ELSIGHT LIMITED — Capital/Financing Update 2020

Jul 29, 2020

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ASX Announcement 30 July 2020

Elsight and Kinetx Prime, LLC Reach A Distribution Agreement in Principle for the United States Market With an Initial Order Commitment of US$1.6M.

Highlights

• Securing US FCC certification has enabled Elsight to enter a strategic partnership with Kinetx Prime to deliver direct-to-consumer telehealth services in the US with its flagship “Halo” product.

• Elsight has received an initial order of USD$1.6M (A$2.3 million) with the prospect of material repeat orders up to the size of the initial order, over the course of the next 36 months.

• Elsight has entered a new and substantial market driven by the twin issues of the increase in the COVID-19 pandemic in America and limited access to normal healthcare services in underserved communities where availability of local hospital services are limited and far away, starting with hundreds of rural medical facilities.

• Kinetx Prime, LLC, based in Alpharetta, GA, USA, focuses on the application of technology solutions using private and public cellular networks to enhance the connectively of rural communities and urban commercial applications. Leveraging the innovative design and fabrication approaches of Qube-MRS, LLC, Kinetx Prime offers infrastructure solutions and services to bridge the digital divide in underserved communities.

• This represents the first time that Halo will be mass distributed in the business-to-consumers (B-to-C) market in North America.

• After a substantial regimen of trials and certification processes, Halo proof-of-concept (POC) projects are expected to be much shorter driving new deals with material revenues during the remaining of 2020 and beyond.

30 July 2020 – Elsight Limited (ASX: ELS) (‘Elsight Ltd, ‘Elsight’ or ‘the Company’), an ASX-listed company that develops advanced communication technologies for real-time data, video, and audio transmission over cellular networks in mission-critical environments, announced today its partnership with Kinetx Prime, LLC which will result in the first mass distribution of Halo to the B-C market in North America. This is a significant opportunity, starting with an initial order of USD$1.6M (A$2.3 million) prior to service launch, with expected repeat orders of up to the same value over the course of the next 36 months.

This deal is the first material deal resulting in substantial revenues resulting from the extensive efforts of adaptation and development of issues learned during POCs and finally entering into the required certification process for US market wireless communications applications.

The Covid-19 crisis in the USA migrated from the large northern cities like New York and has now increased substantially in rural and remote communities across the nation, especially in the south.

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Alongside the pandemic, is the issue of patients with existing chronic or new conditions, being scared or unable to access the healthcare system to get the normal care they need. The White House and Congress have acknowledged that millions of Americans do not have a hospital access in their vicinity and that their only hope for adequate care is to have access to telehealth systems with substantially better connectivity than what is available in underserved areas today. This acknowledgement offers opportunity to companies such as Elsight who specialize in developing and deploying solutions to areas with limited to almost non-existing cellular coverage, and the need to supply signal from a large distance.

To address these challenges in “rural health clinics”, Elsight has entered into a strategic partnership with Kinetx Prime with the aim of bringing a significant improvement in bridging the digital divide in wireless communications and connectivity to underserved and more remote communities. The goal of this initiative is to improve remote healthcare which is the only alternative for millions of Americans living without a nearby hospital or clinic.

To better understand the magnitude of this opportunity, according to the U.S. Census Bureau, at the time of the 2010 Decennial Census, almost 60 million people (about 19 percent of the population ) lived in rural areas of the United States.

Elsight has partnered with Kinetx Prime to deliver direct-to-consumer telehealth solutions using new wireless communication capabilities to connect patients, physicians, ambulances, and hospitals in rural America suffering from a real lack of adequate cellular coverage. The Halo unit, when combined with appropriate antennas and ancillary equipment by Kinetx Prime, enable cellular services in these remote and underserved areas to be aggregated into an effective interactive videobased telehealth solution.

Upon concluding this partnership agreement, Nir Gabay founder and CEO of Elsight said, “We are delighted to have partnered with a company that shares our vision and to be able to bring about positive change during a time of crisis and pain. I believe that going forward, this project will enable Kinetx Prime and Elsight to contribute to helping save lives while cultivating a brand-new market with large and sustainable revenue opportunities. To address the unique challenges of data security and privacy, Halo is going through a thorough HIPPA, GDPR, and CCPA evaluation. I look forward to the mass distribution of Halo in the B to C sector in Northern America.”

Joe Page, Kinetx Prime LCC, Founder and CEO added, “Kinetx Prime will drive growth of the ELsight Halo product into U.S. markets to provide much needed wireless connectivity service to underserved communities. COVID-19 exposed the critical need to bridge the digital divide in underserved communities. Using the Halo product, Kinetx Prime conducted a successful Telehealth trial with a regional university school of medicine to allow them to connect beyond their traditional network reach”.

In addition to working on this and other telehealth initiatives, the Company is proceeding with or has restarted several POC trials in various industry segments with prospective technology company partners as previously announced to the market.

Authorized for release by the Board of Directors of Elsight Limited.

-ENDS-

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For more information, please contact

Corporate, Business, and Media 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 (on-the-move or fixed) for large Safe-City projects, sensitive facilities management, and surveillance and protective activities. The platform supports data and video capturing, recording, and highly secured transmission against data and 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 to industrial security, broadcasting, first responders and healthcare.

About Kinetx Prime

Kinetx Prime, LLC represents a combined total of 100+ years in wireless communications experience providing executive, technical, project management and installation expertise. Services include indepth proficiency on solutions for RF and Fiber network design, regulatory authorization, project management, deployment, implementation, and ongoing operations management.

Together with ELsight, Kinetx Prime will market turnkey solutions to underserved U.S. communities using the Halo cellular ethernet router product that allows multiplexing of multiple wireless carrier communication signals, thus increasing overall bandwidth in low signal areas for the transmission of heavy data and video with ultra-low latency. Kinetx Prime’s innovative technology solutions will bring highspeed Internet connections to the roughly one in four unserved rural households. The Digital Divide does not discriminate, and large swaths of the U.S. lack high-quality Internet access – both rural and urban. Using combinations of the latest-generation technologies like Halo, Kinetx Prime, together with ELsight, will help bridge the Digital Divide across the U.S. to enable accessible, affordable Internet for all Americans.