Frost & Sullivan Publishes Update Coverage Report on Brainsway Ltd.

Continued revenue growth based on the rental model; sufficient cash available in order to continue clinical plans; Expected breakeven in 2019; In light of the company's ability to maintain our expectations the target price has risen to 37.1 NIS

TEL AVIV,Israel,Nov. 27,2018 --The TASE analysis project was launched in 2016 in order to raise investor awareness to TASE listed technology and life-science companies and the markets in which these companies operate,thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.

In order to maintain professional,independent and unbiased analysis,the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

On the 13th of November the company released its 3rd quarter report,below we highlight the main points of this report:

Good financial statistics that indicate the success of company sales using the rental model; sufficient cash funds to support the strategic plan of the company

The revenues for the first nine months of 2018 amounted to $11.6M compared with $7.5M in revenues for these same nine months in 2017 (61% of 2018 revenues came from rented systems).

The operational loss for this 3rd quarter is 26% lower compared with the 3rd quarter of 2017 and amounts to $940K.

Marketing approval for OCD patients represents positive testimony for the use of the company's clinical platform to treat additional indications

In the 3rd quarter (Aug. 17,2018) the company received FDA approval,through the de-novo route,for marketing and sales in the U.S. of the Deep TMS system developed by the company which makes use of an H7-coil to treat Obsessive Compulsive Disorder (OCD).

In 2019 and 2020 we expect the company to receive approval for **cessation treatments and for additional indications (detailed in the following analysis).

We expect the company to breakeven in 2019; the company is expected to continue its market penetration in the U.S.; 2019 will show increased sales in the U.S. market along with the completion of clinical experiments for additional indications

The challenge facing the company is to accelerate sales in both the U.S. and other markets such as Europe. One the one hand,the company operates in all stages of the value chain- from production to distribution,and on the other hand,any problem that arises from one of these stages could hurt the compay's performance.

To date,it appears that the company is operating according to plan. A significant positive development is likely to occur in the coming year in the form of a new indication approval and with further establishment of the company in the U.S. market.

In light of the company's progress in achieving its goals and according to our expectations,we are updating the value of the company to $169.7M / NIS 617.8M (our previous valuation for the company was $149.4M / NIS 544M) corresponding to a target price ranging between NIS 35.3 – NIS 39.0; an average of NIS 37.1.

About the company - Brainsway Ltd. is an Israeli medical device firm focused on the development and commercialization of an H-coil helmet device for Deep Transcranial Magnetic Stimulation (dTMS). dTMS enables non-invasive activation of deep brain structures that can cover a broad range of brain disorders. The company has FDA market approval for Major Depressive Disorder,and wide reimbursement coverage for this indication. The company has recently received positive results in Obsessive Compulsive Disorder (OCD) patients,and will apply for market approval in the US for this indication. Approximately 15,000 patients were treated to date with Brainsway's device. Please clickhere (https://ww2.frost.com/research/equity-research/brainsway-ltd/)About Frost & SullivanFrost & Sullivan,the Growth Partnership Company,works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years,we have been developing growth strategies for the global 1000,emerging businesses,the public sector and the investment community. Contact us: Start the discussionFor further information,please contact:Kristi Cekani

Corporate Communications - Frost & Sullivan,Europe

P: +39.02.4851.6133

E: Kristi.cekani@frost.com

http://www.frost.com