September 11, 2017 (TSX-V:SDZ) (OTCBB:SDEV) – Press Release

SDI ANNOUNCES CORPORATE UPDATE

Security Devices International Inc. has appointed a new president and chief operating officer, detailed the winning of a national 40-millimetre tender with the RCMP, and made changes to its board of directors.

Security Devices has appointed Paul Jensen as the company’s new president and chief operating officer, effective Oct. 1, 2017.

Mr. Jensen is a seasoned, global executive with direct experience in developing high performance teams, managing complex projects, and building a global network of trusted advisers and business partners. His experiences have been focused on plastics contract manufacturing, the defence sector, technology licensing and managing intricate, multinational programs. Mr. Jensen has extensive business experience in the Middle East in both the public and private sectors of defence.

Mr. Jensen’s tenures include: co-founding Halo Maritime Defense Systems, an award-winning technology company offering the world’s most advanced marine automated security system with 13 patents and over $300-million in naval and defence opportunities; Nypro Inc., a billion-dollar plastics injection molding contract manufacturer, where Mr. Jensen held senior management positions for nearly two decades (directed a business unit with $150-million in sales); and positions with Kodak and GE, as well as the U.S. Army (nine years of active duty serving in command positions with the 82nd Airborne Division and XVIIIth Airborne Corps, leading up to Operation Urgent Fury, and on the staff and faculty of the U.S. Military Academy as an assistant professor of chemistry. Mr. Jensen was twice awarded the Meritorious Service Medal.

A distinguished graduate of the U.S. Military Academy at West Point (1977), Mr. Jensen received his MS in chemistry from MIT (1979 — Fannie and John Hertz Fellow) and holds an MBA with honours from Golden Gate University (1982). He is a graduate of the senior executive program at the University of Tennessee and has served on the adjunct faculty at the Fuqua School of Business, Duke University.

Mr. Jensen’s wealth of practical experience will assist the company well in the next phase of its global growth.

RCMP awards its request for standing offer tender for 150,000 40-millimetre less-lethal rounds to Security Devices’ technology partner which uses the security Devices’ collapsible-head projectile in the production of its 40-millimetre Def-Tec BIP (blunt impact projectile)

Security Devices is pleased to announce that the RCMP recently announced the awarding of its request for standing offer tender for its requirement of 40-millimetre less-lethal rounds. They selected the round submitted by Security Devices’ North American licensee, The Safariland Group. The winning round is produced using Security Devices’ patented collapsible-head technology, with the blunt impact projectile (BIP) married to Safariland’s proprietary propulsion system. It is marketed under the brand name Defense Technology BIP.

The RCMP tender specification called for a 40-millimetre round that featured a collapsible expandable gel-nose head with an expander piston arrangement that will absorb and disperse energy over a wider impact area. Only Security Devices’ patented collapsible-head projectile qualified.

The tender is for 150,000 rounds over a three-year period with an option for an additional 150,000 rounds over an additional two-year period. Security Devices began supplying the first rounds under its agreement with Safariland in August, 2017. Mr. Jensen stated, “This win validates the disruptive nature of the collapsible-head technology, and the company believes that this will be but the first of a number of government tenders that the BIP will win through its partnership with The Safariland Group.”

Security Devices shifts its focus to a licensing model as it looks to sign agreements with strong partners around the globe that have world-class manufacturing capabilities and large distribution networks

The RCMP award through Security Devices’ North American licensing partner validates the concept of combining Security Devices’ state-of-the-art technology with strong partners globally that have the distribution infrastructure and footprint to significantly grow Security Devices’ market penetration. The company is in talks with several other geographically strategic entities, to license its patented 40-millimetre technology. The licensing of the company’s intellectual property will be an important part of Security Devices’ strategy on a go-forward basis.

The shift in focus at Security Devices toward working with global technology partners that have established manufacturing capabilities and large in-place distribution networks will allow Security Devices to reduce its boots-on-the-ground retail effort that currently focuses on direct sales to local police departments and correctional facilities. This will permit Security Devices to reduce operating costs by more than 50 per cent from its 2017 run rate and will let Security Devices management focus its efforts on the signing of new technology partners and the development of its e-commerce efforts.

Changes to the Security Devices board

Bryan Ganz has been appointed executive chairman of the company from his current position as president. The company welcomes Mr. Ganz to his new position as executive chair and looks forward to continued growth.

Keith Morrison has resigned from the company’s board of directors as chairman. The company would like to thank Mr. Morrison for his guidance and support during his term on the board as chairman.

Karim Kanji has also resigned from the board of directors. Security Devices would like to thank Mr. Kanji for his contribution to the company and wishes him well in his future endeavours.

Share issuance to Northeast Industrial Partners

Security Devices reports that it has made a further share issuance to Northeast Industrial Partners under the consulting agreement announced on June 20, 2016, and extended as announced on June 16, 2017. Security Devices issued 498,423 common shares at a deemed price of 15.99 cents per share to satisfy the payment of $62,500 (U.S.) due in August, 2017. The shares are subject to a four-month hold period expiring on Dec. 26, 2017.

Northeast Industrial Partners is controlled by Mr. Ganz, who was the president and a director of Security Devices. Northeast Industrial Partners is a related party of Security Devices under Multilateral Instrument 61-101. Security Devices is exempt from the formal valuation requirement and shareholder approval requirement of MI 61-101 in connection with this issuance.

About Security Devices International Inc.

Security Devices is a technology company specializing in the areas of military, law enforcement, corrections and private security. The company develops and manufactures innovative, less-lethal equipment and munitions.

We seek Safe Harbor.