Mr. Randy Dewey reports

BAYLIN TECHNOLOGIES ANNOUNCES CLOSING OF BOUGHT DEAL OFFERING

Baylin Technologies Inc. has closed its previously announced bought deal offering of subscription receipts and 6.5-per-cent extendible convertible unsecured debentures of the company. The offering was conducted by a syndicate of underwriters led by Raymond James Ltd., and including Paradigm Capital Inc. and National Bank Financial Inc. The subscription receipts and debentures were qualified by a prospectus supplement dated July 3, 2018, to a short-form base shelf prospectus dated Nov. 16, 2017, filed in each of the provinces and territories of Canada. The offering is subject to the final acceptance of the Toronto Stock Exchange.

An aggregate of 7,419,355 subscription receipts and $17.25-million principal amount of debentures were sold pursuant to the offering, including 967,742 subscription receipts and $2.5-million principal amount of debentures issued as a result of the underwriters' full exercise of the overallotment option. In consideration for the services provided by the underwriters, the company paid the underwriters a cash commission equal to 3 per cent for securities purchased by certain directors and officers of the company, and 6 per cent for the balance of the aggregate gross proceeds of the offering. The company intends to use the net proceeds of the offering to finance the previously announced proposed acquisition of Alga Microwave Inc., and for working capital and general corporate purposes.

Certain directors and officers of the company, directly and indirectly, purchased an aggregate of 3,791,724 subscription receipts and $8,692,000 principal amount of debentures, pursuant to the offering. By virtue of the participation of such insiders, the offering constitutes a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101.

President and chief executive officer Randy Dewey stated: "We are very excited about the opportunities now before us. We are well positioned in the satellite connectivity products vertical and in the wireless antenna marketplace. The past two acquisitions bring us exceptional millimetre wave and active product capabilities as we are planning for the 5G network deployments that are ahead."

About Baylin Technologies Inc.

Baylin is a diversified leading global wireless technology management company. Baylin focuses on research, design, development, manufacturing, and sales of passive and active radio frequency products and services. Baylin aspires to meet customers' needs and anticipate the direction of the market.

We seek Safe Harbor.