#1Telos Initial Public Offering November 2020#2Disclaimer Telos Corporation (the "Company") has filed a registration statement with the Securities and Exchange Commission (the "SEC") for the offering to which this presentation relates. The registration statement has not been declared effective. Before you invest, you should read the registration statement, and in particular the "Risk Factors" contained therein, for more complete information about the Company and the proposed offering. You may obtain the registration statement for free by visiting EDGAR on the SEC website at www.sec.gov. Other than statements of historical fact, all information contained in this presentation, including statements regarding the Company's future operating results and financial position, its business strategy and plans, product, service, and technology offerings, market growth and trends, and objectives for future operations, are forward-looking statements. In some cases you can identify forward-looking statements by terminology such as "may", "will", "should", "plan", "predict", "expect", "estimate", "anticipate", "intend", "goal", "strategy", "believe", and similar expressions and variations thereof. The Company has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the heading "Risk Factors" in the registration statement that the Company has filed with the SEC for the offering to which this presentation relates. Moreover, the Company operates in a very competitive and rapidly changing environment, the new risks emerge from time to time. It is not possible for the Company to predict all risks, nor can it assess the effect of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements it may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely on forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this presentation and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on the Company's internal sources. While the Company believes the industry and market data included in this presentation are reliable and are based on reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. The Company has not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of such products or services. This presentation also includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measure to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison, Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents and for the calculation of certain other financial metrics. Telos 2#3Offering Summary Issuer Offering Size Over-Allotment Option Filing Range $16.00-$18.00 Pro Forma Shares Outstanding¹ 60.7MM (62.5MM assuming over-allotment option) Use of Proceeds Ticker Symbol/ Exchange Expected Pricing Bookrunners Co-Managers Telos Telos Corporation 12.4MM primary shares 15% 1) Reflects fully diluted shares outstanding Acquire remaining equity interest in Telos ID Cash consideration to retire all Exchangeable Preferred Stock Repay all senior and subordinated debt General corporate purposes TLS / Nasdaq Global Market Week of November 16 B. Riley Securities, BMO Capital Markets, and Needham & Company Colliers Securities LLC, D.A. Davidson & Co., Northland Capital Markets, Wedbush Securities, and MKM Partners 3#4Telos Senior Management Team John Wood (President, CEO, and Chairman) Michele Nakazawa (EVP and CFO) Edward Williams (EVP and COO) Richard Tracy (SVP, CSO, and CTO) Joined Telos as EVP and COO in 1992; named President and CEO in 1994 Formerly worked in finance for Dean Witter Reynolds, and UBS Securities Joined Company in 2004 as VP and Controller; named CFO in 2005 Former experience includes senior financial leadership roles with Ubizen, National Security Analysts, and Federal Systems Division of IBM • Joined Company in 1992 as SVP responsible for finance, pricing, purchasing, and Defense Contract Audit Agency compliance; named COO in 2000; also served as CFO 2003-2005 Formerly served as CFO at US Government contractors Centel Federal Systems and M/A.com Information Systems Joined Company in 1986; appointed SVP and Chief Security Officer in 2005 Co-invented Xacta in 2000 and principal inventor named on five issued-patents involving security risk and compliance management 4#5Telos Introducing Telos: Premier Provider of Software-based Solutions for the World's Most Security Conscious Customers Telos Security Solutions consistently deliver more efficient, more effective, and more secure operating environments • Endorsed by marquee intelligence community customers with growing commercial market penetration Large and fast growing total addressable market (TAM) - $80B+¹ Driven by ongoing cloud adoption and growing security needs in both government and commercial channels Clear visibility into rapidly accelerating, 85%+ recurring revenue growth Growth inflection fueled by key long-term contract wins for Telos' identity management and cyber misattribution solutions Improving revenue mix and operating leverage to drive significant margin expansion Scalable platform delivers strong free cash flow conversion 1) Based on Telos management estimates 5#6Telos Telos Snapshot Recently-Awarded, Long-Term Security Solutions Contracts to Accelerate Revenue Growth Intellectual Property • 3,000+ man-years of IP¹ • 60% of employees with Clearance Revenue (SMM) $108 2017 $138 2018 22% CAGR $159 2019 $113 Note: Reflects fiscal year ended December 31 1) Based on Telos management estimates 2) Recurring revenue for each of the last three years 9 mo. 2019 Secure Networks Security Solutions 20% YoY $135 9 mo. 2020 Revenue Profile • 85% recurring² • 50% sole source / limited competition¹ 350+ Customers Microsoft rackspace technology TSA Pre LOCKHEED MARTIN HRANE amazon CMS Raytheon Technologies Symantec citi verizon salesforce T 6#7Telos Unique Solution Set Addressing Urgent Customer Needs Security Solutions Secure Networks 수 XACT A GHOST IDTrust360 AMHS Governance risk and compliance solution that facilitates cloud migration Secure Networks Mis-attribution obfuscation solution that protects user information and location • Trusted identity solutions. • Secure message and archive system for the government Telos. Operation/ ops Operation / defense of networks and cyber 80% of 2019 Gross Profit 20% of 2019 Gross Profit 7#8Marquee Customers hp Telos FedEx rackspace infor vibrent 98 Deloitte. salesforce SIEMENS Symantec citi accenture SAP NS2 NATIONAL SECURITY SERVICES verizon zscaler LOCKHEED MARTIN Microsoft Azure aws Cloud Checkr IronNet Cybersecurity Raytheon Technologies NORTHROP GRUMMAN UNITED STA PARTAI DEPART RESERVE UNITED STA CORPORATED OF STATE 11281 NK OF NEW YORK-PISI BI AV OF STATES DEFENSE AMERICA ASE U.S. HOMELAN AGENCY CMS CYMES FORMES THE OF TATION ANSPOR TRIESTORY ITION MENT OF = OF JUSTICE ENTICATION 8#9Demand for Telos' Security Solutions Has Never Been Greater Telos 4.1B $8.6MM 954K 280 Exposed records from data breaches in 1H19 Average cost of data breach in U.S. as of 2019 Average web attacks blocked per day Average days to identify & contain a breach Key Security Solutions Expanding TAM ($B)¹ $81.3 Xacta Telos Ghost Sources: Comparitech, Symantec Internet Security Threat Report 2019, Cyber Risk Analytics 2019 MidYear Data Breach Report, IBM 2020 Cost of a Data Breach Report 1) Based on Telos management estimates 14.0% CAGR $136.6 Telos ID#10Telos is at the Forefront of Security Solution Development 1994 Common Access Card ("CAC") Largest biometric application in the government Telos aws 2018 U.S. Census Bureau contract (1MM total enumerators w/in 4 mo. at 1,100 physical service centers) XACTA 2016 Xacta partnership with Amazon Web Services to provide cloud solution to the CIA United States Census 2020 2019 Microsoft Azure partnership to optimize Xacta cyber risk management for sovereign and critical infrastructure clouds GHOST 2018 Telos Ghost launched to shield communications, transactions, and networks Microsoft Azure XAC 2020 TSA PreCheck & Center for Medicare & Medicaid Services contract wins (10-year contracts) TELOS GHOST 2019 Telos Ghost wins $39MM contract with classified government customer; converting to program of record TSA Pre IDTrust 360 CMS 10#11XACTA Industry-Leading Cyber Risk & Compliance Management Xacta solution enables customers' cloud journeys ↓↑ Telos GRC Workflow Operationalizes complex frameworks and required reporting Compliance Data Sharing Automates security compliance activities through inheritance & control mapping Continuous Monitoring Delivers constant and real-time visibility into cyber risks and compliance status On-premises 晶圓 Hybrid Multi-Cloud Capability B 0% E Security Solutions % of Business Line Revenue 35% 50% Cloud / Multi Cloud XACT A Xacta accounts for common, shared, and customer specific controls 100% 11#12XACTA Reduced Onboarding Time, Continuous Monitoring, and "Referenceability" Drive Customer Adoption Telos rackspace technology XACT A Commercial SaaS Companies zscaler IronNet infor Cloud Cybersecurity Checkr Hewlett Packard salesforce Enterprise C2S/CIA aws XACTA 0% U.S. Governmental Agencies Security Solutions % of Business Line Revenue 35% 50% 100% 12#13XACT AⓇ AWS and Microsoft Azure Partnerships "With Xacta's...inheritance and provider project features and capabilities, AWS expects a dramatic increase in efficiencies and effectiveness in completing ATOS, in some cases up to 90% faster." Rick Trinidad, Worldwide Public Sector, AWS Telos Worldwide Public Cloud Service Revenue $ in Billions $242.7 2019 2022F 14% CAGR $364.1 Public Cloud Adoption % of All Respondents AWS Microsoft Azure "We recognize the value of Xacta in addressing the unique compliance needs of our customers, and we're working with them to accelerate development time and bring this cyber risk management solution directly to Microsoft Azure users." Lily Kim, General Manager, Azure Global at Microsoft Google Cloud VMware Cloud on AWS IBM Cloud Oracle Cloud 19% 12% 12% 16% Alibaba Cloud 3% 6% 8% Currently Use 9% 6% 11% 8% 7% 52% 61% 22% 13% Experimenting 0% 14% 16% Security Solutions % of Business Line Revenue 16% 35% ■Plan to use 9% 50% 100% 13#14XACTA salesforce infor rackspace technology Inheritance Creates Channel Partnerships to Drive Incremental Revenue Current Telos aws zscaler Microsoft Azure XACTA Prospective & Pending ORACLE XACTA Google IBM Cloud Automated inheritance accelerates cloud adoption and creates incremental demand for Xacta solution Cloud customers and partners use Xacta to automatically inherit common compliance data 0% Security Solutions % of Business Line Revenue 35% 50% Cloud infrastructure owners share control information with partners and customers via Xacta Automated inheritance accelerates workload migration by operationalizing shared security and enabling reciprocity Cloud provider customer relationships create channel to sell Xacta into new organizations 100% 14#15TELOS GHOST Telos Reduce Attack Surface, Hide Digital Exhaust & Disguise Identity You can't attack what you can't see U Cloaked Services Encrypted communications, storage and applications Private Network Access Secure, private network in the cloud Private Web Access Anonymous worldwide internet access 09% 10% Security Solutions % of Business Line Revenue 50% 100% 15#16TELOS GHOST Telos Mission-Critical Cybersecurity Where it is Needed Most Access Node Cyber operators investigate threats without revealing their own presence, identity, or physical location. Anonymous VPN for protected access to enterprise resources Private Internet access for research, email, communications Military and law enforcement communicate without jeopardizing their identity, location, or mission. Protect personal, legal, and financial data in transit www. Ensure that medical data is kept confidential A Private voice, text, chat, and video for unified communications Work on the web without giving away location 0% 10% Financial executives and legal counsel exchange candid views protected from unauthorized access. Exit Node Security Solutions % of Business Line Revenue Healthcare professionals and pharmaceutical researchers work in confidence knowing their work is kept confidential. 50% 100% 16#17IDTrust 360 Advancing Capabilities & Proven Validation Driving New Customer Wins Telos DMDC Military ID • Provider of the largest identity application in the US Government - Military ID (CAC) • Biometric capture • Smart cards å FBI Fingerprint Capture •SaaS biometric web capture •Pre-employment screening • Identity vetting 1) Based on Telos management estimates derived from customer/sponsor contract assumptions TSA - Airports Employee Vetting • Continuous monitoring of airport employees - Security Threat Assessment • Fingerprint capture and FBI records check * 100+ significant airports, airlines, general aviation customers * 0% Security Solutions % of Business Line Revenue 50% PreCheck & CMS Wins •TSA PreCheck™ Enrollment Provider - 2MM new members per year over 10-year contract 50% • Provider Enrollment & Oversight (PEO) contract holder Background checks for 1.5MM Centers for Medicare & Medicaid (CMS) health providers each year¹ | 100% 17#18IDTrust 360 IDTrust360 Cloud Business Enrollment Centers Customer Applications Core Services Telos Adjunction & Onboarding PayGOVIS PE SEC HERAK Test & Staging TRENDS URCE Office DEPOT aws IDTrust360 Deltek now splunk> PRTG Technology Support Center Ann Camect now. Office 365 tenable.io Customer Service Cloud Apps Cloud Apps Outside ATO NOC/SOC Infrastructure Fully integrated suite of Telos ID and commercial services for identity verification, enrollment, fingerprinting, insider threat management, biometric matching, and personnel security 0% Mobile Passport United States Census Security Solutions % of Business Line Revenue 50% Affiliated Service Providers Bureau 50% CMS Finra IDTrust360 has direct interfaces to: salesforce TRENDSOURCE Office DEPOT Deloitte. 100% The FBI's criminal records DHS's terrorist watch list • Treasury's pay.gov • Other government identity risk management systems Numerous commercial identity, intelligence, and risk-based data sources 18#19· Productivity - Mobile / remote access • Coverage - Seamless roaming between Wi-Fi and cellular on any device, anywhere . # Secure Mobility and Network Management / Defense Secure Mobility Solutions Cost Savings - Single integrated enterprise mobility management solution Telos Efficiency - Simplify the process of updating devices with the most recent version of apps and content Security - Centrally managed security policy 0% Secure Networks % of Business Line Revenue 75% 50% 25% Secure Mobility Network Mgmt. & Defense Network Management Solutions • Network Operations - Situational awareness of networks, including users, systems and security posture • Network Maintenance Preventive maintenance, troubleshooting and repairs 100% • Defensive Cyber Operations - Real-time threat monitoring, analysis and remediation 19#20Financial Highlights & Objectives Telos 20#21Accelerating Revenue Growth and Expanding Margins $108 0.1% 2017 Telos $138 6.3% 2018 Security Solutions 22% CAGR $159 3.7% 2019 Secure Networks $113 6.6% 20% YOY $135 10.5% —Adj. EBITDA Margin 9 mo. 2019 9 mo. 2020 Note: Reflects fiscal year ended December 31 Note: Adj. EBITDA margin reflected on an enterprise basis, before adjustments for the Non-Controlling Interests 1) Based on Telos management estimates derived from customer /sponsor contract assumptions 2) Reflects contract ceiling Key New Contract Wins • TSA PreCheck-$1.7B+¹ total 10-year contract potential CMS - $2.0B² total 10-year contract potential U.S. Government Telos Ghost Customer - $39MM¹ with potential to increase dramatically over 10 years once converted to program of record 21#22Telos Pro Forma Capitalization (Sin MM) Cash Senior Term Loan¹ Subordinated Debt² Finance Lease Obligations Total Debt Preferred Stock³ Common Stock4 Enterprise Value Current $10.3 $17.2 3.6 16.0 $36.8 $142.6 $678.1 $847.2 Note: Value of common stock reflects market value based on $17.00 per share price, excluding over-allotment option 1) Debt balances shown as of 10/31/20E 2) Debt balances shown as of 10/31/20E 3) Preferred balance shown as of 11/19/20E and includes estimated accrued preferred dividends 4) Reflects fully diluted shares outstanding Pro Forma $44.2 16.0 $16.0 $1,031.1 $1,002.8 22#23Growth Strategies Leverage diverse Security Solutions to expand commercial market Telos presence A Grow revenue & expand margins by building robust sales channels Extend Security Solutions platform & ecosystem to capitalize on massive scalability * Target & replace inefficient legacy products within organizations 6 Exploit increasing demand for NIST and other cybersecurity frameworks m Broaden existing reach within U.S. federal government vertical Expand international footprint through channel partners 23#24Telos Long-Term Aspirational Goals¹ 1) Revenue Gross Margin Adj. EBITDA Margin Free Cash Flow This is a forward-looking statement. Please refer to forward-looking statement disclaimer on page 2. $1B 50% 30% $150MM 24#25Telos $210MM IPO Transaction Rationale IPO results in simplified corporate structure, strengthened balance sheet, and accelerated growth trajectory with margin expansion Acquire remaining equity interest in Telos ID Retire all outstanding Exchangeable Redeemable Preferred Stock ("ERPS") Repay all existing senior and subordinated debt Expand direct sales force and grow channel partnerships 25#26Investment Highlights Premier provider of software-based solutions for the world's most security conscious customers 3,000+¹ man-years invested in technology development Telos Security Solutions consistently deliver more efficient, more effective, and more secure operating environments Endorsed by marquee intelligence community customers with growing commercial market penetration Large and fast growing total addressable market (TAM) – $80B+¹ Driven by ongoing cloud adoption and growing security needs in both government and commercial channels Clear visibility into rapidly accelerating, 85%+ recurring revenue growth Growth inflection fueled by key long-term contract wins for Telos' identity management and cyber misattribution solutions Improving revenue mix and operating leverage to drive significant margin expansion • Scalable platform delivers strong free cash flow conversion Telos 1) Based on Telos management estimates 26#27Appendix Telos® 27#28Telos Historical Income Statement ($ in thousands) Revenue Costs and Expenses Cost of Sales Selling, General & Administrative Expenses Operating Income Other Income (Expenses) Non-Operating Income Interest Expense (Loss) Income before Taxes Benefit (Provision) for Taxes Net (Loss) Income Less: Non-Controlling Interest Net Loss Attributable to Telos Corporation FY 2019 $159,218 106,874 47,319 $5,025 201 (7,467) ($2,241) 104 ($2,137) (4,264) ($6,401) 1H 2019 $67,214 48,223 20,795 ($1,804) 193 (3,500) ($5,111) 177 ($4,934) (220) ($5,154) 1H 2020 $87,589 57,774 24,346 $5,469 12 (4,013) $1,468 144 $1,612 (3,590) ($1,978) 28#29Telos Adjusted EBITDA Reconciliation ($ in thousands) Net income (loss) attributable to Telos Corporation Interest Expense (Benefit) provision for income taxes Depreciation Stock-based compensation expense Adjusted EBITDA FY 2017 ($5,833) 6,690 (2,767) 1,999 50 $139 FY2018 ($1,640) 7,258 31 3,028 $8,677 FY2019 ($6,401) 7,467 (104) 4,972 $5,934 1H 2019 ($5,154) 3,500 (177) 2,341 $510 1H 2020 ($1,978) 4,013 (144) 2,734 $4,625 29#30Telos Solution Set Detail Customer Need / Pain Point • Time, cost, effort of cyber risk and compliance management • Compliance as an obstacle to cloud adoption • Audit fatigue-many standards Massive financial, reputational, and personal consequences for breaches of mobile/digital assets . Reliance on inefficient identity trust applications • Identifying fraud and mitigating the impact of fraudulent activities Protection of employee and customer identity data Requirement for secure communications with certainty of delivery and non-repudiation functionality Telos Continuous need to protect enterprise networks Telos Solution ХАСТА TELOS GHOST IDTrust 360 AMHS Telos Secure Networks Solution Capabilities Automated cyber risk management workflow • Inheritance and control mapping • Automated continuous monitoring Secure mobile access anywhere • Security through encryption and obfuscation • Virtual obfuscation network-as-a-service with encryption and managed attribution • Digital risk management platform offering enterprise identity and scalable security solutions • Omni-channel services leveraging tech partners Integrated suite of advanced services modernizing management of threats and privacy of sensitive data • Web-based; full spectrum of messaging systems Routes incoming messages and creates archive . Solutions across and beyond the enterprise Operation / defense of networks and cyber ops 30#31Telos® Solutions that empower and protect the enterprise." 31