Mr. Philippe Deschamps reports

HELIUS MEDICAL TECHNOLOGIES, INC. ANNOUNCES MRI CONFIRMATORY EVIDENCE OF NEUROPLASTIC CHANGE AFTER INVESTIGATIONAL PONS TREATMENT PRESENTED AT THE 2018 JOINT ANNUAL MEETING ISMRM ESMRMB IN PARIS, FRANCE

Helius Medical Technologies Inc. has noted that an important paper entitled, "Gray matter volume changes following Cranial Nerve Non-invasive NeuroModulation in patients with traumatic brain injuries," was presented at the 2018 joint annual meeting for the International Society of Magnetic Resonance in Medicine (ISMRM) and the European Society for Magnetic Resonance in Medicine and Biology (ESMRMB) in Paris, France, which occurred between June 16, 2018, and June 21, 2018. This research from independent investigators demonstrates confirmatory evidence of changes in the brain after PoNS (Portable Neuromodulation Stimulator) treatment -- the combination of the investigational PoNS medical device that delivers tongue-based neuromodulation, plus physical therapy to address balance disorder after mild to moderate traumatic brain injury (mTBI).

In two separate studies investigating PoNS treatment, a large proportion of subjects with chronic balance disorder after mTBI improved dramatically. At one trial site, a subset of participants underwent sequential magnetic resonance imaging (MRI) to evaluate grey matter volume in areas of the brain associated with balance. In this study, nine of 44 subjects consented to have multiple MRI scans over the 26 weeks of the study to evaluate changes in brain grey matter volume (GMV). All of these subjects had significant improvements in balance and gait, but were chosen randomly.

Dr. Vivek Prabhakaran, associate professor of radiology/neuroradiology, director of Functional Neuroimaging, program leader of neuroimaging research and principal investigator at the University of Wisconsin, Madison, stated, "We're excited to report preliminary results showing brain changes in regions involved in balance and gait after using the investigational PoNS device in TBI patients afflicted with balance and gait problems." Only responders were studied with MRI in this trial. Therefore, it is unknown whether GMV changes would be seen in non-responders.

Ali Rezai, executive chair at West Virginia University's Rockefeller Neuroscience Institute, associate dean and John D. Rockefeller IV professor in neuroscience in Morgantown, W.Va., and a member of Helius Medical Technologies' scientific advisory board, stated, "Dr. Prabhakaran and colleagues have provided further evidence that the clinical improvement with the PoNS system can be associated with plasticity and structural changes in the brain."

"Helius is committed to developing non-invasive therapies to combat the symptoms of neurological disease or trauma. In doing so, we are gratified to see results from the best and brightest carrying out high-quality science to validate our findings," added Philippe Deschamps, Helius Medical Technologies' president, chief executive officer and chairman. "This work by Dr. Prabhakaran is indicative of our mission and there is a lot more to come."

About Helius Medical Technologies Inc.

Helius Medical Technologies is a neurotech company focused on neurological wellness. The company's purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain's ability to heal itself. The company's first product in development is the Portable Neuromodulation Stimulator (PoNS).

We seek Safe Harbor.