Frost & Sullivan Publishes Update Coverage Report on Brainsway Ltd.: The Company continues to generate consistent growth based on the rental model with sufficient cash available for 2018, without the need for further capital raising; target price unchanged.

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Summary of Highlights

In the first quarter of 2018, the Company reported the following major developments:

During the quarter, the company recorded revenues of $3.6 million, of which 58% stemmed from rental agreements for its devices and the remainder from sales of devices.

• Sales were similar to Q4-2017, however, compared to the corresponding quarter in 2017 revenues grew significantly. Revenues from rental agreements grew 45%, whilst revenues from sales grew 113%.
• The Company's operating loss decreased slightly to $1.4 million; Cash used for current operations also reduced to about $600,000 in the quarter.
• The company's available cash balance is $15.4 million, meaning that the company can complete its strategic plans without the need to raise additional capital in the coming year.

The company received FDA approval to market the company's system in the US with the new stimulator.

• On May 3, 2018, the company announced that it had received approval from the FDA for marketing in the US of the TMS Deep system with the new stimulator developed by the company
• The new stimulator is an upgrade of the company's system capabilities from several aspects, including: improved energy efficiency, user-friendly software, storage and retrieval of therapeutic information throughout the therapeutic program, and technical monitoring of the functioning of the system – e.g. the company will be able to verify payments required by the therapists for its systems. The company estimates that the new stimulator will be delivered to US customers in the coming months after completion of the beta site.

In view of all these considerations, we maintain our previous valuation of the company's value of $129.5 million / NIS 453 million; target price of NIS 26.3 – NIS 28.6, and on average NIS 27.5.

• On December 11, 2017, the Company entered into a private placement agreement with leading investment parties in Israel led by HaPhoenix.
• The significant capital raised by the Company strengthens its financial stability and enables it to continue supporting clinical development and regulatory submissions, whilst also expanding its presence in the US by recruiting marketing and sales personnel to further establish the rental model.

About the company - Brainsway Ltd. (Brainsway or "the Company") 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 click here (https://ww2.frost.com/research/equity-research/)

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Kristi Cekani 
Corporate Communications - Frost & Sullivan, Europe
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