Unitronics

Capital/Financing Update • Oct 26, 2014

UNITRONICS (1989) (R"G) LTD.

PRESS RELEASE Airport City, Israel October 26, 2014

***Regulated Information*** ***For Immediate Release*** Re: Immediate Report Regarding The Full Early Redemption of Series 3 Debentures of the Company- Clarification regarding interest rate

Airport City, Israel – October 26, 2014 – Unitronics published the attached Report, pursuant to the requirements of Israeli law, in concerning with The Full Early Redemption of Series 3 Debentures of the Company - Clarification regarding interest rate.

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 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.

Re: Immediate Report Regarding The Full Early Redemption of Series 3 Debentures of the Company- Clarification regarding interest rate

Further to the Company's publication dated October 7, 2014 (reference number : 2014-01-173862) (hereinafter: the "Original Report"), regarding the full early redemption of the outstanding balance of the Series 3 Debentures of the Company (hereinafter: the "Debentures") which were issued pursuant to a shelf offering report dated March 22, 2011 (hereinafter: the "Offering Report"), by virtue of a shelf prospectus of the Company dated February 23, 2011, and the amendment thereto dated March 17, 2011 (hereinafter: the "Shelf Prospectus") and the deed of trust dated February 22, 2011 and the amendment thereto dated March 17, 2011 (hereinafter: the "Deed of Trust") and pursuant to the Company's publication dated October 19, 2014 regarding the early redemption (reference number : 2014-01-176886) (hereinafter: the "Additional Report"). The Company hereby clarify that the actual interest rate to be paid on the date of early redemption is 7.254986%. It is further clarified that the interest includes both the interest rate specified under the terms of the Debentures to period from the last interest payment up to the date of early redemption and the excess amount as specified in section 6 of the Original Report which is also considered as interest .

Sincerely yours,

Unitronics (1989) (R''G) Ltd.

Gabriel Badusa, CFO.