Quickstep : awarded Micro-X contract

ASX/Media Release 14 December 2016

• Supply of composite parts for ultra‐lightweight X‐Ray device
• Qure process provides effective high‐volume production for Micro‐X
• Products to be manufactured in Australia for export markets

Sydney, 14 December 2016 - Quickstep Holdings (ASX:QHL), the manufacturer of advanced carbon fibre composites, today announced that it has been awarded a contract to manufacture a range of carbon fibre composite components for a new portable, ultra‐lightweight X‐ray device being developed by Micro‐X Limited (ASX:MX1). The Micro‐X X‐ray will be sold in North America and other export markets.

Micro‐X is an Australian ASX‐listed company focused on the design, development and manufacturing of ultra‐ lightweight X‐ray imaging products for global healthcare and security markets. Its first device, the DRX Revolution Nano, is an 85 kilogram portable X‐ray machine, significantly lighter than the cumbersome 500‐600kg machines used traditionally in hospitals today. Its small size provides superior flexibility for radiographers when positioning the device for x‐ray examinations.

Micro‐X has a relationship with Carestream Health, formerly Kodak Medical Imaging, which will sell and distribute the DRX Revolution Nano globally. Micro‐X expects to launch production in Q1 2017 at its new production facility in the Tonsley precinct in South Australia, where it is setting up a plant with around 1,000 unit p.a. capacity. Each X‐ray unit contains nine composite assemblies.

Quickstep's CEO and Managing Director, David Marino said: "We are delighted to be working on Micro‐X's game‐ changing medical device technology. This demonstrates the flexibility of Quickstep's composite manufacturing solution. After our technology advances in the past year, the Qure moulding and curing process has the throughput capability to manufacture high‐quality components in volume.

"The Micro‐X contract opens up a new sector opportunity for Quickstep's composite technologies, whilst delivering the next step in production rates applicable to our automotive and aerospace aspirations at potentially 9,000 composite assemblies per annum. Carbon fibre has significant use in the global medical device sector, including X‐ ray machines, medical imaging devices and CT and MRI scanners and given Australia's innovative history in medical devices, we see further volume opportunity in these carbon fibre based products," he said.

Managing Director of Micro‐X, Peter Rowland said: "Quickstep's advanced composites manufacturing capabilities provide us with a higher production rate than traditional autoclave solutions. Their technology has already demonstrated the ability to manufacture lightweight carbon fibre composite parts that meet the high‐level quality and part performance required for the advanced medical device sector globally. As our volumes increase, the flexibility and cost efficiency of Quickstep's processing technologies allows us to consider line side manufacturing next to our assembly facility in South Australia, providing an optimised supply chain and enhancing customer value for these highly visual components"

Micro‐X has completed regulatory testing of pre‐production units. The global mobile medical X‐ray market was valued at US$500 million in 2016.

Principal address: 361 Milperra Road Tel: (02) 9774 0300 ASX Code: QHL

Bankstown Airport NSW 2200 Fax: (02) 9771 0256

www.quickstep.com.au Email: info@quickstep.com.au

Quickstep is also engaged in a number of other New Technology development projects through its Waurn Ponds and German facilities, including projects with tier‐1 industry suppliers, including two leading vehicle manufacturers and a global aircraft manufacturer. These projects are co‐funded by Quickstep and its collaboration partners and expected to lead to further volume production contracts.

The DRX Revolution Nano by Micro‐X

-ENDS-

Quickstep Holdings Limited (ASX: QHL) is an Australian publicly listed company, at the forefront of advanced composites manufacturing and technology development. Quickstep is the largest independent aerospace‐grade advanced composite manufacturer in Australia, partnering with some of the world's largest Aerospace/Defence organisations including: Lockheed Martin, Northrop Grumman, BAE Systems and Airbus.

Quickstep operates from state‐of‐the‐art aerospace manufacturing facilities at Bankstown Airport in Sydney, NSW; a newly established production site for automotive parts manufacturing and R&D/ process development centre in Waurn Ponds, Victoria; and a development and customer support operation in Munich, Germany.

Quickstep is an approved supplier for the international F‐35 Lightning II Joint Strike Fighter (JSF) program ‐ the largest military aerospace program in the world, valued in excess of US$300 billion worldwide. The company has also been selected by Lockheed Martin as the sole supplier of composite wing flaps for the C‐130J "Super Hercules" military transport aircraft.

Quickstep has developed significant capabilities and expertise in the production of automotive and aerospace grade, advanced composite components, using both conventional autoclave‐based manufacturing and leading out‐of‐autoclave production technologies (developed in‐house and patented).

David Marino - Managing Director Ashley Rambukwella / Robert Williams

Quickstep Holdings Limited Financial & Corporate Relations

Telephone: +61‐2 9774 0300 Telephone: +61 2 8264 1004 / 0407 231 282 or +61 2 8264 1003 / 0468 999 369

E: dmarino@quickstep.com.au E: a.rambukwella@fcr.com.au or r.williams@fcr.com.au

or:

Visit www.quickstep.com.au

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