AIRO Group Holdings, Inc. (NASDAQ:AIRO)("AIRO" or the "Company"), a next-generation aerospace and defense company, today announced that its RQ-35 Heidrun, developed through its drone brand, Sky-Watch, has been granted Blue UAS status by the Defense Contract Management Agency (DCMA). With this approval, the RQ-35 is recognized by the Department of War (DoW) as a secure, compliant unmanned aircraft system eligible for government and defense acquisition under NDAA requirements.

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Soldier launching the Blue UAS certified RQ-35 ISTAR Drone

Blue UAS designation confirms that a system meets DoW criteria for secure design, trusted supply chain sourcing, and reliable mission performance. For the RQ-35 Heidrun, this status establishes eligibility for defense and government acquisition, enabling qualified agencies to move efficiently from procurement review to field deployment across national security and critical infrastructure missions.

Achieving Blue UAS certification represents a key milestone in AIRO's U.S. expansion strategy. It streamlines access to DoW and federal procurement channels, accelerating the Company’s ability to compete for and secure U.S. defense contracts while supporting long-term revenue growth across domestic and international markets.

"The RQ-35 has already earned its stripes in some of the toughest conditions a drone can face, and Blue UAS approval removes an important procurement hurdle, enabling U.S. defense and government customers to acquire a trusted, mission-proven ISR platform more efficiently," said AIRO Group CEO, Joe Burns. "As demand grows for trusted, NDAA-compliant systems, this designation puts a battle-tested platform directly in the hands of the people who need it most."

The RQ-35 Heidrun brings a proven operational record to the U.S. defense market. Battle-tested, including active deployment in the Ukraine conflict, the RQ-35 drone has accumulated extensive flight hours in contested, GPS-denied, and electronically degraded environments. Capable of fully autonomous flight operations, the hand-launched RQ-35 delivers a 2.5-hour flight time with optionality for on-board AI capabilities and is designed for rapid deployment by a single operator.

To meet growing U.S. demand, AIRO recently opened a manufacturing facility in Phoenix, Arizona, which serves as its primary domestic hub for production, delivery, and lifecycle support. The facility is expected to reach full operational capacity later this year. With the Phoenix facility's growing domestic production capacity, the new Blue UAS designation strengthens AIRO's position as a vertically integrated, U.S.-based provider of trusted ISR solutions.

"Blue UAS approval validates the technology, operational credibility, and manufacturing strength we have built at AIRO, while expanding our ability to support U.S. defense customers at scale," said AIRO Group Executive Chairman, Dr. Chirinjeev Kathuria.

With Blue UAS status secured, the RQ-35 Heidrun now moves faster into the hands of the defense, government, and critical infrastructure customers who depend on it, another proof point in AIRO's track record of delivering secure, mission-ready unmanned systems where they're needed most.

About AIRO Group Holdings, Inc.

AIRO Group Holdings is a next-generation aerospace and defense platform driving innovation across defense and commercial markets. Headquartered in McLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines a global reach with deep technical expertise. Through a vertically integrated model, AIRO delivers mission-critical solutions centered on its drone platforms, leveraging advanced avionics, integrated training capabilities, and embedded autonomy across systems.

Forward looking statements

The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," or "anticipates," or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release and include, but are not limited to, the expected timing of full-scale production of the RQ-35; AIRO's ability to leverage its existing manufacturing infrastructure and supply chain capabilities; the development, testing, scaling, production, deployment, performance and capabilities of the RQ-35; customer interest in, demand for, market acceptance of and deployment opportunities for the RQ-35 and AIRO's other drone platforms; AIRO’s ability to compete across a broader set of mission requirements and grow its global defense platform; AIRO’s ability to execute its strategic initiatives across U.S., NATO, and allied markets; and other statements that are not historical fact. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, including those described in the section titled "Risk Factors" in AIRO’s most recent Quarterly Report on Form 10‑Q, filed with the Securities and Exchange Commission ("SEC"), as well as other filings AIRO may make with the SEC in the future. Forward-looking statements represent AIRO’s management’s beliefs and assumptions only as of the date such statements are made. AIRO undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

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