Unitronics

Legal Proceedings Report • Mar 27, 2017

PRESS RELEASE Airport City, Israel, March 27, 2017

UNITRONICS (1989) (R"G) LTD.

***Regulated Information*** ***For Immediate Release***

AN IMMEDIATE REPORT, CONCERNING SIGNING OF AN AGREEMENT FOR THE CONSTRUCTION OF AN AUTOMATED PARKING FACILITY IN THE USA

Airport City, Israel – March 27, 2017 - Unitronics published the attached Immediate Report pursuant to the requirements of the Israeli law, in connection with signing of an agreement for the design, supply and construction of an automated parking facility for a client in USA.

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 Systems 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 sixty distributors (and a wholly owned US subsidiary) in approximately sixty 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 SIGNING OF AN AGREEMENT FOR THE CONSTRUCTION OF AN AUTOMATED PARKING FACILITY IN THE USA

Pursuant to regulation 36(a) to the Israeli Securities Regulations (Periodic and Immediate Reports), 5730 – 1970

The Company is herewith reports that on March 26, 2017 the Company through Unitronics Inc. (a subsidiary incorporated in the United States and wholly owned by the Company), signed an agreement ("the Agreement") with a US customer unrelated to the Company or its interested parties ("the Customer") for the construction of an automated parking facility in a building located in California in the United States ("the Project").

Under the Agreement, the Company is expected to receive a total consideration of USD 9.3 million (NIS 34 million), to be paid according to progress in the achievement of milestones. The Company will recognize in its financial statements income from the Project according to the percentage of completion method, with the percentage of completion determined based on completion of stages of work in the Project.

To ensure fulfillment of its obligations in the project, the Company undertook to provide certain guarantees.

The Project is planned for completion within two years.

Respectfully,

Unitronics (1989) (R"G) Ltd.