Mr. Sean Homuth reports

KWESST CONTRACTS U.S.-BASED NORDON INC. FOR THE MANUFACTURE OF NEW ARWEN PRODUCTS - ENSURING HIGHEST QUALITY, SHORT LEAD TIMES, AND TARIFF-FREE PRODUCTION

Kwesst Micro Systems Inc. has reaffirmed its growth outlook and announces expansion of its manufacturing capabilities into the United States.

The company is proud to announce a strategic partnership with a contract manufacturer in the United States to bring elements of its production stateside under the signing of a non-binding memorandum of understanding (MOU) dated March 27, 2025. The parties will work toward a manufacturing agreement that will outline the terms of a long-term contract manufacturing arrangement by June 1, 2025. This move enhances cross-border collaboration, reduces trade barriers and tariffs, and strengthens its North American supply chain.

Kwesst has contracted Nordon Inc. to commence tooling for scaled production of its Arwen less-lethal universal 40-millimetre baton projectile. Nordon has already completed tooling for scaled production of the majority of the components related to the Para Ops cartridges and projectiles which will be marketed under the Arwen brand. Nordon, located near the historic Corn Hill neighbourhood of Rochester, N.Y., and in the former Kodak distribution facility on Lexington Avenue, is a HUBZone-certified manufacturer (historically underutilized business zone). The HUBZone program is a U.S. Small Business Administration initiative that promotes economic development in distressed areas by providing preferential access to federal procurement opportunities. This partnership not only strengthens Kwesst's U.S. presence but also helps drive local employment, ensures high-quality production and enhances supply chain efficiency -- all while supporting U.S. law enforcement agencies with best-in-class, American-made products.

"We see significant growth potential with these two products being built in the U.S. and proudly carrying the Made in America designation," said Sean Homuth, president and chief executive officer of Kwesst. "By manufacturing domestically, we enhance product availability, streamline logistics, and reinforce our commitment to providing quality solutions to law enforcement and eventually civilian markets in the United States."

Paul Reed, chief executive officer of Nordon, echoes Mr. Homuth's sentiment: "We are excited to partner with Kwesst in bringing these advanced less-lethal solutions to market. Our state-of-the-art facility and deep expertise in precision manufacturing will ensure that Kwesst's products meet the highest standards of quality and reliability while supporting domestic job creation and economic growth."

"These adjustments will strengthen our presence in the U.S. and ensure we are well positioned to expand our footprint into this very important market," continued Mr. Homuth, "as Kwesst's strategic expansion into U.S. manufacturing addresses logistical challenges, regulatory compliance barriers and tariffs, ensuring smoother market access for its public safety solutions.

"Kwesst is committed to building on its momentum in both Canada and the United States," said Mr. Homuth. "We also remain committed to maintaining and expanding our primary manufacturing footprint in Canada for products destined for the Canadian market."

About Kwesst Micro Systems Inc.

Kwesst develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational 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 stand-alone or integrate seamlessly with OEM (original equipment manufacturer) products and battlefield management systems, and all come integrated with TAK (Team Awareness Kit). The company also has a new proprietary non-lethal product line branded Para Ops with application across all segments of the non-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada, with representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

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