ELSIGHT LIMITED — Capital/Financing Update 2019

Sep 26, 2019

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ASX Announcement

27 September 2019

Elsight Product Update – Halo

Highlights

• Significant interest since MWC19 Barcelona has resulted in the completion of a number of proof-of-concept (POC) trials.

• Delivery of first Halo units for testing and positive feedback received demonstrates validation of technology and commercial offering.

• Based on observations of Halo in action, the Company has identified the opportunity to achieve significant further performance enhancements which will be incorporated into version 1.1 – due for shipping in December 2019.

• Shift of focus to Halo 1.1 will have a revenue impact on previous forecasts with expected orders to shift into early 2020

Elsight Limited (ASX: ELS) (‘Elsight Ltd, ‘Elsight’ or ‘the Company’), a cutting-edge communications and live data, video and audio transmission solutions provider, is pleased to provide an update on its flagship offering – Halo.

Enhancements to Halo underway following completion of successful trials

Since the commercial launch of Halo in February 2019, Elsight has successfully secured a number of proof-of-concept (POC) trials and lab tests, in various stages of completion, with companies such as:

• Oneberry Technologies, the leader in remote surveillance solutions in Singapore, and one of the fastest growing companies in the country

• TRD, a leading anti-drone solutions firm in Singapore

• Israel Aerospace Industries (IAI), a leading Israeli defence company manufacturing robotics and unmanned vehicle

• An elite law enforcement agency in a Southeast Asian country[1]

Next iteration of Halo to incorporate enhancements based on feedback from POC partners

Our POC partners and independent experts have provided us with valuable feedback from in-the-field testing. Based on this feedback, the Company has commenced further extensive research testing and development. This process has already identified the opportunity to build significant performance enhancements into a new iteration of Halo – Halo v.1.1 – to support existing pilot programs and deliver an end product that meets the required specifications of these prospective customers.

The feedback received and ongoing close engagement with these partners demonstrates the commercial viability of Halo, and the Company is working towards the goal of securing commercial orders for Halo from one or more of these initial partners.

1 For reasons relating to national security this law enforcement agency cannot be named.

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

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Ongoing product testing and positive feedback received to date has underlined the significant market opportunity that exists for Halo in key commercial industries such as autonomous vehicles, security, defence and aviation. The Company is continuing commercial discussions with multiple commercial opportunities across these industry segments to add paid proofs-of-concept (POCs) to the pipeline based on Halo 1.1.

Expected impact of Halo v.1.1

The decision to incorporate significant further performance enhancements into version 1.1, will also include a change in the design of its casing – due for shipping in December 2019. Due to its material advantage over the current version’s capabilities - the later availability of this new and improved version is expected to cause a shift of orders for Halo from late Q4 to Q1/2020.

The focus for Elsight now is on near-term commercialisation and to deliver first revenues, after converting successful proofs-of-concept that we have overseen to date. The Company is also presently engaged in a number of commercial discussions with collaboration partners in Singapore as it focuses on converting a strong pipeline of opportunities for its flagship offering.

-ENDS-

For further 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 Enquiries

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

About Elsight

Elsight (ASX:ELS) is a cutting-edge communications and live data transmission solutions provider for organisations across defence and security, IoT, sensitive facilities management, large-scale Safe City projects, as well as surveillance and protective activities. The platform supports video capturing, recording, and highly secured transmission that can prevent against video interception and hacking. With an unmatched level of reliability, our products provide the lowest latency and highest adaptive bandwidth over cellular networks to ensure safe and stable signals.

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