ScanTech AI Systems Secures TIPS Contract, Unlocking $100M Market Opportunity

ScanTech AI Systems Enters Strategic Partnership

ScanTech AI Systems Inc. (NASDAQ: STAI), a pioneer in advanced security screening technologies, has entered into a significant procurement contract with Creeksource Consulting LLC. This partnership enables ScanTech AI to offer its cutting-edge screening technologies through The Interlocal Purchasing System (TIPS), a nationally recognized cooperative purchasing platform 1

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Expanding Market Access

The collaboration with Creeksource Consulting, an approved TIPS vendor, opens up an estimated $100 million addressable market for ScanTech AI. This substantial opportunity stems from the vast network of government facilities across the United States, including:

• Over 3,000 county courthouses
• Approximately 13,000 municipal courthouses
• Thousands of additional municipal facilities classified as critical infrastructure 2

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Streamlined Procurement Process

The TIPS contract provides a trusted and efficient pathway for government clients to access ScanTech AI's advanced screening technologies. This arrangement is designed to:

1. Minimize administrative burden
2. Ensure alignment with public sector procurement standards
3. Accelerate the deployment of smart screening systems across government-operated facilities nationwide

Dolan Falconer, Chief Executive Officer of ScanTech AI, emphasized the importance of this development, stating, "TIPS provides a trusted and efficient pathway for government clients to access advanced screening technologies. Through our partnership with Creeksource Consulting, we aim to expand market access and make it easier for agencies to deploy our solutions quickly and compliantly" 2

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ScanTech AI's Innovative Technology

At the core of ScanTech AI's offering is its state-of-the-art 'fixed-gantry' CT screening technology. This system leverages proprietary artificial intelligence and machine learning capabilities to:

• Accurately and quickly detect hazardous materials and contraband
• Automatically locate, discriminate, and identify threat materials and items of interest

These advanced scanners are designed for use in various high-security environments, including airports, seaports, borders, embassies, corporate headquarters, and other facilities where security is a top priority 2

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Market Impact and Future Prospects

The announcement of this strategic partnership has had a significant impact on ScanTech AI's market performance. On the day of the announcement, ScanTech shares experienced a remarkable surge, trading up 87.6% at $1.25 1

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As ScanTech AI positions itself to capitalize on this expanded market access, the company aims to scale its deployments efficiently. The streamlined procurement process enabled by the TIPS contract is expected to accelerate the adoption of ScanTech AI's smart screening systems across a wide range of government-operated facilities, potentially transforming the landscape of public sector security infrastructure 2

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