Unitronics

Capital/Financing Update • Jun 13, 2017

PRESS RELEASE Airport City, Israel, June 13, 2017

UNITRONICS (1989) (R"G) LTD.

***Regulated Information*** ***For Immediate Release*** An immediate report concerning the Annual report regarding Company Debentures (series 5) published by the trustee for such Debentures for 2016

Airport City, Israel – June 13, 2017 - Unitronics published the attached Immediate Report pursuant to the requirements of Israeli law, in connection with the publication of the Annual report regarding Company Debentures (series 5) published by the trustee for such Debentures.

About Unitronics

Unitronics (1989) (R"G) Ltd. is an Israeli company that engages, through its Products Department, in the design, development, production, marketing and sale of industrial automation products, mainly Programmable Logic Controllers ("PLCs"). PLCs are computer-based electronic products (hardware and software), used in the command and control of machines performing automatic tasks, such as production systems and automatic systems for industrial storage, retrieval and logistics. The Company also engages, through its Automated Solutions Department and/or its subsidiaries, in the design, construction and maintenance services in the framework of projects for automation, computerization and integration of computerized production and/or logistics systems, mainly automated warehouses, automated distribution centers and automated parking facilities. The Company's PLCs are distributed by over one hundred and forty distributors (and a wholly owned US subsidiary) in approximately fifty countries throughout Europe, Asia, America and Africa. The services of the Systems Department are provided to customers in Israel and also outside Israel.

This press release contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Management of the Company as well as assumptions made by and information currently available to the Management of the Company. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks and other factors which may be outside of the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as projected, anticipated, believed, estimated, expected or intended.

Unitronics (1989) (R"G) Ltd.

(the "Company")

Re: An immediate report concerning the Annual report regarding Company Debentures (series 5) published by the trustee for such Debentures for 2016

Essence of event: Annual Trustee report re: Company Debentures (Series 5)

Attached annual report on the affairs of the trustee, for holders of debentures (Series 5), Hermetic Trust (1975) Ltd, for the period from June 14, 2016 until the date of this report.

Respectfully,

Unitronics (1989) (R"G) Ltd.

Tel Aviv, June 13, 2017

To: Debenture Holders (Series 5) of Unitronics (1989) (R"G) Ltd.

To: Unitronics (1989) (R"G) Ltd. 3 Haarava St. Airport City

Dear Sir/Madam:

Re: Annual Report –Debentures (Series 5) Issued by Unitronics (1989) (R"G) Ltd.

By virtue of its duty as the trustee of debentures (Series 5) issued by Unitronics (1989) (R"G) Ltd. ("the Company"), Hermetic Trust (1975) Ltd (the "Trustee") is pleased to present the annual report with respect to activities performed by us during the period commencing on June 14, 2016 and until the date of this report (" Period of Report"), all in accordance with the provisions of the Deed of Trust and in accordance with section 7 of the Trust Law-1979 and the provisions of section 35H1 of the Securities Law, 1968.

1. Deed of Trust

The Deed of Trust was executed by and between the Company and the Trustee On September 10, 2014, nominated Trustee. As trustee of the debenture holders (Series 5) ("the Deed of Trust ").

2. Securities Issued

Regarding the number of outstanding debentures, see Company's reports and details on the MAYA site of the Tel Aviv Stock Exchange Ltd.

3. Collateral and Commitments

The debentures are not secured by any collateral.

4. Financial covenants

The Company is obligated under the Deed of Trust to comply with financial covenants.

5. Payments of Principal and Interest

For details regarding payments of principal and interest please review the debenture conditions overleaf including the appendices to the Deed of Trust and the Company's reports and details on the MAYA website of the Tel Aviv Stock Exchange Ltd.

6. Extraordinary Events

During the period of report the Trustee has not been informed of extraordinary event in connection with the debentures of the Deed of Trust, which should be brought to the attention of the debenture holders..

7. Certificates to the Trustee

The Company submitted all required certificates under the Deed of Trust.

8. Debentures Holders' Meetings and Shareholders' Meetings

• 8.1 Regarding meetings of the Company's shareholders held during the period of the report, including issues on the agenda and resolutions that were adopted, see the Company's reports on the MAYA website of the Tel Aviv Stock Exchange Ltd.
• 8.2 No debenture holders meetings were convened during the Period of Report.

This report is not a substitute for review by holders of the Company's public reports, including its financial statements and the auditors' opinions.

Sincerely yours,

Hermetic Trust (1975) Ltd.