ELSIGHT LIMITED — Capital/Financing Update 2019

Dec 18, 2019

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ASX Announcement

December 19, 2019

Elsight Receives Purchase Order for Halo v1.1 Software Platform; Halo’s Integration with Airobotics’ Drone Platform Progressing Positively

Highlights

• Elsight has received an initial A$91,000 purchase order for Halo firmware equipped Multichannel units from the official National Fire and Rescue Authority .

• This Multichannel order includes the first order for the company’s newly released Halo firmware (software) to be used by its multichannel platform.

• The purchase order comes after a year of field trials conducted to demonstrate the capabilities of Elsight’s technology, and the identification of a wide array of applications for Elsight’s technology within The National Fire and Rescue Authority’s platforms.

• Halo’s Integration with Airobotics’ Drone Platform Progressing Positively – Airobotics has successfully conducted a wide range of tests during numerous flights with airborne platforms fully integrated with Halo onboard as the communications solution.

• The next step in the integration process with Airobotics is the carrying out of additional test flights in different field flight test areas and terrains across the country. Upon their success, additional field flight tests will be carried out in the U.S. designed to prepare Airobotics’ Halo-integrated airborne platform to become the world’s first, manually driven and autonomous drone based airborne platform and communication system certified by the Federal Aviation Authority (FAA) to fly over urban and populated areas.

December 19, 2019 — Elsight (ASX: “ELS”) an ASX-listed company that develops advanced communication technologies for real-time data, video, and audio transmission over cellular networks in mission-critical environments, has received an initial A$91,000 purchase order for Halo firmware equipped Multichannel units from The National Fire and Rescue Authority, the official fire and rescue authority of the State of Israel. The National Fire and Rescue Authority will use these units to provide always-on communication between their national headquarters and their command and control centres spread across the country.

This is the first purchase order for Elsight technology solutions including the newly released Halo software platform, with a cloud based, recurring revenue model, in this case supplied as firmware with Multichannel units.

Beyond the actual modernisation and upgrade of the Multichannel platform, this Multichannel equipped with our advanced Halo’s firmware provides us with a new capability to sell new cloud-based services under a monthly recurring revenue model to existing and new customers alike.

The order from The National Fire and Rescue Authority comes after a year of numerous field trials that were conducted in order to demonstrate and validate the capabilities and advantages of Elsight’s technology. Over the course of the past year, the relationship between the two organisations has strengthened significantly, and a wide array of applications for Elsight’s technology within the Authority’s platforms has been identified. In advance of the launch of Halo v1.1 last month renewed field trials were initiated, and the Authority was highly satisfied with the performance levels of Elsight’s systems, resulting in this initial purchase order.

Halo’s Integration with Airobotics’ Drone Platform Progressing Positively

Further to our ASX announcement on 30 October 2019, the pilot trial commenced on schedule last month. Airobotics has successfully conducted a wide range of tests during numerous flights with airborne platforms fully integrated with Halo v1.1 onboard as the communications solution. The success of these flight tests follows system adaptations undertaken by both Elsight and Airobotics to advance the integration process. The next step in the integration process is the carrying out of additional test flights in different field flight test areas and terrains across the country, and upon their success, additional field flight tests will be carried out in the U.S. designed to prepare Airobotics’ Halo-integrated platform to become the world’s first, manually driven and autonomous drone based airborne platform and communication system certified by the Federal Aviation Authority (FAA) to fly over urban and populated areas.

Nir Gabay, Elsight’s CEO: “The purchase order received from The National Fire and Rescue Authority and the recent positive developments with respect to the integration of Halo inside Airobotics’ drone platform represent two additional milestones as we continue to demonstrate Halo’s industry-leading capabilities to the market. The positive progress as regards Halo’s integration with Airobotics’ drone platform as they prepare to receive full FAA authorisation shows the strategic value of Elsight’s world-class technology in solving issues such as those presented by beyond the visual line of sight drone operations, and field trial success of the Halo firmware equipped units with The National Fire and Rescue Authority shows the applicability of our technology in the field of emergency response.”

Authorised for release by the board of directors of Elsight Limited

- ENDS -

For more information, please contact:

Corporate Enquiries

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

Australian Business Enquiries

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

Media Inquiries

Daniel Paperny Media & Capital Partners T: +61 (0) 433 339 454 E: daniel.paperny@mcpartners.com.au

E: howarddigby@gmail.com

About Elsight

Elsight (www.elsight.com), is a solution provider of ground-breaking hybrid video and data transport services (onthe-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.

About Airobotics

Airobotics (https://www.airoboticsdrones.com/), headquartered in Scottsdale, Arizona, USA, has developed a pilotless drone solution, the first of its kind in the global market. Airobotics provides an end-to-end, fully automatic solution for collecting aerial data and gaining invaluable insights. The industrial grade platform is available on-site and on-demand, enabling industrial facilities to access premium aerial data in a faster, safer, more efficient way.

The team at Airobotics fuses expertise in aerospace hardware design, robust electronic systems, leading software engineering, and years of experience in commercial drone operations. This varied experience has allowed them to design a solution suited to address the needs of the world’s most complex industrial environments.

About The National Fire and Rescue Authority

The National Fire & Rescue Authority (https://www.gov.il/en/Departments/firefighting_and_rescue_israel) is operating by force of the "2012 National Fire Authority" law, that was passed as part of a major reform in the Israeli Fire and Rescue Services. One of the main changes the law called for is the transition from the municipal services model to a national organization, under the supervision of the Ministry of Public Security. The law also outlined additional steps to improve the Firefighting capabilities, in terms of firefighters’ responsibilities and Jurisdictions as well as additional manpower, equipment and fire trucks.

The Authority is divided into 7 Regions across Israel, all working under the leadership and guidance of The Fire and Rescue Commission, headed by the Fire and Rescue Commissioner. The authority employs around 2,000 firefighters manning 120 fire stations across the land. Together with volunteers (youth & adults), which are numbered at around 3,000, they respond to an average of 90,000 events each year.