Unitronics

Capital/Financing Update • Aug 20, 2014

UNITRONICS (1989) (R"G) LTD.

PRESS RELEASE Airport City, Israel August 20, 2014

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

Re: Notice Of The Intention To Raise Capital From The Public Through The Issuance Of Debentures (Series 5)

Airport City, Israel – August 20, 2014 – Unitronics published the attached Report, pursuant to the requirements of Israeli law, in concerning with a Notice Of The Intention To Raise Capital From The Public Through The Issuance Of Debentures (Series 5).

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.

Public August 20, 2014

To: Israel Securities Authority www.isa.gov.il

To: Tel Aviv Stock Exchange Ltd. www.tase.co.il

Subject: Notice Of The Intention To Raise Capital From The Public Through The Issuance Of Debentures (Series 5)

The Company hereby announces that following the publication of the Shelf Prospectus of the Company dated August 20, 2014, it is considering publishing a Shelf Offering Report (hereinafter: "the Shelf Offering Report") in the near future, according to which debentures (Series 5) of the Company (hereinafter: "the debentures") shall be offered to the public. It is to be be noted that the offer of the securities under the Shelf Offering Report shall only be made in Israel and not in Belgium.

The Board of Directors of the Company has authorized the management to negotiate and formulate the terms of the debentures, and perform the other activities required for the public offering.

The publication of the Shelf Offering Report and and the issuance thereunder (if and when implemented), shall be subject to receipt of all the necessary approvals by law, including the approval of the institutions of the Company with respect to the terms and structure of the issue and the approval of the stock exchange to list the Debentures (Series 5) for trading. As of the date of this report, the date of the raising of the capital, its scope and the terms of the debentures to be offered to the public (if and when offered) have not yet been determined.

It is to be noted that there is no certainty that the debenture issue will be implemented. This report should not be considered an offer to purchase securities of the Company and any such proposal, if offered, shall be specified in a Shelf Offering Report that will be published by the Company.

Sincerely, Unitronics (1989) (R.G) Ltd. By Gabriel Badusa, CFO