Unitronics

Major Shareholding Notification • May 18, 2016

UNITRONICS (1989) (R"G) LTD.

PRESS RELEASE Airport City, Israel, May 18, 2016

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

An Immediate Report Concerning person/entity who Ceases to be an Interested Party in the Corporation

Airport City, Israel – May 18, 2016 - Unitronics published the attached Immediate Report pursuant to the requirements of the Israeli law, in connection with a person/entity who Ceases to be an Interested Party in the Corporation.

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")

Immediate Report Regarding person/entity who Ceases to be an Interested Party in the Corporation

Pursuant to regulation 33(G) of the Israeli Securities Regulations (Periodic and Immediate Reports), 5730 - 1970

1. Holder Details

First name: ________

Family name / corporation name: Peer Hammer Sorenson Identification type: Other identification number Identification number: 22858582 Citizenship / country of incorporation or registration: Private person without Israeli citizenship Country of Citizenship / incorporation or registration: Denmark Address: Tasingevej 15, 9500, Hobro, Denmark

Is the holder a representative for reporting purposes of a number of shareholders holding with him the securities of the company: No

2. Details of the transaction whereby the holder ceased to be an interested party in the corporation:

• A. Essence of the transaction does not involve activity with securities ________ dilution of holdings due to private placement to the FIMI Fund, as specified in the Extraordinary Private Placement Report dated May 2, 2016, Reference No. 2016-01- 057610
• B. Name and Type of Security: Ordinary shares
• C. Security stock exchange number: 1083831
• D. Date of transaction implementation: 18/05/2016
• E. Amount of securities in reference transaction: 0
• F. Price at which the transaction was performed: 0 _________
• G. Are the shares dormant shares: No
• H. Was the total consideration paid on the date of the change: No

If the total consideration was not paid on the date of the change, please specify the date of completion of the payment: No charge, as mentioned above, dilution of holdings due to private placement to the FIMI Fund, as specified in the Extraordinary Private Placement Report dated May 2, 2016, Reference No. 2016-01-057610.

3. A. Holdings following the transaction

Name , type	Number of	Amount	Dormant	Extent of	Extent of
and class of	securities in	of		Holding	Holding
the	the stock	securities			(fully diluted)
securities	exchange
				Capital %	Capital %
				Voting %	Voting %
Ordinary	1083831	685,121	No	4.98	4.98
shares				4.98	4.98

B. Holder is not a member of an institutional reporting group

1. Additional details

2. Date and time when the corporation first learned of the event or the issue: 18/05/2016 at 14:00.

Respectfully,

Unitronics (1989) (R"G) Ltd.