CONCEPT DESIGN MILESTONE FOR DHS SELF-SCREEN CHECKPOINT STATION ACHIEVED

Successful first stage design milestone for Micro-X Passenger Self screening station - Unlocks $0.7m second phase of work

ADELAIDE,Australia and SEATTLE,May 24,2022 -- Australian hi-tech company Micro-X Ltd (ASX:MX1) (Micro-X or the Company),a leader in cold cathode x-ray technology for health and security markets globally,is pleased to announce that the Company's US subsidiary,Micro-X,Inc. has met the key Initial System Concept milestone as part of its development contract funded by US Department of Homeland Security (DHS) Science and Technology Directorate (S&T) Screening at Speed Program.

Key Points

Micro-X concept design of the Passenger Self-Screen Checkpoint system has been accepted by DHS

First stage design milestone achieved on time and on budget - US$0.6m milestone payment invoiced

Micro-X as system integrator led work with consortium partners,Elenium Automation and Monash University integrating extensive passenger and stakeholder feedback

Concept design leverages advances made by Micro-X with its miniature baggage scanning design for DHS

Another step closer to the deployment of Micro-X's self-screening station for North American Airports.

Micro-X has been advised that its Initial System Concept Briefing with the DHS as part of its Passenger Self-Screening Checkpoint design work,had been accepted by the DHS and this milestone has been successfully completed. This officially completes the first phase of the Passenger Self-Screening Checkpoint design and approximately US$0.6 million has been invoiced to DHS.

In this design phase,Micro-X leads a consortium of partners including Monash University and Elenium Automation to establish the basic layout and design of a passenger self-screening checkpoint. This work leverages Micro-X's miniaturised baggage computed tomography (CT) design in combination with a unique millimeter (mm) wave on-person screening technology,to create a small modular self-screening checkpoint station. The layout of the checkpoint station and the passenger workflow through the self-screening station also incorporated extensive research and passenger interviews by Monash University and stakeholder feedback.

Micro-X's proprietary Passenger Self-Screening Checkpoint concept delivers a number of important objectives which will improve both passenger experience and airport throughput:

Small footprint - to enable up to 8 stations in the same footprint as a conventional security checkpoint lane;

Open design with well-defined and 'controlled' space - to ensure passenger comfort; enable easy operator engagement with passengers inside the station; and ensure passenger flow is regulated so that passengers and their bags are fully screened before entering the secure part of the airport;

Simple consolidated screening of passengers and bags - enables passengers to move rapidly through screening;

Accommodate passengers with additional needs - those traveling with children or requiring assistance;

Available technology - technology is either currently available and/or being funded by DHS S&T to be at prototype level in less than a year; and

Security by Design: System components and security processes achieve security objectives without the need for additional action.

In the next phase of the project,which is worth a total of approximately US$0.7 million over the next 6 months,Micro-X will work with its partners to model the proposed system concept using a combination of simulations and mock-ups to test andfurther refine the concept. During this phase,Micro-X will also continue to refine the workflow through the system to meet the needs of a range of airplane passengers and to include the developments made in the miniaturised CT and mm-wave on-person screening. Micro-X will conclude this next phase by testing the new concept with passengers,airline and airport representatives,and DHS and TSA representatives in our Seattle Office.

Dr Brian Gonzales,Micro-X Inc. CEO & General Manager of the Checkpoints Business Unit,commented:

"Formally presenting this new refined self-screening checkpoint concept to DHS is an exciting milestone for Micro-X and it represents the culmination of significant research and system design effort lead by Micro-X and conducted in Australia,the US,and Europe. We are excited to see the self-screening concept transforming from a blue-sky vision into a realistic and feasible system. Our concept shows that the combination of our unique miniaturized x-ray technology with the many advances in passenger automation and screening could dramatically improve passenger experience and increase passenger throughput,all while sustaining or even improving the level of security at the airport checkpoint."

About Micro-X

Micro-X Limited (the Company) is an ASX listed hi-tech company developing and commercialising a range of innovative products for global health and security markets,based on proprietary cold cathode,carbon nanotube (CNT) emitter technology. The electronic control of emitters with this technology enables x-ray products with significant reduction in size,weight and power requirements,enabling greater mobility and ease of use in existing x-ray markets and a range of new and unique security and defence applications. Micro-X has a fully vertically integrated design and production facility in Adelaide,Australia. A growing technical and commercial team based in Seattle is rapidly expanding Micro-X's US business.

Micro-X's product portfolio is built in four,high margin,product lines in health and security. The first commercial mobile digital radiology products are currently sold for diagnostic imaging in global healthcare,military and veterinary applications. An x-ray camera for security imaging of improvised explosive devices is in advanced development. The US Department of Homeland Security has selected Micro-X to design a next-generation airport checkpoint portal with self-service x-ray. A miniature brain CT imager for pre-hospital stroke diagnosis in ambulances,is being developed with funding from the Australian Government's Medical Research Future Fund.

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