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General Dynamics Land Systems selects KWESST Phantom electronic decoy for new U.S. military vehicle program

Ottawa – November 12, 2021 – KWESST Micro Systems Inc. (“KWESST” or the “Company”) today announced that General Dynamics Land Systems (“GDLS”) has selected KWESST’s Phantom™ electronic battlefield decoy as part of its ongoing efforts to develop a next-generation multi-domain mobile capability at the tactical level.

Over the next eighteen months, the KWESST engineering team will be working in close collaboration with GDLS to support readying a prototype vehicle with PhantomTM on board for trials by their U.S. military customer in the first part of 2023.  The PhantomTM capability will be designed to meet evolving Electro-Magnetic Spectrum Operations (“EMSO”) tactics, techniques, and procedures to be employed by vehicle operators in an RF contested environment. 

KWESST stated that should GDLS be the successful bidder for the planned follow-on production program, and include the PhantomTM, the potential value to KWESST could be USD $40 million or more, depending on the number of PhantomTM units per vehicle.

“Today’s announcement represents an important validating milestone and significant potential order flow for KWESST, with multi-year visibility,” said Jeff MacLeod, KWESST founder, President and CEO. 

The Company added that the U.S. military customer is at the forefront of thinking as it re-aligns to an operating environment in which EMSO capability is critical to operational superiority against peer and near-peer adversaries.  “A capability like Phantom™ is a force multiplier,” said MacLeod.  “It is a programmable radio frequency (“RF”) device that can mimic the electronic communications of NATO forces, thus fooling adversaries as to their location. As well, itcan detect and display the RF signatures of both adversaries and friendly forces, thereby enabling reconnaissance patrols to plan and train for EMSO operations for maximum effect.”

On October 4th KWESST’s announced that it was in advanced negotiations with a global defense contractor to provide PhantomTM units as part of the contractor’s tender for armored vehicles to a large NATO customer. “We are pleased to confirm that these negotiations were with GDLS and that we have now entered into a Memorandum of Understanding with them, leading to today’s announcement,” concluded Mr. MacLeod.

As described in the Company’s October 4th press release, the opportunity confirmed today is one of several in progress with NATO customers regarding PhantomTM as various end users pursue programs to create EMSO capability at the tactical level.

About GDLS

General Dynamics Land Systems is a global leader in designing, engineering, producing, supporting and sustaining tracked and wheeled military equipment, with military customers around the world.

https://www.gdls.com/

About KWESST

KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company’s current portfolio of unique proprietary offerings include its unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market, including law enforcement and personal defence. KWESST is also involved in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCSTM (Tactical Awareness and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other KWESST products include counter-measures against threats such as drones, lasers and electronic detection. These include the autonomous GreyGhostTM soldier-portable micro drone missile system that defends against small hostile drones including swarms using high-speed kinetic impact; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel and the PhantomTM  electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE. KWESST trades on the TSX Venture Exchange under the symbol KWE and on the U.S. OTCQB under the symbol KWEMF.

Contact:  Jason Frame, Investor Relations: frame@kwesst.com 

For more information, please visit https://kwesst.com/  

Cautionary Note Regarding Forward-Looking Statements 

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the expected size of the PhantomTM contract should GDLS win the tender for the armored vehicles . Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. KWESST disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. 

About KWESST
KWESST deveops and commercializes high-value ultra-miniaturized technology applications that make a critical difference to the safety and operational effectiveness of personnel in the defence and security community. The company’s current portfolio of unique proprietary offerings include: its signature TASCS™ (Tactical and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons; the autonomous Grey Ghost™ kinetic impact missile system that defends against small hostile drones including swarms; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel; and, the Phantom Tactical Electronic Decoy to mask the electromagnetic signature of friendly forces with decoy “phantom” signatures at false locations to deceive and confuse adversaries. All systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems including Frontline, Edge, Killswitch and ATAK (Android Tactical Assault Kit) among others. KWESST also has developmental “smart ordnance” projects including its “Shot Counter” system, which records the number and type of rounds fired, for optimized firearms maintenance and performance. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE.

The Company trades on the TSXV exchange under the symbol KWE. For more information please visit kwesst.com.