ELSIGHT LIMITED — Capital/Financing Update 2017

Oct 3, 2017

ASX Announcement

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4 October 2017

Elsight and Alrena contract for emergency telemedicine joint solution comes into full force

Highlights

• Agreement commits to an increased minimum of € 6m sales revenue for Elsight

• “Elsight inside” Alrena’s Smart Medicase, is designed to remove a number of key technological limitations that currently hold back the explosive growth of Telemedicine (estimated to reach US$66.6 billion by 2021).

• Alrena Smart Medicase is a remote, fully-featured first-aid medical suitcase that connects ER doctors to multi-casualty events (accidents, terror attacks, natural disasters), as well as to paramedics and nurses in rural areas using cutting edge wireless data & video streaming technologies.

Paris, France — October 3[rd] , 2017 — El Sight Ltd. (ASX: “ELS”) , and Alrena Technologies, have finalised a contract for a strategic partnership introducing the joint production and distribution of a revolutionary solution for emergency medicine, Smart Medicase . Further to the announcement of 2 August 2017, the contract comes into full force today, allowing both companies to go to market with this unique solution. The agreement includes a contracted minimum purchase amount of €6,000,000 over three years.

The Smart Medicase is jointly developed to address an acute and growing challenge: the global shortage of medical doctors. This solution enables paramedics, nurses and police officers in remote places to help people with injuries (victims of terrorist attacks/natural disasters and car accidents) and illnesses in emergency situations, while being remotely supervised by the best medical doctors in major hospitals in real time.

The combined adverse impact of a rapidly aging population, and the deteriorating Medical Doctors/Population ratio, is driving health organisations to increase their adoption of Telemedicine. The efficiency of medical doctors and specialists is increased as telemedicine empowers and enables supervised nurses and paramedics to take over certain functionalities of a doctor. It should be noted that the shortage of doctors is no longer limited only to rural areas but also to larger cities.

Whilst approximately 15% of the U.S. population lives in rural areas, only 10% of the nation’s physicians practice in rural areas. In rural America, shortages of specialists are particularly acute; with an estimated 40 specialists for every 10,000 Americans living in rural areas, as compared to 134 per every 10,000 urban residents. This situation is played out around the world and is significantly worse in many countries.

According to “First Stop Health Telemedicine News ” an estimated 65 million Americans now live in “a primary care desert,” where the total number of Primary Care Practitioners (PCP) can only meet 50% or less of the population’s needs. By 2025, the Association of American Medical Colleges projects U.S. shortages of PCP’s will increase significantly.

Elsight Limited ACN 616 435 753 T: +61 8 6189 1155 | A: C/- Platinum Corporate Secretariat, Level 2, 46-50 Kings Park Road, West Perth WA 6005

In this joint agreement, Alrena commits to purchase El Sight units specially adapted for use in the Smart Medicase with a target quantity of no less than €6,000,000 over a period of three years. Elsight and Alrena will cooperate in the development, distribution, support and servicing of the Smart Medicase in some initial strategic geographical territories, such as France, Belgium, Switzerland, Côte d'Ivoire (Ivory Coast) and Algeria.

According to a 2017 market research report, 'Telemedicine Market – Global Trends, Analysis and Forecasts to 2022', published by Mordor Intelligence LLP, the Global Telemedicine market was estimated to be worth around US$23.2 billion and is expected to reach US$66.6 billion by the year 2021, growing at a CAGR of 18.8% during the forecast period (2017-2021).

Currently, this fast-growing Telemedicine market is restrained by a number of technological limitations. By tackling, head-on, these key missing capabilities, the Smart Medicase has the potential of dramatically expanding existing market segment size and also “creating” brand new ones.

The key areas of improvement are:

• Mobility . Health & Emergency Medicine on the Move

• Medical Hub . Transmission of medical devices data, video and voice

• Conferencing . Replacing today’s point-to-point limited communication

• Redundancy . Always-on regardless of weak coverage by one of the cellular providers

• Emergency Waste . During long winters, in hard to reach remote villages in the high mountains of France, Alrena has found that approximately 60% of the emergency helicopter evacuations of patients complaining of heart attacks have proven to be false symptoms upon arrival at the hospital and could have been prevented with the Smart Medicase at a huge financial saving.

Being aware of the sensitive nature of a patient's medical records confidentially, and in light of the fact that cyber-attacks on medical records cost twice as much as other financial cyber-attacks - Elsight ensures the data communication to be of the highest military grade protection against hackers’ interception.

“We are very excited about this partnership. Both parties worked very hard towards bringing this opportunity together and I believe we have an offering that will truly save lives. This is very rewarding" said Nir Gabay, El Sight's CEO. "We believe that hospitals, rural medical clinics, private nursing services, prisons, police cars, ambulances, military units, local municipalities, remote farms or mines – should be and will be equipped with this Smart Medicase as their next generation first-aid toolkit”.

The positive impact of the Smart Medicase can be best seen in major terror attacks or massive road accidents, where first responders are dispatched to the scene. Paramedics arrive and start attending to the injured and provide emergency treatment procedures. The most critical cases may need an immediate doctor’s opinion to conduct the needed procedure, to save their life or minimise their injuries or potential damage - even before they reach the hospital. Before the Smart Medicase , a paramedic would have tried to call the doctor at the hospital to get advice as to whether to conduct a procedure before sending the patient in an ambulance. In this situation, the doctor is totally “blind”, lacking critical information (with no sharp video of the injury and no vital signs from digital stethoscope and other medical devices on sight) and is being asked if the patient should be sent to the hospital… where he may arrive deceased.

In contrast, with the Smart Medicase on site, the communication with the doctor in an emergency room is established automatically. This enables the doctor to simultaneously receive vital signs via the medical equipment in the Smart Medicase . He views the injury and the patient over a high-quality HD camera and can make educated medical decisions in real time. Now, for the first time, he can decide if and what procedures to conduct on the ground, advise the paramedic and prepare the ER for the arrival of the critically wounded without further waste of vital time.

17.10.04.Alrena Agreement Comes into Force^J Increases in Contract Value of 3

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Richard Kletzkine, president of Alrena Technologies said “We are in the business of saving lives. We enable emergency personnel to provide first aid to the elderly, sick and injured, as they are being supported remotely by medical doctors. Our Smart Medicase is equipped with Elsight ’s super high bandwidth and fully secured communication device that enables the user to communicate and transmit medical data from anywhere to any hospital of choice. We believe that our Smart Medicase is going to make a huge difference in many countries around the globe with this new, ground breaking technology. 2018 is going to be a great year for us.”

- ENDS -

For more information, please contact:

Corporate Enquiries

Nathan Barbarich RM Corporate Finance T: +61 8 6380 9200 E: nbarbarich@rmcf.com.au

Media and Business Enquiries

Howard Digby Elsight Limited T: +61 434 987 750 E: howarddigby@gmail.com

About Alrena

Alrena Technologies (www.alrena.net, www.alrena.com) is a Paris based innovator developing a platform for emergency medicine to remote locations. Beyond these developments, the company constantly works towards the integration of new medical devices to assure constant enrichment of its content and capabilities. They offer the medical community and the emergency forces a strong team of engineers and R&D

About Elsight

Elsight (www.el-sight.com) is a solution provider of ground-breaking hybrid video and data transport services (on-the-move or fixed) for large Safe-City projects, sensitive facilities management, and surveillance and protective activities. The platform supports video capturing, recording, and highly secured transmission against video interception and hacking. Elsight ’s platform was designed to address the most demanding requirements of Special Forces across enemy lines and sophisticated intelligence organizations. These systems underwent the most rigorous testing in combat situations as well as extensive testing by the most demanding laboratories. As a result, they present an unmatched level of reliability, lowest latency, and highest adaptive bandwidth over cellular networks that enables HD and 4K tv transmission quality, with “never-fail” redundancy and much more. For the first time they offer strict military requirements for civil usage. Elsight ’s customers range from defense and homeland security, industrial security, broadcasting, first responders and healthcare.

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