INVESTOR RELATIONS CONTACT: Sofía Ortega Santos | inversor@facephi.com | sortega@facephi.com | +34 662 089 245 1/2

Alicante, 19th July, 2021

COMMUNICATION - MARKET NOTICE – FACEPHI BIOMETRIA, S.A.

Dear Sirs,

On the 25th of January 2021, the Company published a corporate action notice adopted by the Extraordinary General Meeting of Shareholders held on that date, including, as a first point, the delegation to the Board of Directors of the power to issue warrants convertible into shares of the Company in favor of Nice & Green, S.A., (“Nice & Green”) excluding pre-emptive subscription rights, for a maximum conversion amount of €20,000,000, as well as to increase share capital by the amount necessary to allow the conversion of said warrants.

On 15 February 2021, the Board of Directors adopted a resolution, under the delegation of the Company´s Extraordinary General Shareholders’ Meeting of January 25th, 2021, to carry out the first issue of 48,076,923 warrants convertible into shares of the Company for a maximum conversion amount of €2,500,000 (the “Equity Warrants (FEBRUARY 2021)”), with Nice & Green being the sole subscriber of the issue of the Equity Warrants (FEBRUARY 2021). On 6 and 21 April 2021, Nice & Green, under the terms of the investment agreement, informed the Company and exercised its right to convert 281,001 Equity Warrants (FEBRUARY 2021) for a total conversion amount of €1,000,000. In addition to this, on 19 May 2021, they informed the Company its right to convert 187,346 Equity Warrants (FEBRUARY 2021) for a total conversion amount of €650,000. As a result of the above, FacePhi has granted a deed of capital increase in order to cover the conversion of the Equity Warrants issued. The new shares of the Company have been issued in execution of the conversion of the 187,346 Equity Warrants (FEBRUARY 2021) and have been issued at €3.4695 per share (€0.04 nominal value plus €3.4295 issue premium). Consequently, the Company´s share capital will be increased by a nominal amount of €7,493.84 (187,346 * €0.04). After the aforementioned capital increase, Article 5 of the Company's Articles of Association has been worded as follows: "The share capital is set at the sum of SIX HUNDRED FIVE THOUSAND THREE HUNDRED SEVENTY-TWO EUROS AND EIGHTY-EIGHT CENTS (€605,372.88), which is fully subscribed and paid up, divided into FIFTEEN MILLION ONE HUNDRED THIRTY-FOUR THOUSAND THREE HUNDRED TWENTY-TWO shares (15,134,322), represented by book entries, of FOUR CENTS OF EURO (0.04 euros) per share, of the same class, equal, accumulative and indivisible".

INVESTOR RELATIONS CONTACT: Sofía Ortega Santos | inversor@facephi.com | sortega@facephi.com | +34 662 089 245 2/2

The legal regime applicable to the Company's shares is the one provided for in Spanish law and, specifically, in the provisions included in the Corporations Act and in Royal Legislative Decree 4/2015 of 23rd October, approving the revised text of the Securities Market Act, as well as in the respective applicable implementing regulations.The newly issued shares are denominated in euros and will be represented by book entries and will be registered in the corresponding accounting records held by Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A.U., (Iberclear), with registered office in Madrid, Plaza Lealtad nº 1 and its authorized participating entities. All the shares, including those issued at the time of the capital increase, are ordinary shares and confer the same political and economic rights as the currently outstanding shares. We remain at your disposal for any clarification you might deem necessary. Sincerely, Salvador Martí Varó Chairman of the Board of Directors .