ELSIGHT LIMITED — Capital/Financing Update 2019

Oct 29, 2019

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ASX Announcement

30 October 2019

Elsight Receives First Purchase Order for Halo Units from Industry-Leading Automated Drone Solution Provider, Airobotics

Highlights

• Elsight has received its first purchase order for ten (10) Halo units from Airobotics , a tier one US-based provider of automated, industrial drone and aerial data platforms, for a pilot trial .

• Halo is Elsight’s brand new, flagship communication platform , integrating Elsight’s high bandwidth, totally secure, data and video transmission technology in a product with a miniaturised form factor and weight, while offering exceptionally low battery consumption and heat index.

• Airobotics’ pilotless drone solution is the world’s first and only regulatory compliant commercial UAV solution that can be operated remotely. Airobotics’ end-to-end automated drone platform is purpose-built to simplify drone operations.

• A key aim of the pilot trial is to enhance Airobotics’ platform by equipping it with Halo, allowing for longerrange drone flights, and ultimately assisting in achieving milestones for “beyond the visual line of sight” (BVLOS) drone operations.

• Following the pilot trial, Elsight’s Halo communication platform will be fully integrated into Airobotics’ range of solutions, becoming Airobotics’ standard communications system to power aerial-data collection in Smart Cities.

• Trial scheduled to commence in November 2019.

October 30, 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 its first purchase order for ten (10) Halo units from tier one US industrial drone solution provider, Airobotics. With these units, Elsight will commence a pilot trial of its brand new Halo communications platform with Airobotics.

Halo is Elsight’s brand new, flagship communication platform. It integrates Elsight’s high bandwidth, totally secure, data and video transmission technology in a product with a miniaturised form factor and weight, all while offering exceptionally low battery consumption and heat index, and with improved performance and features.

This Halo pilot trial is of great strategic importance to Elsight and Airobotics, as it has the potential to validate a key differentiator of Halo for the entire drone industry, and in particular for drone operations “beyond the visual line of sight” (BVLOS), which will be the case for drone deliveries. BVLOS refers to when a drone is being operated beyond the visual line of sight of the operator, is one of the most talked about concepts in the industry today, and is regarded by many as the tipping point that can make long-range drone deliveries and remote drone inspections commercially viable. Currently, the issues of security, low battery consumption and weight, as well as always-on availability and low latency, are major issues for the drone industry. These are the core issues that Halo has been designed to address, and they are issues that need to be solved in order to turn BVLOS drone operations into a commercial reality.

Elsight Limited ACN 616 435 753 T: +61 3 8689 9997 | A: C/- Mertons, Level 7, 330 Collins Street, Melbourne VIC 3000

Airobotics has developed a fully-automated data-driven drone solution that is certified to fly without human operators. 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, and more efficient way. It has logged over 50,000 automated drone flights to date. Airobotics operates in industries such as oil & gas, seaports and other large industrial facilities, with applications including inspection, surveying, mapping, security, and emergency response.

Airobotics is the first company in the world to have been granted authorisation to fly fully automated drones without a pilot, as licenced by the Civil Aviation Authority of Israel (CAAI) (read more: https://www.airoboticsdrones.com/press-releases/airobotics-granted-worlds-first-approval-fly-fully-automatedcommercial-drones-without-pilot/). Airobotics has also obtained the most advanced level of certification for the operation of commercial drones, and is currently certified by the Federal Aviation Administration (FAA) (USA), the Civil Aviation Safety Authority (CASA) (Australia), as well as the Civil Aviation Authority of Israel (CAAI).

This POC will incorporate the 10 purchased Halo units into Airobotics’ new drone model, with the primary aim of the integration of Halo being to put Airobotics’ platform in a position to obtain full Federal Aviation Administration (FAA) approval for longer-range drone flights.

"We are thrilled to be moving our partnership with Airobotics forward with this first Halo purchase order. We are excited about the opportunity to demonstrate Halo ’s unique, industry-leading capabilities with respect to obtaining FAA certification, as well as other difficult to obtain certifications,” said Nir Gabay, Elsight’s CEO. “This Halo POC and integration is strategically invaluable for us, as we intend to show the world a proven solution to solve the issues presented by BVLOS drone operations.”

“We look forward to having Elsight as a strategic partner,” said Meir Kliner, Airobotics’ Co-Founder and Senior Vice President of R&D, “Integration of Elsight’s Halo adds value to our system and further enhances its capabilities for longer-range drone flights, helping us pave our way towards our goal of becoming the most valuable data collection system to power smart cities.”

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For more information, please contact:

Corporate Enquiries

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.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

Elsight Limited ACN 616 435 753 T: +61 3 8689 9997 | A: C/- Mertons, Level 7, 330 Collins Street, Melbourne VIC 3000

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/) 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.

Elsight Limited ACN 616 435 753 T: +61 3 8689 9997 | A: C/- Mertons, Level 7, 330 Collins Street, Melbourne VIC 3000