Mr. Bill Frain reports

LIBERTY DEFENSE ANNOUNCES NEW BOARD MEMBER

Liberty Defense Holdings Ltd. has appointed Steve Karoly to the board of directors, effective immediately. Mr. Karoly will replace outgoing chief executive officer Bill Frain, who is leaving the company at the end of October, on the board.

"We are extremely pleased to welcome Steve to the board of directors," said John Percival, chairman of Liberty Defense. "Steve has strong experience in government and transportation security from his years at TSA (Transportation Security Administration), Customs & Border Protection, and K2 Security Screening. He brings valuable insights into federal security requirements, procurement and the deployment of security technologies across the nation's transportation infrastructure."

Mr. Karoly joins board of directors

Mr. Karoly is a senior security, nuclear and defence executive with more than 30 years of government, transportation and technology industry experience. Mr. Karoly currently is the executive vice-president of K2 Security Screening Group, a leading systems integrator of airport and transportation security infrastructure. Previously, he served as the Transportation Security Administration's acting assistant administrator for requirements and capabilities analysis, where he oversaw a $1-billion budget and led TSA engagement with airlines, airport authorities and local law enforcement agencies. He also served as TSA's innovation leader, where he led development of the agency's innovation strategy and was responsible for enterprise and operational risk analytics.

Earlier in his government career, Mr. Karoly was a senior executive with the Department of Homeland Security's Domestic Nuclear Detection Office and with U.S. Customs and Border Protection. Mr. Karoly also served for 30 years in the U.S. Navy Reserve, retiring as a captain in 2014. He holds a bachelor's degree in marine transportation/nautical science from the U.S. Merchant Marine Academy and a master's degree in systems engineering from Johns Hopkins University.

"Liberty Defense is addressing an important and growing need for advanced security screening solutions," said Mr. Karoly. "Having spent much of my career focused on transportation security, federal acquisition and the deployment of advanced detection technologies, I see significant opportunities for Liberty's technology. I look forward to contributing my experience to the board and helping the company expand its presence across the U.S. government and broader security markets."

About Liberty Defense Holdings Ltd.

Liberty Defense Holdings provides multitechnology security solutions for concealed weapons detection in high-volume-foot-traffic areas and locations requiring enhanced security in public places. Liberty's Hexwave product, for which the company has secured an exclusive licence from Massachusetts Institute of Technology (MIT) as well as a technology transfer agreement for patents related to active 3-D radar imaging technology, provides discrete, modular and scalable protection to provide layered, standoff detection capability of metallic and non-metallic weapons. Liberty has also recently licensed the millimetre-wave-based, high-definition advanced imaging technology (HD-AIT) body scanner and shoe scanner technologies as part of its technology portfolio. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions.

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