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 a person/entity became an Interest party by virtue of holdings

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 became an interest party by virtue of holdings.

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 concerning a person/entity became an interest party by virtue of holdings

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

1. Holder Details

First name: ________ First name in English as registered in passport: ________ Family name / corporation name: FIMI Opportunity Funds (by FIMI Five 2012 Ltd.) Family / corporation name in English: FIMI Opportunity Funds (by FIMI Five 2012 Ltd.) Identification type: Registrar of Companies in Israel number ■ The holder is a corporation Identification number: 514794924 Citizenship / country of incorporation or registration: Incorporated in Israel Country of Citizenship / incorporation or registration: _______ Address: 98 Yigal Alon St, Tel Aviv

Is the holder a representative for reporting purposes of a number of shareholders holding with him the securities of the company: Yes

Name of controlling shareholder in the interested party: Mr. Ishay Davidi

Identification number of controlling shareholder in the interested party: 57523367

2. Details of the Transaction whereby the holder became an interested party

• A. Essence of transaction: Off – stock exchange acquisition and private placement
• B. Name and type of securities of reference transaction: Ordinary shares
• C. Security stock exchange number: 1083831
• D. Date of transaction implementation: 18/05/2016
• E. Amount of securities in reference transaction: 6,875,000
• F. Price at which the transaction was performed: 1,600 agorot _________
• G. Are the shares dormant or securities convertible into dormant shares: No
• H. Was the total consideration paid on the date of the change: Yes

3. A. List of interested parties holdings following the transaction

Name , type and class of the securities	Number of securities in the stock exchange	Amount of securities	Dormant	Extent of Holding	Extent of Holding (fully diluted)
				% Capital %Voting	% Capital %Voting
Ordinary shares	1083831	6,875,000	No	49.99 49.99	49.99 49.99

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

1. The interested party does not hold other shares or securities in an investee company, if its activity is significant to the activity of the reporting corporation

5. Additional information:

FIMI Fund (by FIMI Five 2012 Ltd., Registrar of Companies company number 514794924), is the general partner in two limited partnerships that directly hold shares in the company: FIMI Opportunity Five (Delaware), Limited Partnership (Registrar of Companies company number 530246974) which holds 3,242,044 ordinary shares of the Company and FIMI Israel Opportunity Five Limited Partnership (Registrar of Companies company number 550246771) which holds 3,632,956 ordinary shares. To the best knowledge of the Company, the ultimate controlling shareholder in the FIMI Fund is Mr. Ishay Davidi.

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

It should be clarified that the fully diluted percentage specified above does not take into account the possibility that the FIMI Fund will be allocated additional shares of the Company, and that additional shares of the Company held by the controlling shareholder of the Company, Mr. Haim Shani, will be transferred to FIMI, in accordance with the share price adjustment mechanism as part of the investment transaction of the FIMI Fund in the company, as specified in sections 3.6.1 and 3.7 of the Transaction Report dated March 31, 2016, as amended on May 2, 2016 (Reference No. 2016-01-057604).

Respectfully,

Unitronics (1989) (R"G) Ltd.