CORPORATE OVERVIEW

FORWARD-LOOKING STATEMENT

This presentation includes forward-looking statements that are

subject to many risks and uncertainties. These forward-looking

statements, such as statements about Optex’s short-term and

long-term growth strategies, can sometimes be identified by use

of terms such as “intend,” “expect,” “plan,” “estimate,” “future,”

“strive,” and similar words. These statements involve many risks

and uncertainties that may cause actual results to differ from

what may be expressed or implied in these statements. These

risks are discussed in Optex’s Securities and Exchange

Commission filings and reports, including the risks identified

under the section captioned “Risk Factors” in its Form 10-K.

Optex disclaims any obligation to update information contained

in these forward-looking statements whether as a result of new

information, future events, or otherwise. THIS PRESENTATION

DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES

OF OPTEX OR A SOLICTATION OF AN OFFER TO BUY

SECURITIES OF OPTEX.

2

Pitch

3

⦿ What we do/make

⦿ Sustainable competitive advantages

⦿ What the market opportunity is

⦿ Who are the competitors

⦿ Clearly articulated business strategy

⦿ Brief financial overview

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ABRAMS SUPPORT – What we do…

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BRADLEY SUPPORT – What we do…

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STRYKER – LAV SUPPORT – What we do…

OPTEX PRODUCTS – What we do…

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M Series

ICWS

Laser & Non-Laser Protected

Acrylic & Glass Periscopes

Periscopes

CSS, MRS

Big Eye, etc.

Digital Day and Night (DDAN)

Muzzle Reference Systems (MRS)

Ships Binoculars, Collimators, etc.

Sighting Systems

Optical Cells, Eyepiece, Objective Lens Sets

Optically aligned metal and glass lens sets

AOC (Applied Optics Center)

Components

Misc. Repair

parts

Howitzer

Other

Laser Interference Filters,

ENVG Filters, Optical Coatings

OPTEX PRODUCTS –What we do…

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DDAN / M36 Sights M17 Day/Thermal Periscope

Back Up Sight

Howitzer Products

Laser Protected Periscopes

Red Tail – Digital Spotting Scope

Commercial Optical Assembly

Naval Binoculars

Sustainable Competitive Advantages…

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⦿ Building Patented and Proprietary Niche Products for over 30 Years

• Designed in Protection through Patents and Manufacturing Process Knowledge

⦿ Vertical Integration (Machining, Coating, Assembly of Optical Parts)

• Multiple Barriers to Entry

⦿ Highest Share in our US Market for Major Product Lines

• Excellent Economy of Scale through Suppliers and Factor Hours

⦿ Expanding Market (Europe and Middle East) through ITAR Registration

• ITAR Gets you to the Table

⦿ Approved Supplier to: General Dynamics, BAE Systems, L3T/Harris, US DoD

⦿ Growing Revenue, Increasing Margins, Increasing Earnings (Scale)

⦿ Clean Capitalization Table and Healthy Balance Sheet (Robust)

⦿ Minimal CapEx needs

⦿ CEO/CFO own 11.4% of Outstanding Shares

Market Share, Customers, and Competitors

Periscopes & Vision Blocks Markets

UK

Germany

South

Korea

Israel

75%US

20-30%Worldwide

Worldwide

$40-50MM

UK

Norway

Belgium

5%US

0.5-1%Worldwide

US

$10-20MM

Worldwide

$500MM-$1B

Sighting Systems Markets

UK

US

$100MM

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MHI

Optex Business Strategy

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Optex has established core competencies by proving its product reliability and

product quality and by maintaining deep product and sector knowledge in an

overall supply chain control environment

⦿Optical Engineering

⦿Mechanical Sighting Systems

⦿Assembly Processes

PRODUCTS

⦿New Periscope Technology

Enhancement

⦿New Sighting Systems

Product Development

⦿Commercial Markets

⦿Foreign military Sales Expansion

Market Development

⦿Opportunistic Commercial and

Military Product Development

Diversification

MA

RK

ET

S

Market Retention

PRESENT NEW

PR

ES

EN

TN

EW

Financials - Growing Revenue, Growing Margins

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*2019F – Annualized 1st Quarter 2019 Performance

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0

5

10

15

20

25

2014 2015 2016 2017 2018 2019F

Revenue vs. Gross Margin

1st Half Revenue 2nd Half Revenue

Gross Margin Linear (Gross Margin)

Gro

ss M

argi

n

Re

ven

ue

in M

illio

ns

Financials -Valuation

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Growing Revenues with Increasing Gross Margins are generating significant

Free Cash Flows with no Debt and little need for CapEx.

With Warrants

Exercised before

Maturity

With Warrants

Exercised at Maturity

(cashless)

Stock Price (5/6/2019) 2.00$ 2.00$

Shares Outstanding (MM) 8.4 8.4

Warrants at $1.50 (MM) 4.2 1.05

Total Potential Shares (MM) 12.6 9.45

Equity Capitalization (MM) 25.20$ 18.90$

Cash (12/31/18) (MM) 1.10$ 1.10$

Warrant Proceeds (MM) 6.30$ -$

Debt (12/31/18) (MM) 0.50$ 0.50$

Enterprise Value (MM) 18.30$ 18.30$

EV/LTM Revenue .88x .88x

Adjusted EBITDA 2018 (MM) 2.00$ 2.00$

EV/LTM Adj. EBITDA 9.2x 9.2x

Adjusted EBITDA Q119 (MM) 0.83$ 0.83$

Financials – Operating Income vs. Net Income

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Six months ended

March 31, 2020

Revenue $ 12,979

Cost of Sales 9,556

Gross Margin 3,423

General and Administrative Expense 1,542

Operating Income 1,881

Gain (Loss) on Change in Fair Value of Warrants (547)Total Other Income (547)

Other Expenses

Interest Expense (12)

Other Income (Expense) (559)

Income (Loss) Before Taxes 1,322

Current Income Tax Expense (Benefit) 270

Net income (loss) $ 1,052

Optex Systems Holdings, Inc.

“This is a non cash value

representing the change in

estimated warrant liabilities

for outstanding warrants

which is driven by fluctuations

in the stock volatility rates,

market share prices, interest

rates, future dividends and

term of the outstanding

warrants. The liability would

only apply in the event of a

fundamental change of the

entity such as: amendment of

the articles of incorporation,

mergers and share exchanges,

transfers of corporate assets,

entity dissolution.”

Summary

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• $1 Billion worldwide

• Increasing market share

(commercial and foreign)

• Highest quality

• Innovative product

development

• New product launches

• Identify targets’ critical

capabilities and synergies

• Seek vertical integration and

operational bench strength

• Attractive purchase price

• International foothold

• Major defense customers

• Top commercial customers

• Government & Primes

Market Opportunity

Proven Acquisition

Strategy

Product Portfolio Customer Base

Contact: IR@optexsys.com 1-972-764-5718

BUSINESS DIVISIONS OVERVIEW – backup data

OPTEX SYSTEMS HOLDINGS, INC.

⦿ Laser Protected Periscopes and Vision Blocks

⦿ Military Optical Sighting Systems

⦿ Weapon Systems, Optical Subassemblies

⦿ High Definition Imaging Systems

⦿ Thermal and Night Vision Systems

⦿ Premier Thin Film Coatings

• Blocks Unwanted Wavelengths

• Eliminates Unwanted Reflections

• Protects Sensors and Optics

⦿ Precision Optical Assembly Processes

⦿ Stabilized Monoculars and Binoculars

(Military & Commercial)

OPTEX SYSTEMS

~60% of Revenue

APPLIED OPTICS CENTER

~40% of Revenue

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SELECT MAJOR CUSTOMERS

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DEFENSE CUSTOMERS COMMERCIAL CUSTOMERS

24%

8%

68%

2017 REVENUE = $18.5M

Commercial Foreign Other

17%

18%

65%

2016 REVENUE = $17M

Commercial Foreign Other

14%

20%

66%

2015 REVENUE = $13M

Commercial Foreign Other

SALES MIX SHIFTS – GROWING COMMERCIAL & FOREIGN MILITARY SALES

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Growing Commercial and Foreign Sales are

Helping to Diversify the Sales Mix.

2%

24%

74%

2014 REVENUE = $10M

Commercial Foreign Other

2018 Revenue = $20.8M

Commercial 24%

Foreign 18%

Other 58%

On 5/26/2015, Optex entered

into an exclusive supply

agreement with Nightforce

Optics for supply of critical

optical assemblies

• $2.7 MM in 2016

• $4.1 MM in 2017

• $4.3 MM in 2018

MARKET DEVELOPMENTNEW COMMERCIAL OPPORTUNITIES

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4 12 assemblies in

production now

18 16 new

assemblies in roadmap

LEADERSHIP TEAM

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Danny Schoening – CEO

30 years in Engineering, Manufacturing, Optics, and

Business Leadership; holds 3 US Patents. Previously

with Honeywell International (HON) and Finisar

Corporation (FNSR).

Karen Hawkins – CFO

27 years in Defense and Transportation. Previously

with General Dynamics (GD).

Joe Aizpuru – Engineering Manager

30 years in Engineering/Optics. Holds 11 US Patents.

Previously with Honeywell International (HON) and

Finisar Corporation (FNSR).

Justin White – Materials Manager

15 years in Materials and Supply Chain Management.

Previously with Raytheon (RTN), Northrop

Grumman (NOC), former US Navy.

Jeff Balch – Quality Manager

30 years in Optical Assembly and Optex Experience

Angelina Kerr – Contracts and ITAR

Compliance Manager

20 years in Project Management and Contracts

Support

Bill Bates – General Manager –AOC

Division

34 years in Optics and Military and Commercial

Contracting. Previously with L-3 Communications

(LLL).

Ron Stinedurf – Manufacturing Manager

37 years in Optical Fabrication and Manufacturing

Al Gibson – Senior Thin Film Coating

Engineer

35 years in Thin Film Coatings with a background in

Aerospace Engineering