Rail Vision Ltd. (NASDAQ: RVSN) Strengthens Innovation Roadmap with Completion of Quantum Transportation Transaction

• Rail Vision confirmed the completion of its previously announced transaction to acquire a 51% ownership interest in Quantum Transportation.
• The company noted that Quantum Transportation’s intellectual property adds a new dimension to the company’s portfolio.
• RVSN’s core technology has attracted attention and adoption beyond R&D demonstrations.

Improving railway safety and operational efficiency remains a critical priority as global rail networks face increasing traffic, aging infrastructure and heightened safety expectations. With this priority in mind, Rail Vision (NASDAQ: RVSN) recently announced that it has successfully completed a strategic acquisition that expands its technological capabilities and long-term innovation potential. Rail Vision is an early commercialization-stage technology company developing unique rail-specific detection systems designed to improve safety and operational performance across global railway networks through advanced sensing, artificial intelligence, and data-driven analytics.

Rail Vision confirmed the completion of its previously announced transaction to acquire a 51% ownership interest in Quantum Transportation, which holds an exclusive sublicense to advanced quantum error correction technologies relevant to transportation and rail applications. In connection with the acquisition, Rail Vision issued 2,982,710 ordinary shares, representing approximately 4.99% of its outstanding share capital as of the date of signing the acquisition agreement and prior to issuance, to former Quantum Transportation shareholders in exchange for 55,249 of Quantum Transportation’s ordinary shares, representing a 51% ownership of Quantum Transportation. This share issuance secured majority control of the quantum-focused entity, which is now a majority-owned subsidiary of Rail Vision.

Alongside the share exchange, Rail Vision extended a convertible loan facility of up to $700,000 to support Quantum Transportation’s operations and development, with the loan bearing an annual interest rate of 8% and disbursed in tranches according to development needs and agreed terms. The acquisition supports Rail Vision’s long-term strategic goal of exploring the integration of quantum-AI intellectual property with its existing rail-safety technologies, with the potential over time to create technological synergies that may enhance product capabilities, accelerate innovation and support long-term value for both stakeholders and customers.

Rail Vision noted that Quantum Transportation holds an exclusive sublicense for rail technologies and platforms under an innovative pending quantum error correction patent application originally owned by Ramot, the technology transfer company of Tel Aviv University, adding a new dimension to the company’s intellectual property portfolio. Quantum error correction is a foundational discipline in quantum computing, enabling more reliable and scalable quantum systems by mitigating the impacts of noise and errors that quantum bits (qubits) experience during computation. This addition of quantum-based capabilities aligns with broader industry trends toward integrating advanced computing methods with real-time data analysis and decision support systems in complex operational environments like railways.

This transaction positions Rail Vision to leverage Quantum Transportation’s expertise in areas such as quantum-AI computing research and error correction algorithms, which could have application beyond rail safety into other high-value segments of transportation technology.

Rail Vision has built its reputation in the global rail industry with advanced sensor-based detection platforms that combine electro-optical imaging, thermal cameras and machine learning algorithms to detect and classify obstacles and other operational risks on and around rail tracks in real time. The company’s MainLine system is engineered to provide long-distance situational awareness of up to two kilometers ahead of a moving locomotive, even under challenging visibility or weather conditions. In parallel, the company’s ShuntingYard solution is optimized for short-range detection and for operational use cases in rail yards, depots and shunting areas together. These capabilities deliver real-time visual alerts to operators and support improved situational awareness, contributing to reduced collision risk and enhanced operational efficiency through proactive monitoring and data-driven insights.

Rail Vision’s core technology has attracted attention and adoption beyond R&D demonstrations. For example, the company’s MainLine systems were deployed by national rail operators following successful evaluations, showcasing its ability to deliver real-world improvements in hazard detection, operational safety and maintenance planning. These systems enable early warning and response strategies that reduce unplanned downtime and support more reliable scheduling, key factors for rail operators managing extensive passenger and freight networks.

The company’s efforts in protecting and monetizing its intellectual property portfolio have also progressed alongside its early commercial activities. Rail Vision received a patent from the European Patent Office for an AI-based railway collision avoidance system that uses electro-optical imaging and deep learning techniques to identify hazards ahead of moving trains. This patent builds on earlier protection secured in jurisdictions including the United States, Japan and India, strengthening its competitive position in the rail technology sector.

Rail Vision’s historical trajectory highlights its transition from a development-stage company to a technology provider with commercial deployments, growing intellectual property portfolio, and now strategic diversification into advanced computing areas through the Quantum Transportation acquisition. The company focuses on combining robust hardware with sophisticated AI software, enabling real-time scene interpretation and automated alerting capabilities that support both safety and predictive maintenance. As these technologies evolve, the integration of next-generation computing methodologies has the potential to support more advanced functionalities, including improved predictive modeling and decision support for autonomous rail operations.

The completed strategic acquisition marks an important milestone for Rail Vision as it seeks to broaden its technological base and expand potential applications in transportation and safety. By aligning quantum-AI research with its established rail safety systems, the company is positioning itself at the intersection of data science, advanced analytics, and practical safety solutions that address complex challenges faced by rail operators worldwide.

For more information, visit www.RailVision.io.

NOTE TO INVESTORS: The latest news and updates relating to RVSN are available in the company’s newsroom at http://nnw.fm/RVSN

Paid Promotional Disclosure

This press release constitutes a paid promotional communication. Rail Vision has engaged a third-party service provider to provide investor awareness and promotional services, including the dissemination of this press release, and has paid a fee for such services. Rail Vision exercises editorial control over the content of this press release but does not control how, when, or to whom the information is distributed by such third party.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Rail Vision. Investing in Rail Vision’s securities involves significant risks, and readers are encouraged to review Rail Vision’s filings with the U.S. Securities and Exchange Commission available at www.sec.gov before making any investment decision.

About Rail Vision Ltd.

Rail Vision is a development stage technology company that is seeking to revolutionize railway safety and the data-related market. The company has developed cutting edge, artificial intelligence based, industry-leading technology specifically designed for railways. The company has developed its railway detection and systems to save lives, increase efficiency, and dramatically reduce expenses for the railway operators. Rail Vision believes that its technology will significantly increase railway safety around the world, while creating significant benefits and adding value to everyone who relies on the train ecosystem: from passengers using trains for transportation to companies that use railways to deliver goods and services. In addition, the company believes that its technology has the potential to advance the revolutionary concept of autonomous trains into a practical reality. For more information, please visit https://www.railvision.io/.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Such expectations, beliefs and projections are expressed in good faith. For example, forward-looking statements in this press release include how the acquisition of Quantum Transportation positions Rail Vision to leverage Quantum Transportation’s expertise in areas such as quantum-AI computing research and error correction algorithms, which could have application beyond rail safety into other high-value segments of transportation technology, Rail Vision’s transition to a technology provider with commercial deployments, how the integration of next-generation computing methodologies have the potential to support more advanced functionalities, including improved predictive modeling and decision support for autonomous rail operations, how Rail Vision seeks to broaden its technological base and expand potential applications in transportation and safety and how the integration of next-generation computing methodologies have the potential to support more advanced functionalities, including improved predictive modeling and decision support for autonomous rail operations. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F filed with the SEC on March 31, 2025. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Rail Vision is not responsible for the contents of third-party websites.

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