Nanox Announces First Quarter 2021 Results and Provides Business Update Announced FDA 510(k) clearance for the single source Nanox Cart X-Ray System Scaling up Company's semiconductor fabrication plant in South Korea End

Nanox Announces First Quarter 2021 Results and

Provides Business Update

Announced FDA 510(k) clearance for the single

source Nanox Cart X-Ray System

Scaling up Company's semiconductor fabrication

plant in South Korea

Ended Q1 with cash and cash equivalents of $219

Management to host conference call and webcast

today, May 11, at 8:30 AM ET

NEVE ILAN, Israel-May 11, 2021 -- NANO-X

IMAGING LTD (NASDAQ: NNOX) ("Nanox" or the "Company"), an innovative medical imaging technology

company, today announced results for the first quarter ended March 31, 2021 and provided a business update.

"We were very pleased in April to receive

FDA clearance for our single source Nanox Cart X-Ray System, a critical achievement for our company, and an important reference point

as we prepare to submit for approval of our multi-source device this year," stated Ran Poliakine, Chairman and Chief Executive Officer

of Nanox. "In addition, we are making solid progress, despite the impact of the pandemic, on the technology transfer of MEMs chip

technology to our interim clean-room facility in Korea and the construction of our new state-of-the-art fabrication facility."

Due to delays with the original third-party supplier of the second-generation

high-power ceramic tube, which were compounded by the COVID-19 pandemic, Nanox is currently working with two alternative tube suppliers

for the multi-source system.

As a result, while the Company does not expect

to meet its previously announced milestone of shipment of 1,000 multi-source Nanox units by the first quarter of 2022, the Company believes

that it will be able to gain ground during the year to reach the shipment milestone of 1,000 multi-source Nanox units during 2022, and

possibly more, if the multi-source Nanox.ARC is cleared by the FDA and authorized by other similar regulatory agencies.

Nanox continues to expect submission of a 510(k)

premarket notification to the FDA with respect to the multi-source Nanox.ARC and the Nanox.CLOUD during 2021 and deployment of an initial

wave of approximately 15,000 Nanox.ARC units by the end of 2024.

"While we have experienced delays, compounded

by the world pandemic, in the production of our second-generation high-power tube by a third-party manufacturer, which caused us to revisit

certain timelines associated with the shipment of multi-source units, we believe that the manufacture and shipment of at least 1,000 multi-source

systems will be accomplished in 2022," added Mr. Poliakine.

"We continue to believe that our novel digital

x-ray source incorporating our MEMs chip can be manufactured at a fraction of the cost of legacy analog x-ray source tubes. This, along

with our innovative Medical Screening as a Service (MSaaS) business model of working with healthcare providers, will allow us to achieve

our mission of democratizing medical imaging and making access to imaging more widely available to people who currently have limited or

no access or experience long wait times. We have a growing, highly qualified management team and a strong balance sheet, and are working

tirelessly toward this goal."

"Our vision is to provide a worldwide end-to-end

medical imaging solution, including remote services such as: image repository, radiologist matching, online and offline diagnostics review

and annotation, connectivity to medical imaging AI systems, and billing and reporting. This will enable us to offer a more comprehensive

and differentiated medical imaging solution to our customers," stated Mr. Poliakine.

First Quarter 2021 and Recent Developments:

results for three months ended March 31, 2021

For the three months ended March 31, 2021, the

Company reported a net loss of $12.7 million, compared to a net loss of $7.4 million for the three-month period ended March 31, 2020.

Research and Development expenses for the first

quarter 2021 were $2.7 million, as compared to $2.4 million for the corresponding prior year period in 2020. The slight increase was due

to higher development costs related to the Nanox System, including increased R&D headcount, and costs related to the ongoing regulatory

approval process, offset by a decrease in share-based compensation.

Marketing expenses for the first quarter 2021

were $1.7 million, as compared to $1.0 million for the corresponding prior year period in 2020. These expenses increased due to higher

investments in brand awareness and product marketing capabilities as well as share-based compensation.

General and administrative expenses for the first

quarter 2021 were $8.2 million, as compared to $4.0 million for corresponding prior year period in 2020. The increase in general and administrative

expenses in the first quarter of 2021 as compared to the corresponding prior period was due to secondary offering expenses and share-based

Net cash used in operating activities during the

first quarter 2021 was $4.4 million.

The Company ended the first quarter 2021 with

cash and cash equivalents of $219.3 million, including $13.6 million cash in transit which was paid soon after the quarter ended.

Non-GAAP net loss for the three months ended March

31, 2021 was $7.1 million, as compared to $2.6 million for the corresponding prior year period in 2020. Non-GAAP research and development

expenses for the first quarter of 2021 were $2.1 million, as compared to $689 thousand for the corresponding prior year period in 2020.

Non-GAAP marketing expenses for first quarter 2021 were $1.2 million, as compared to $651 thousand for the corresponding prior year period

in 2020. Non-GAAP general and administrative expenses for the first quarter 2021 were $3.7 million, as compared to $1.2 million for the

corresponding period year period in 2020.

A reconciliation between GAAP and non-GAAP metrics

for the three-month period ended March 31, 2021 and March 31, 2020 is provided in the financial results that are part of this press release.

The difference between the GAAP and non-GAAP results for each of the metrics above is mainly attributable to secondary offering expenses

and share-based compensation.

As of March 31, 2021, the Company had approximately

47.6 million shares outstanding.

Conference call and webcast details

Tuesday, May 11, 2021 @ 8:30am ET

Investor domestic dial-in: 877-407-0789

Investor international dial-in: 201-689-8562

Conference ID: 13718794

Webcast link: http://public.viavid.com/index.php?id=144411

Nanox, founded by the serial entrepreneur Ran

Poliakine, is an Israeli corporation that is developing a commercial-grade digital X-ray source designed to be used in real-world medical

imaging applications. Nanox believes that its novel technology could significantly reduce the costs of medical imaging systems and plans

to seek collaborations with world-leading healthcare organizations and companies to provide affordable, early detection imaging service

for all. For more information, please visit www.nanox.vision.

Forward-Looking Statements:

This press release may contain forward-looking

statements that are subject to risks and uncertainties. All statements contained in this press release that are not historical facts are

forward-looking statements and you can identify forward-looking statements by terminology such as "can," "might,"

"believe," "may," "estimate," "continue," "anticipate," "intend,"

"should," "plan," "should," "could," "expect," "predict," "potential,"

or the negative of these terms or other similar expressions. This includes any statements relating to the initiation, timing, progress

and results of Nanox's research and development, manufacturing and commercialization activities with respect to its X-ray source technology

Forward-looking statements are based on information

Nanox has when those statements are made or management's good faith belief as of that time with respect to future events, and are subject

to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by

the forward-looking statements. Factors that could cause actual results to differ materially from those currently anticipated include:;

Nanox's (i) ability to successfully demonstrate the feasibility of its technology for commercial applications; (ii)expectations regarding

the necessity of, timing of filing for, and receipt and maintenance of, regulatory clearances or approvals regarding its X-ray source

technology and the Nanox.ARC from regulatory agencies worldwide and its ongoing compliance with applicable quality standards and regulatory

requirements; (iii)ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers

to manufacture the Nanox.ARC; the market acceptance of the Nanox.ARC and the proposed pay-per-scan business model; (iv)expectations regarding

collaborations with third-parties and their potential benefits; and Nanox's ability to conduct business globally; risks and business interruptions