated more than $1 million from recent transactions- the majority of which has already

been received in cash by the Company. This level of commercial activity, achieved in such a compressed timeframe, demonstrates not only

the strength of the underlying platform but also the depth of demand from leading organizations operating in the most demanding hardware

environments in the world. We currently see a robust pipeline of additional engagements developing, including organizations operating

at the intersection of advanced computing and quantum infrastructure, and we expect commercial momentum to continue building over the

coming quarters. A significant portion of the AME platform's customer base is concentrated in the aerospace, missile, and defense

sectors, and we are experiencing growing interest from additional leading organizations across these markets. This interest is driven

by AME's ability to deliver capabilities that conventional electronics manufacturing does not offer. By combining advanced conductive

materials, specialized RF dielectrics, complex 3D geometries, and high-density electronic structures in a single manufacturing platform,

AME creates a powerful technology stack for mission-critical environments. This combination of unique materials and integrated manufacturing

capabilities makes AME especially suited for customers that require compact, rugged, high-performance electronic systems where size,

weight, signal integrity, and reliability are critical.

the immediate commercial opportunity, AME also gives us strategic access to organizations that are active in quantum and next-generation

computing. Several current and new AME customers, maintain relevant programs in quantum computing or related advanced computing infrastructure.

We are working to expand these commercial relationships into additional units and programs within the same organizations, creating a

potential bridge between AME's current traction and our broader quantum connectivity strategy.

We are repositioning our existing medical business to sharpen operational

focus and unlock strategic value. We are actively working to sell certain parts of our medical business and are engaged in discussions

with several parties regarding potential transactions. Management's objective is to transform at least one of these discussions

into a formal term sheet or definitive strategic framework by the end of the third quarter of 2026, with certain discussions already advanced

enough to potentially mature sooner. Such a transaction could materially strengthen the Company's balance sheet and provide significant

non-dilutive capital. At the same time, we have actively reduced the medical business burn rate to preserve capital and align the cost

structure with our strategic monetization process.

monetization effort is supported by several advanced medical assets with regulatory, clinical, and commercial validation. The INSPIRA

ART100 is FDA-cleared for cardiopulmonary bypass procedures in the U.S. and is in active clinical use at leading U.S. institutions, including

top academic medical centers. To date, the ART100 has been used clinically in more than 40 patients and continues to be used actively

and routinely. In addition, the HYLA platform has recently been validated in a next-generation standalone configuration with high

parameter accuracy, targeting the broader heart-lung surgery market. We are preparing to submit the HYLA platform for FDA clearance in

Beyond the Company's current clinical and regulatory milestones,

the broader critical care environment continues to demonstrate the strategic relevance of advanced oxygenation technologies. Severe infectious

disease events, including recent Andes virus, associated hantavirus infections and Hantavirus Pulmonary Syndrome ("HPS") cases

monitored by global health authorities, continue to underscore the importance of ICU readiness, advanced blood oxygenation, and extracorporeal

support infrastructure. The Centers for Disease Control and Prevention clinical guidance from May 2026 notes that early ECMO initiation

in deteriorating HPS patients has been associated with approximately 80% survival. Inspira's FDA cleared ART100 platform remains

a meaningful medical asset within the Company's broader portfolio. In this context, the Company has notified relevant U.S. public

health authorities of its manufacturing readiness for broader critical care preparedness planning.

Across all three tracks, disciplined capital allocation remains our

operating principle. The termination of our ATM and SEPA facilities in March 2026 reflects our commitment to a cleaner capital structure

and a more deliberate financing strategy. With a revenue ramp up now developing, the medical monetization process underway, and burn reduction

already implemented, our priority is to preserve capital, extend runway, and convert strategic progress into measurable financial results.

ahead, we believe Inspira is at an inflection point. The convergence of an actively scaling AME commercial platform, a quantum connectivity

strategy targeting one of the largest emerging hardware markets in technology, and a medical monetization process designed to deliver

non-dilutive capital, creates what we believe is a unique combination of near-term commercial visibility and long-term strategic upside.