December 2021 Edition Dear hlnbidoffer, This is the first of our new series Elsight monthly activity update Newsletters. These monthly newsletters will contain important news and updates to make you, the reader, more aware of our activities. Apart from elaboration on material announcements made on the ASX platform, we will also use this channel to update you on our activities, initiatives, and relevant developments which we expect will lead to material progress on our strategy.[1] As most followers of Elsight are aware, during 2020 and 2021, the Company made a deliberate strategic change by moving from a multi-product, project-oriented strategy, to a single solution product focused on an exciting, but still emerging unmanned market. While there are many vertical applications for this, our initial focus has a strong emphasis on providing BVLOS[2]control solutions for Drone operations. While we are excited about the future potential of this pioneering space, we are still in an early, pre-launch state. Currently, our prospective and existing customers are starting with limited quantities to support only their lab trials, demos, and first deployments. While at this stage a handful of Halo are sufficient, once deployed commercially at scale, those quantities will grow with each one of those prospects/ customers. Therefore, the revenues we’re about to receive now, including the largest projects, are not yet considered material. However, revenues will gradually increase in line with the growth of the respective projects, new use cases, and the increase in the number of drones per use case. Even in the largest events, like the recent NAAMA[1]Tel-Aviv (with tens of thousands of flights over large and densely populated cities) required only a handful of Halos by each of the participants, resulting in no material revenues. We will keep you informed of our progress as we grow the number of commercial deployments, POCs, successful trials and design wins in this nascent but exciting market. [1]Forward-Looking Statements: the company does not make forward-looking statements about expected revenues. Any material announcements will be made on the ASX platform. Information provided in this newsletter is to share general progress and explain information or correct misinformation that is in the public domain. [2]BVLOS = FlightsBeyondVisualLineofSight [3]NAAMA =Hebrew acronym forUrban Aerial Transportdiscussed in the last Quarterly update.

	IN THE NEWS Elsight is proud to support DroneUp in their Walmart drone delivery program. on 22.11.2021 Walmart and DroneUp Announce "First Multi-Site Commercial Drone Delivery Operations”. Elsight solution is intimately integrated and working with our partner DroneUp on this official Walmart project deployment –at this point with no material revenues to report as yet

	Elsight’s co-founder & CTO, Roee Kashi and DroneUp team during service testing and launch preparation in September 2021

DRONEUP HIGHLIGHTS DroneUp the recognized industry leader in UAV commercial solutions choose Elsight the established industry leader in UAV connectivity solutions to working together with other participants to enable Walmart’s ambitious drone delivery program, with a fleet of drones in each store. DroneUp is leveraging Elsight’s Halo bonded connectivity solution to ensure absolute connectivity to their first UAVs for commercial deliveries by Walmart. On November 22nd, 2021 DroneUp and Walmart announcedFirst Multi-Site Commercial Drone Delivery Operationsworking 12 hours a day 7 days a week, and also launched their drone delivery orders website (com/).. This Walmart drone program is one of the largest and most ambitious drone parcel delivery deployments due to the sheer number of Walmart stores. Walmart is understood to operate approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. They employ 2.2 million associates around the world. In the USA they are ideally positioned to benefit from drone delivery services with 4,700 stores stocked with 120,000 of the most purchased items, located within 10 miles of over 90 percent of the U.S. population. To avoid any doubt, despite the November 22ndjoint Walmart and DroneUp announcement, this is a slow deployed project, that will take time to reach material revenues.

	MORE HIGHLIGHTS

	During November, the Elsight team had a successful visit to Canada to deepen the relationship with a local integrated solution provider in the drone arena. During this trip, the team has engaged collective partners and secured an additional three POCs tied to these partnerships.

	Elsight team has recently takenpart at the Dawn Of Drones podcast as part of Dronelife innovation month (Watch the show),

	During the month of November, Elsight and one of our partners יdemonstrated a drone solution for the Israeli police which resulted in the first orders of the systems.

	In case you missed out 3Q21 investors webinar you can access the recordingHEREor on our website under theinvestor's relations page.

OTHER RELATED DRONE APPLICATIONS Elsight’s partner Airobotics has recently updated the TASE (Tel-Aviv Stock Exchange) on the progress of an order received from SJD (SJ Defence, the defense arm of Surbana Jurong (SJ) Group) for the purpose of carrying out a dedicated project to prove its system’s capability in an urban environment in Singapore. This project includes deployment of several docking systems, skipping between docking stations, communication up to 10 km distance by a cellular network (with our Halo), and the use of the company's payloads, including a defibrillator and other lifesaving medical gear that is transferred to the field in minutes by drones. Upon completion of the flight plan milestone, Airobotics completed about 95% of the total order of the project. Furthermore,Airobotics has joined the fight against Malariaand entered a new market, signing an initial contract with Zzapp Malaria to supply aerial data and analysis as part of Malaria eradication efforts in São Tomé, Africa.

PRODUCT DEVELOPMENT UPDATE As part of the company's continuous effort to create the ultimate connectivity solution for unmanned platforms; During November, Elsight released Halo software version 10. With the release of version v.10, Halo is the only solution on the market that can prioritize between communication links according to the user's preference, optimizing on latency, bandwidth, and cost. In addition, the version includes additional features based on the market needs.