Unitronics

Business and Financial Review • Jan 27, 2016

PRESS RELEASE Airport City, Israel, January 27, 2016

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 – January 27, 2016 - 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 January 26, 2016 the Company through Unitronics Systems Inc. (a second-tier subsidiary incorporated in the United States and wholly owned by a wholly owned Company subsidiary, Unitronics Automated Solutions Ltd.), signed an agreement ("the Agreement") with a US customer unrelated to the Company or its interested parties ("the Customer") for the construction of a 300-spaces automated parking facility in an apartment building located in New Jersey in the United States ("the Project").

Under the Agreement, the Company is expected to receive a total consideration of USD 4.5 million (NIS 17.5 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.

The Project is planned for completion in the second half of 2017.

The subsidiary, Unitronics Automated Solutions Ltd., has guaranteed to the Customer the fulfillment of all the obligations of the second-tier subsidiary in the United States under the Agreement.

In the last three months, the Company has completed the construction and delivery in the United States of three automated parking facilities (based on a technology developed by the Company in recent years), of which two are located in New Jersey and one in California. To date, the Company has built and delivered in North America five automated parking facilities containing a total of 1400 parking spaces.

The Company considers this a highly important agreement, providing evidence, in its opinion, of the adoption by decision-makers in the US market of the solutions offered by the car parks it has developed.

The Company believes that its automated parking facilities offer its customers an economic and efficient solution to the problem of parking in residential and commercial buildings.

Respectfully,

Unitronics (1989) (R"G) Ltd.