QualiSense signs five-year deal with global manufacturing leader, Johnson Electric

Deploying Augmented AI technology for quality assurance

HONG KONG SAR - Media OutReach - 4 September 2023 - QualiSense has entered into a five-year agreement with Johnson Electric to become the preferred software vendor for inspection and quality control (QC) using Augmented AI technology. Johnson Electric manufactures over 3 million micro-motors and motion-related components each day on 1,500 production lines in 17 countries spanning four continents. The AI technology will help reduce the cost of quality, as well as help improve manufacturing processes. There are also plans to integrate the insights into the design process to improve the manufacturability of new products.

The five-year deal was formalised following the successful installation and piloting of QualiSense's technology on a number of Johnson Electric production lines in Canada and China. Johnson Electric Group and Cortica Group founded Lean AI as a start-up joint venture in 2021 and, as the AI technology and its functionality has matured, the Lean AI business has been rebranded as QualiSense.

Johnson Electric and QualiSense have commenced the agreement by targeting 100 inspection points. These projects cover a variety of complex metal surface inspections. Over the next five years, the project will expand into different use cases, production processes and sensors, covering Johnson Electric's manufacturing needs globally.

"Our proven solution for quality assurance has already been successfully deployed on the production floor and this agreement gives us the opportunity to roll it out on an even larger scale," explained Erez Tsur, CEO and co-founder of QualiSense. "With the complexity and capability of AI changing so rapidly, entering a five-year deal with one of the world's largest micro-motor manufacturers highlights the growing confidence in QualiSense's Augmented AI disruptive technology."

Austin Wang, senior vice president at Johnson Electric added, "QualiSense AI is crucial for maintaining and strengthening Johnson Electric's leading position in the Industry 5.0 era, bringing state-of-the-art inspection capabilities to ensure that our products are consistently of the highest quality. This will deepen our software and AI capabilities within our business – as well as strengthen the foundations for a unique and exciting software product for the worldwide quality inspection market."

Qualisense's mission is to deliver a fast and scalable, universally accessible, augmented AI platform for quality assurance on the production line. Its technology is already enabling manufacturers to deploy their AI training model in days, compared to weeks and months with a traditional AI approach. In addition, it can be deployed on multiple cameras thanks to the technology's knowledge-transfer capabilities, with no expert in AI or machine vision required.

The Johnson Electric Group is a global leader in the manufacture of electric motors, actuators, motion subsystems and related electro-mechanical components. The group is headquartered in Hong Kong and employs over 35,000 individuals across 22 countries worldwide. Johnson Electric Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (Stock Code: 179).

For more information on QualiSense's solutions for quality assurance, visit www.qualisense.ai.

Hashtag: #JohnsonElectric #QualiSense

The issuer is solely responsible for the content of this announcement.

About Johnson Electric Group

The Johnson Electric Group is a global leader in electric motors, actuators, motion subsystems and related electro-mechanical components. It serves a broad range of industries including Automotive, Smart Metering, Medical Devices, Business Equipment, Home Automation, Ventilation, White Goods, Power Tools, and Lawn & Garden Equipment. The Group is headquartered in Hong Kong and employs over 35,000 individuals in 22 countries worldwide. Johnson Electric Holdings Limited is listed on The Stock Exchange of Hong Kong Limited (Stock Code: 179). For further information, please visit: www.johnsonelectric.com.

About QualiSense

QualiSense was founded in 2021 in partnership by Johnson Electric and Cortica to develop a groundbreaking augmented AI platform that processes non-labelled production data to train itself to detect defective parts with minimal user guidance. QualiSense mission is to deliver a fast and scalable universally accessible augmented AI platform for production quality assurance. The platform significantly reduces the cost and time required to deploy automated inspection systems and autonomously adapts to production and environmental changes with minimal human intervention. QualiSense is a software-only solution designed from the ground up for the production floor, offering high throughput and easily integrates with any camera system for retrofitting to existing or new production lines. QualiSense has several production systems serving top automotive OEMs,18 patents pending and 14 in the pipeline.