Mr. David Luxton reports

KWESST RECEIVES NOTICE OF CONTRACT AWARD FOR APPROXIMATELY $20M OVER FIVE YEARS FOR SOFTWARE SYSTEMS DEVELOPMENT FOR CANADIAN DEPARENT OF NATIONAL DEFENCE

Kwesst Micro Systems Inc. has received notification of contract award under a joint venture with two other defence industry partners, to perform software systems engineering work for the Canadian Department of National Defence (DND). The contract component for Kwesst is valued at a minimum of $4-million annually for a five-year initial contract, followed by five one-year options.

Under the terms of the joint venture, partners are combining their respective expertise in the Canadian and international defence command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) domain to offer specialized software development and integration solutions to the Canadian Army.

The initial term of the contract runs to May, 2028, with work expected to commence late summer or early fall of 2023 after satisfying certain formalities and work plan definition customary for a contract of this nature.

Kwesst commented that the contract win represents an important validating milestone in its growth strategy as a land tactical digitization development and integration house. "It embeds Kwesst as a vital force development partner for the Canadian Army as it implements its digital modernization strategy," said David Luxton, executive chairman at Kwesst. "It also demonstrates the power of working with strong industry partners to achieve contract wins like this.

"Today's announcement, coupled with other pending opportunities, is a pivotal development in our strategy to ramp up revenue and multiyear backlog into 2024 and beyond, for a predictable base of business centred on our digitization capabilities. Those digitization service offerings, in turn, are already pulling in opportunities to sell counterthreat systems, like our digital battlefield laser defence system (BLDS) and our digital Phantom battlefield electronic decoy system. This is, therefore, a very important and exciting juncture for the company."

About Kwesst Micro Systems Inc.

Kwesst develops and commercializes breakthrough, next-generation tactical systems that meet the requirements of security forces and personal defence for overmatch capability against adversaries. The company's current portfolio of unique proprietary offerings includes its unique non-lethal PARA OPS system, with application across all segments of the non-lethal market, including law enforcement and personal defence. Kwesst is also engaged in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCS (tactical and situational control system) for real-time awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other Kwesst products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate on their own or integrate seamlessly with OEM (original equipment manufacturer) products and battlefield management systems, and all come integrated with ATAK. The company is headquartered in Ottawa, Canada, with operations in Stafford, Va., and representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

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