Security Devices International Inc. (“SDI” or “the Company”) provides a corporate update.

“SDI’s focus on being recognized as the gold standard within the 40MM less-lethal munitions space continues to be priority one. By providing a safe, reliable and effective product line which ensures the success of our Law Enforcement partners as well as their critical mission to provide safer communities, we intend to create a lasting awareness that there is now a better alternative”. SDI’s President, Gregory Sullivan.

Sales Growth and Product Acceptance

The on-going adoption of the Company’s technology into various agencies remains consistent with its targeted sectors.

Recent Correctional Services (penitentiaries) sales encompass agencies in Regina, Saskatchewan, Grand Cache, Alberta, Saskatoon, Saskatchewan, Kingston, Ontario, and West Virginia, USA.

Purchasing Police Departments who have also been added to the fast-growing list of government agencies include; Portland, Oregon, Lompoc, California, Los Alamos, New Mexico, Toronto, Ontario, Montreal, Quebec and Hartford, Connecticut. SDI’s rounds were also purchased by a Federal agency in Alberta, Canada, a State Police agency in the mid-western United States as well as multiple Sheriff’s departments in California.

Overall revenue growth continues as SDI’s products gain wider industry acceptance and an expanded list of customers who have converted to SDI’s advanced technology in order to achieve greater safety and operational diversity.

SDI is also very pleased to announce that it has been accepted into a new sales segment within the less-lethal market sector, primarily University Public Safety / Police Departments. These key agencies are responsible for the safety and security of both students and the public within their jurisdiction. The Company has sold their munitions to one of the largest University Police Departments in the United States and sees this trend of increasing university campus security budgets continued throughout 2016.

Partnerships

SDI’s continued efforts with industry partners have greatly impacted the increase in sales and “build-out” of distribution channels globally.

A key licensing agreement with United Tactical System (UTS), as announced in April, 2015, allows SDI to work with an industry recognized brand, Pepperball, which is the flagship product of UTS. SDI and UTS continue to work closely in aligning their sales strategies to be highly beneficial to both Companies.

Operations

SDI continues to explore avenues of cost reduction in both the product manufacturing process and G & A costs. As the Company moves toward a more automated approach to manufacturing, the cost reductions will increase.

New Technology

To continue the recognition as an innovator within the less-lethal space, SDI has completed the development of it’s own “DNA” branded forensic marking liquid, through an industry leading third party supplier. This form of “DNA” liquid can be utilized in SDI’s 40MM less-lethal payload rounds and it is the first of its kind on the market in a 40MM projectile. The use of SDI’s “DNA” liquid marking round, in conjunction with police reporting procedures can be used to greatly increase conviction rates for Law Enforcement agencies in circumstances that warrant the use of such technology.

Media Relations

Due to the high level of public interest in making confrontations safer between the police and the public, the Company along with its innovative product line has recently been featured in over 800 media outlets worldwide including, Fox news, CNN money, The Boston Globe, Associated Press and Al Jazeera.

Corporate

The Company also states that an application has been approved by the Toronto Venture Exchange to extend the term of warrants issued by the Company on September 30, 2010 (the “Warrants”) at a price of $0.20 and January 4, 2012 at a price of $0.13. The Warrants were scheduled to expire on October 1, 2015, and January 3, 2016, but will now expire on September 23, 2019. All other terms of the Warrant will remain in effect.

The Company furthermore announces the issuance of 1,675,000 options under the SDI option plan to officers, directors, and consultants. These options have an expiry date of October 20, 2020 with an exercise price of $0.38.

This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of SDI in any jurisdiction.

Forward Looking Statement

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements including information with respect to the offering. Because of certain risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although SDI believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward- looking statements will prove to be correct. Except as required by law, SDI disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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