Update on Defence Contract with NP Aerospace

Further to the Company's previous announcements notifying of delays in the defence contract progress, and in line with well documented government defence procurement reviews. Image Scan today announces that it has been notified by NP Aerospace Limited ("NP Aerospace"), a prominent UK defence contractor, that the large military customer has exercised its contractual right to terminate, for convenience, the prime contract under which Image Scan was contracted to supply its ThreatScan® portable X‑ray systems.

The Company has been informed by NP Aerospace that the customer has issued a formal notice terminating the prime contract under its "termination for convenience" provisions. The termination is not performance‑related and does not arise from any alleged failure by NP Aerospace or Image Scan to meet their contractual obligations. Negotiations have yet to commence regarding alternative options to the termination for convenience notice received.

As previously disclosed, the NP Aerospace contract represented a programme over a 36‑month period and was expected to contribute materially to FY27 and FY28 revenues.

As reported in the Company's results for the year ended 30 September 2025, Image Scan entered FY26 with a strong order book of £4.67 million and a year‑end cash balance of £1.13 million, the order book after the removal of this large contract stands at over £1 million and our cash position is £1 million.

While the termination of this contract is disappointing, particularly given the significant effort invested by Image Scan to secure and support the programme, the Board believes that the remaining order book and cash position provide a good platform from which to manage the impact of this decision and continue to execute the Group's broader strategy.

CEO Comment

Vincent Deery, Chief Executive Officer of Image Scan, commented:

"We are extremely disappointed that this defence programme has been terminated for convenience by the end‑customer, particularly given the strength of our collaboration with NP Aerospace and the quality of our ThreatScan® systems.

However, it is important to stress that this decision is not performance‑related and does not reflect on the capability of our technology or the work of our team.

With a robust order book, a strong cash position and a differentiated product portfolio, we remain confident in Image Scan's ability to deliver long‑term value to our shareholders."

Image Scan Holdings plc Tel: +44 (0) 1509 817400

Vincent Deery CEO

Sarah Atwell-King, CFO & Company Secretary

Zeus - Nominated Advisor and Corporate Broker Tel: +44 (0)203 829 5000

Mike Coe/James Bavister (Investment Banking)