CybAero : Newsletter #1 – 2016

Welcome to CybAero's first newsletter! Our aim is to keep you informed of non-share price sensitive news from the company.

A lot has been happening at CybAero recently. For example, we have a new CEO, a new CFO and a new head of Marketing and Communication.

New plans for the company to reach its goals have been launched and we have a revised communication plan to communicate more openly than before.

We will follow stock market regulations regarding share price sensitive information. This type of information will always communicated via press releases. Under the new rules effective from July 3, we have to communicate this information as soon as we have it. For this reason, press releases can be published at any time of the day.

Newsletters will be published at least once every quarter, or sooner when we have new information to share with you.

In this newsletter, the main topic is an insight into the work of the marketing and communications department. In the next newsletter we will profile another department within CybAero

A summary from CEO Rolf Schytt
My focus after I took over the role of CEO has been the delivery of the Jolly systems to the Chinese customs.

After the last half-year results we can see that the company must become more lean. The organization has grown rapidly, now some areas need to be reduced, but at the same time we also see a requirement for specific special skill sets.

Work on operational and quality issues has intensified and we are already seeing improvements. We have expanded test operations with ground rigs and flight tests. The service operation will be launched and the first tasks will be carried out during 2016. This is earlier than previously expected.

We have expanded cooperation with ASG (Albright Stonebridge Group). ASG is active in over 200 countries and has the right background to support us in the kind of business we are looking for.

The new sales strategy has already had a positive effect on the number of submitted quotes that show great potential. In the next few weeks we will market and promote the business as part of the share issue process. This started yesterday with successful results in Stockholm, and continued on Thursday in Gothenburg. The event in Gothenburg was broadcasted live and can be viewed at (only in Swedish): http://beta.redeye.se/member/dashboard/506561/livestream-redeye-investor-forum-goteborg-20-oktober

Marketing and communication department
In the marketing and communications department, we have concentrated on revising our communications plan and preparing the prospectus for the share issue.

We plan to participate in a number of future trade fairs and events. This will include creating material for the Roadshows which will take place during October, and the investor meetings arranged by Erik Penser and Redeye as well as an event by Feminvest.

CybAero will participate at the IFS World Conference in Gothenburg in October. IFS has an 'Innovation Area' at the event where they will discuss the general utility of unmanned systems. IFS will use our APID One Ranger helicopter on static display at the conference. CybAero will have a representative present to provide information about our product and company. Read more about the event at IFS at: http://www.ifsworld.com/corp/news-and-events/events/world-conference-2016/

We will also participate in AidEx in Brussels in November. This is a trade fair that focuses on humanitarian efforts and is something that we are very interested in participating in.

Read more about AidEx at: http://www.aid-expo.com/aidex-brussels/visit/about-us

We have a product that people are interested in, and would like to work with in different ways. An example is the Secure our Oceans project. See more information at: http://secureoceans.org/tech/apid_one_ranger.

Another interested party is TrakkaSystems (former SweSystem) who are our main camera supplier. They loaned an APID One Rescue mockup for the HAI Heli-Expo in the Spring, and we are in discussion with them about similar cooperation in the future.

We have also had visits from a number of newspapers to interview Rolf Schytt, our CEO. We will come back with more information as the articles are published. CybAero will also appear in a new commercial for the Linköping municipality that will be launched shortly.

Flight department
One of our flight team flew to China as the Jolly systems passed through customs at Stockholm to be present when the systems arrive in China. This is to prepare for the remaining FAT (Factory Acceptance Test). On October 23, two teams will go to China to inspect and verify the Jolly systems and then perform the FAT with the end customer.

Jolly
The three Jolly systems left Linkoping on August 31 and were sent to Stockholm where they were held by the Swedish customs authority for 25 days. This was because they are considered dangerous goods. The systems were then shipped from Sweden to China by air. In China, they arrived in the middle of China's 'Golden Week', a national holiday when very few people are working. This meant that the systems were held in Chinese customs for another two weeks before they were released to Jolly.

When the FAT is approved, we will receive payment for the Jolly systems. Unfortunately, the FAT tests cannot be performed in Sweden.

ACC AVIC
ACC AVIC have had a Chinese project manager on-site in Linköping for approximately two weeks during October. After the Jolly system deliveries, ACC AVIC is our main focus as it represents significant business.
Agents
Our agents work hard for us in many countries. In our next newsletter we will give more information about them and the work they do.

Each newsletter will end with a CybAero employee profile to give you an insight into the different roles in the company. In this issue we profile Emmelie Axelsson.

Position: Marketing and Communications Manager
Born: 1981
Background: Experienced in the aviation industry, including two years in the UAV industry in the United States. Emmelie studied art and design at the University of San Francisco, CA, United States.

When I began with the company in 2014, I started to write and animate the production documents and other images, see an example below. [Attachment]

It was exciting and fun, but above all instructive because I learned about the helicopter right down to nut and bolt level. I am ambitious, and I soon realized that my true vocation was within marketing. Today I am the marketing and communications manager. A role that I really love! I am responsible for how CybAero is viewed in the media, through profiling and the market. I participate in exhibitions, forums and hold company presentations etc.

I am also responsible for demonstrations to potential customers/visitors who want to see our product. In this context, I am responsible for logistics, coordination with our operational departments and ensuring that everything runs smoothly and satisfactorily. In my position, I receive many emails and phone calls from shareholders and others who have questions about the company. In addition to this I design and publish all printed material in the form of brochures, reports, prospectus, press releases etc.

Emmelie's view of her role as Marketing and Communications manager

I absolutely love my job here at CybAero, I learn new things and I grow as a person, which is important to me. We work in a competitive industry and are constantly being monitored by the market and our competitors. We have to be especially careful when we have visits from international customers. A conversation overheard in public can provide information to competitors and have an impact on our business. Some phone calls and non-constructive emails I get can be very trying, but mostly my work is wide, varied and very satisfying. I believe in the company, our new management and our products and look forward to an exciting future with CybAero.

What do I do in my spare time?

I train with the triathlon club here in Linkoping, mostly I do swimming and running. I like to draw and design in my spare time. I find that it's very relaxing. Otherwise, I spend my time with my family and friends.

[Attachment]

For more information, please contact:
Emmelie Axelsson, Marketing and Communications manager, CybAero AB, tel 013-465 29 30

E-mail: emmelie.axelsson@cybaero.se