CybAero proposes a resolution for a preferential share issue of approx. SEK 128 million and obtains a short term loan financing of SEK 20 million

The Board of CybAero AB (”CybAero” or the ”Company”) has resolved on 14
September 2016 to propose an extraordinary meeting with the shareholders to
resolve upon a share issue with preferential rights for the shareholders of
approx. SEK 128 million. The share issue is guaranteed up to approx. SEK 115
million through subscription and guarantee undertakings corresponding to approx.
90 per cent of the total amount of the share issue. In order to provide CybAero
with working capital for the period until receipt of the subscription amount,
the Company has obtained a short term loan financing of SEK 20 million.
Background and motive in brief

CybAero has taken extensive measures to reduce costs and has restructured the
sales and marketing departments in order to support the growth target.
Accomplished measures combined with the present share issue of approx. SEK 128
million, aiming to increase the financial flexibility, and future cash flow
generated by the business, including expected payment from the three helicopter
system which have been delivered to the customer Jolly, is expected to
strengthen the Company’s balance sheet and reduce the net debt.

After extensive factory tests and further development of the Company’s
helicopter platform, the three helicopter systems have in August been delivered
to Jolly, with the Chinese customs as the end customer. CybAero is first in the
world to launch this kind of system and the Company now enters into a
commercialization phase. The cooperation with Albright Stonebridge Group, which
started in December 2015, has resulted in several important meetings with
decision makers during 2016 and the Company is of the opinion that the
cooperation will contribute to the Company’s growth already during 2017.

The new share issue will provide CybAero approx. SEK 128 million, before costs
for the share issue. From the issue amount will be deducted costs for the share
issue of approx. SEK 16 million (including remuneration for underwriting
commitments of approx. SEK 9 million). The Company will use the net proceeds
from the share issue of approx. SEK 112 million primarily to strengthen its
balance sheet through repayment of loans of approx. SEK 54 million, including
the short term financing of SEK 20 million obtained in September 2016, in order
to provide the Company with working capital until the net proceeds from the
share issue has been received, and to increase the financial flexibility to
support the growth target, but also to create a financial preparedness to handle
periods with fluctuations when the order flow could be influenced by long
decision-making processes and lead times.

Conditions in brief

Shareholders will receive one (1) subscription right for each share owned on the
record date 12 October 2016. One (1) subscription right entitles to subscription
for one (1) new share. The company’s share capital may be increased with not
more than SEK 47 992 228 kronor 50 öre [1] and the number of shares issued will
not exceed 31 994 819[1] shares. The subscription price is SEK 4.0.

[1] If the 69 066 new shares in the company, which have been subscribed for
through the use of outstanding warrants, will be registered by the Companies
Register and in the share register kept by Euroclear Sweden AB before the record
date for the share issue, the share issue decision shall be deemed to include
that the company’s share capital may be further increased by not more than SEK
103 599 through a share issue of not more than 69 066 shares.

Shares may also be subscribed for without the support from subscription rights.
Shares subscribed for without support from subscription rights shall primarily
be distributed to those who have subscribed for shares with support from
subscription rights, irrespective of if they were shareholders on the record
date or not, in proportion to the number of used subscription rights, and
secondly to those who have subscribed for shares without support from
subscription rights, irrespective of if they were shareholders on the record
date or not, in proportion to the number of shares subscribed for during the
normal subscription period; and if that is not possible, by the drawing of lots,
and thirdly to those who subscribed for shares during any extended subscription
period, irrespective of if they were shareholders on the record date or not, in
proportion to the number of shares subscribed for during such extended
subscription period; and if that is not possible, by the drawing of lots, and
finally to those guarantors who have guaranteed subscription and payment of
those shares which have not been distributed to any other subscriber, in
relation to the guaranteed amount.

The record date for establishing which shareholders shall be entitled to receive
subscription rights is 12 October 2016. The shares will be traded with right to
participate in the share issue up until 10 October 2016. Subscription shall take
place during the subscription period from and including 19 October 2016 up until
4 November 2016 or such later date that the Board may decide. Trade in
subscription rights is supposed to take place from and including 19 October 2016
up until 2 November. Trade in paid subscribed shares will take place from and
including 19 October 2016.

Shareholders who choose not to participate in the new share issue will have
their ownership in the Company diluted by 50 per cent, but may compensate
themselves financially by selling their subscription rights.

The share issue presupposes a decision by an extraordinary meeting with the
shareholders which will be held on 4 October 2016. Notice to the meeting will be
subject to a separate press release.

Subscription – and underwriting commitments

CybAero has received commitments to subscribe for shares in the share issue from
a number of major shareholders, including Rambas AB, of approx. SEK 4 million,
corresponding to 3 per cent of the share issue. The Company has further entered
into agreements for underwriting commitments of approx. 111 million,
corresponding to 97 per cent of the share issue. Altogether the share issue is
guaranteed up to an amount of SEK 115 million, corresponding to 90 per cent of
the amount of the share issue

Indicative timetable for the rights issue

4 October 2016:                  Extraordinary meeting with the shareholders to
resolve upon the Board’s proposal of a new share issue.

10 October 2016:                The last trading day for the share with right to
participate in the new share issue.

11 October 2016:                 The first trading day without right to
participate in the new share issue.

About 11

October 2016:                       Announcement of prospectus.

12 October 2016:                 Record date, i.e. shareholders who are
registered in the share register that day will receive subscription rights
entitling to participation in the new share issue.

19 October –

2 November 2016:                Trade with subscription rights on Nasdaq First
North.

19 October –

4 November 2016:                Subscription period.

About 9

November 2016:                   Announcement of result.

Advisors

Financial advisors to CybAero in connection with the share issue are Erik Penser
Bank and Redeye AB. Legal advisor to the Company is Advokatfirman Delphi.

For more information, please contact:
Emmelie Axelsson, Marketing Coordinator, CybAero AB, phone: +46 (0)13-465 29 30
email: emmelie.axelsson@cybaero.se

This information is information that CybAero AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 08:30
CET on September 14 2016.

Important Notice

The information in this press release does not contain or constitute an offer to
acquire, subscribe or otherwise trade in shares, subscription rights or other
securities in CybAero AB (publ). Any invitation to the persons concerned to
subscribe for shares in CybAero AB (publ) will only be made through the
prospectus that CybAero AB (publ) estimates to publish on or around October 11,
2016.

This press release may not be released, published or distributed, directly or
indirectly, in or into Australia, Japan, Canada, the United States or any other
jurisdiction where participation would require additional prospectuses,
registration or measures besides those required by Swedish, Finnish, Danish, UK
and Irish law.

Nor may this press release be distributed in or into such countries or any other
country or jurisdiction in which distribution requires such measures or
otherwise would be in conflict with applicable regulations. Any failure to
comply with the restrictions described may result in a violation of applicable
securities regulations.

No subscription rights, paid subscribed shares or shares in CybAero have been or
will not be registered under the United States Securities Act of 1933, as
amended (the “Securities Act”) or the securities legislation of any state or
other jurisdiction in the United States and no subscription rights, paid
subscribed shares or shares may be offered, subscribed for, sold, resold,
delivered or otherwise transferred, directly or indirectly, in or into the
United States except under an available exemption from, or transaction not
subject to, the registration requirements under the Securities Act and in
compliance with the securities legislation in the relevant state or any other
jurisdiction of the United States.

There is no intention to register any securities referred to herein in the
United States or to make a public offering of the securities in the United
States. This press release contains certain forward-looking information that
reflects CybAero’s present view of future events as well as financial and
operational development. Words such as “intend”, “assess”, “expect”, “may”,
“plan”, “believe”, “estimate” and other expressions entailing indications or
predictions of future development or trends, not based on historical facts,
constitute forward-looking information. Forward-looking information is
inherently associated with both known and unknown risks and uncertainties as it
depends on future events and circumstances. Forward-looking information is not a
guarantee of future results or development and actual outcomes may differ
materially from the statements set forth in the forward-looking information.
About CybAero
CybAero develops and manufactures Remotely Piloted Aircraft Systems (RPAS) for
safer and more effective aerial operations in various environments, including
those hazardous in nature. The company has made a great international impact
with its APID One helicopter, which can be adapted for both military and
civilian applications such as coastal and border surveillance, search and rescue
missions, and mapping. CybAero’s head office is located in the Mjärdevi Science
Park in Linköping, Sweden. The company has around 50 employees and has been
listed on the Nasdaq First North since 2007. FNCA Sweden AB is the company's
certified adviser.