ELSIGHT LIMITED — Capital/Financing Update 2018

Jul 12, 2018

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ASX Announcement

Company Update

• Unaudited revenue for Q2 2018 was USD $374K, a 51% increase from Q2 2017 with significantly improved cash collection.

• Overall revenues are on track to exceed USD $3m for the year-ended 31 December 2018.

• Elsight’s largest order of the quarter came from Maxtech Networks to add secure video transmission capability to one of its solutions for a large government customer in the Asia Pacific Region.

• Alrena commences purchasing equipment for pilot projects

July 11, 2018

Elsight Limited (ASX: ELS), announced today that the company continues to achieve meaningful growth in 2018, as evidenced by the following Q2 data pertaining to a wide variety of company activities.

While the detailed quarterly report (Appendix 4C) will only be released towards the end of this month, we are pleased to announce at this time that the unaudited revenue for Q2 2018 is USD $374K, which is a 33% increase on Q1 2018 and a 51% increase on Q2 2017. In addition, as a result of increased focus on financial management, the cash receipts for Q2 2018 were strong and will be reported in the Appendix 4C for Q2.

As such, we remain confident that the overall revenue for 2018 will be significantly higher than it was in 2017. Based on our current growth rate, revenues should exceed USD $3m by the year-ended 31 December 2018. Management expects the growth rate, already on the rise in the first half of 2018, to continue to increase throughout the next two quarters. The company is already well positioned to deliver on its internal Q3 targets with a number of orders and “hard” customer commitments already received.

While Q2 revenue was made up of orders from numerous customers, the largest order commissioned during this quarter was by Maxtech Networks, the wireless communication company called in to assist in the recent successful Thai cave rescue mission. Maxtech turned to Elsight to acquire a clear, reliable and secure video transmission solution for integrating with its Snipertech technology – used by sniper teams and commanders. Elsight's integration with Maxtech provides wide bandwidth video and data transfer over multiple IP links from the field to commanders for immediate decision making. We anticipate future collaborations between our companies.

"The partnership with Elsight brings a huge value to our offering in HLS and Emergency response segments. The wide bandwidth, secured connectivity that Elsight provides connects our technology with the decision makers allowing them the ability to extend their visual reach to the field. Such value is paramount in tactical applications" stated Uzi Hanuni, CEO of Maxtech Networks.

We are pleased to advise that Alrena, a developer of smart emergency solutions and a strategic partner of Elsight in France and French speaking countries, has started purchasing equipment to be used in pilot projects. Although it has taken Alrena 6 months longer than expected to finalize the remaining components of the medicase, we are confident of significant progress in coming months. The agreement with Alrena was put in place at the end of 2017 for a three-year partnership with a monetary commitment of €6m from Alrena.

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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

For more information, please contact:

Corporate Enquiries

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

Justin Rosenberg Gleneagle Securities T: +61 2 8277 6683 E: justin.rosenberg@gleneagle.com.au

Australian Media and Business Enquiries

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

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 defence and homeland security, industrial security, broadcasting, first responders and healthcare.

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