Nortech Positioned to Serve Global Markets Amid Tariff Challenges

Nortech Systems (“Nortech” or the “Company”), a global leader in digital connectivity solutions and data management engineering, is strategically positioned to serve customers in Europe and the Asia Pacific region while effectively mitigating the impact of global tariffs and trade challenges.

“The imposition of tariffs has significantly impacted contract manufacturers, including Nortech. However, Nortech's global manufacturing strategy has allowed the Company to navigate these challenges effectively,” said Jay D. Miller, President and CEO of Nortech. “We are able to minimize the impact of global tariffs and continue to provide exceptional service to our customers worldwide. Our commitment to innovation and adaptability ensures that we remain a trusted partner in the industries we serve.”

While tariffs continue to fluctuate, it is important to note that much of Nortech’s production work in China is built in-country, for-country, employing a near-shoring approach to better serve customers in the global market with reduced shipping costs and time.

By maximizing the Company’s global manufacturing capacity, Nortech is able to serve customers in Asia-Pacific, Europe, and Mexico while navigating complex trade environments and delivering stable, high-quality solutions across these key regions.

Nortech Suzhou is NMPA-certified to produce medical devices in China. We serve medical device customers and industrial customers with wire and cable interconnect solutions, plus full device assembly from our Suzhou facility.

About Nortech Systems Incorporated

Nortech Systems is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech primarily serves the medical imaging, medical device, aerospace & defense, and industrial markets. Its design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. Its manufacturing and supply chain capabilities are vertically integrated around wire, cable, and interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has six manufacturing locations and design centers across the U.S., Latin America, and Asia. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. Nortech's website is www.nortechsys.com.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 including without limitation statements regarding future financial results, gaining approval of customers relating to moving production from one facility to another Company-owned facility, strengthening of customer relationships, achieving long-term strategic goals, effects of restructuring and consolidating manufacturing facilities, sustained long-term health and growth, ability to scale our business, reducing cost structure and optimism about customer pipeline. While this release is based on management's best judgment and current expectations, actual results may differ materially from those expressed or implied and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: (1) commodity cost increases coupled with challenges in raising prices and/or customer pressure to reduce prices; (2) supply chain disruptions leading to shortages of critical components; (3) volatility in market conditions which may affect demand for the Company's products; (4) increased competition and/or reduced demand; (5) changes in the reliability and efficiency of operating facilities or those of third parties; (6) risks related to the availability of labor; (7) the unanticipated loss of any key member of senior management; (8) geopolitical, economic, financial and business conditions; (9) the Company's ability to steadily improve manufacturing output and product quality; (10) the impact of global health epidemics on our customers, employees, manufacturing facilities, suppliers, the capital markets and our financial condition; or (11) challenges with customers with respect to moving production from one facility to another Company-owned facility. Some of the above-mentioned factors are described in further detail in the section entitled "Risk Factors" in our annual and quarterly reports, as applicable. You should assume the information appearing in this document is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since such date. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the United States Securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

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While tariffs continue to fluctuate, much of Nortech’s production work in China is built in-country, for-country, employing a near-shoring approach to better serve customers in the global market with reduced shipping costs and time.