Mr. Bill Riker reports

LIBERTY ACHIEVES SIGNIFICANT PRODUCT MILESTONE WITH ACTIVE REAL-TIME 3D IMAGING

Liberty Defense Holdings Ltd. has achieved active real-time 3-D imaging functionality with its proprietary threat detection system, Hexwave. The real-time 3-D imaging represents the latest significant step forward as the company progresses to completion of alpha testing by year-end.

Bill Riker, Liberty's chief executive officer, commented: "Our team continues to deliver against our aggressive development timeline and the achievement of active real-time 3-D imaging is yet another significant accomplishment. We look forward to continuing to deliver against our stated objectives in the coming months."

On June 6, 2019, Liberty provided an in-depth understanding of Hexwave and its four subsystems:

• Antenna array and transceiver (captures real-time data);
• 3-D radar image generation (converts captured data into 3-D radar images);
• AI and deep learning (interprets the data and 3-D radar images to detect threats);
• Smart interface functionality (provides connectivity to existing security systems).

Following the completion of the Hexwave prototype, which was demonstrated at Liberty's centre of excellence in Atlanta, Ga., on Sept. 26, the company has continued to advance the speed and efficiency of the real-time 3-D imaging. The achievement of active real-time 3-D imaging, created from 400,000 data points in the Liberty Defense labs using the Hexwave prototype, is a significant milestone. Machine learning models are trained using this 3-D imaging and data to make its prediction about the weapons or non-threatening objects. The completion of hardware systems (antenna array, transceiver, CPU/GPU) and software for acquiring the data used to create real-time images further derisks Hexwave's program.

Aman Bhardwaj, chief operating officer and president of U.S. operations, commented: "This represents a significant step forward in Hexwave's development. The ability to now generate active real-time 3-D imaging using the Hexwave prototype will enable the team to continue its rapid development of Hexwave with the goal of completing the alpha testing by the end of the 2019. After this milestone the focus of development will shift from transferring and developing the technology to training, testing and improving the design for production and commercialization. We are very excited to have been able to achieve this milestone given the significant changes that have occurred to the underlying subsystems since the technology behind Hexwave was first developed in MIT Lincoln Lab."

Liberty continues to make strides to meet the initially disclosed aggressive timeline, and is well on its way to the completion of alpha testing by year-end, as noted in its June 24, 2019, release.

Liberty has announced 11 high-calibre beta test partners to date, including Port Tampa Bay, the University of Wisconsin, Pearson International Airport, the Metro Toronto Convention Centre and the Maryland Stadium Authority, and is looking forward to commencing the building of its initial beta units upon completion of the system integration phase of the alpha testing.

Hexwave is occupying a new and unique segment in the security market, set apart by nine distinct discriminators that identify it from other security systems on the market. These discriminators include:

• Metallic and non-metallic detection;
• Indoor and outdoor installation;
• Patented real-time scanning;
• Smart functionality and capability to interact/integrate with existing security systems;
• Covert and overt installation;
• Routine software and artificial intelligence updates;
• High throughput (over 1,000 people/hour);
• Operational agility; portable and mobile design;
• No privacy concerns; no personally identifiable information is collected.

About Liberty Defense Holdings Ltd.

Liberty provides security solutions for concealed weapon detection in high-volume foot traffic areas and 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 that are packaged into the Hexwave product. The system is designed to provide discrete, modular and scalable protection to provide layered, stand-off detection capability. This is intended to provide a means to pro-actively counter evolving urban threats.

We seek Safe Harbor.