Aura Smart Air Ltd

Business and Financial Review • Nov 28, 2022

Aura Smart Air Ltd.

(the "Company")

This is an English translation of a Hebrew report of the company, that was published on November 21, 2022 (reference No. 2022-01-139405) at the ISA reporting website (magna.isa.gov.il) (hereafter: "The Hebrew Version"). The English version is only for convenience purposes. This is not an official translation and has no binding force. The translation in any case cannot perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

Attn: Attn: November 21, 2022 www.isa.gov.il www.tase.co.il

The Securities Authority The Tel Aviv Stock Exchange Ltd.

Re: Efficiency Plan and Review of Corporate Equity Operations

Further to what was stated in section 1.2 of the Board of Directors' report attached to the Company's Median Report for the period ending on June 30th, 2022, which was published on August 29th, 2022 (reference number: 2022-01-109384 - "The Board of Directors' Report" and the "Median Report"), regarding the Company's Board of Directors' instructions to the Company's management to formulate a plan to reduce expenses, the Company respectfully updates as follows:

1. The Company formulated an efficiency plan to save costs and improve the Company's financial results, including: (a) workforce reduction in research and development (R&D), marketing, sales and service vendors; (b) a 5% reduction in executive (excluding directors) salary costs (in addition to what is stated in section 1.2 of the Board of Directors' report); (c) reducing contracting costs with service providers; and (d) delaying regulatory processes that are not necessary for the benefit of marketing and selling the Company's products¹ (the "Efficiency Plan").

It should be further noted that, as part of the Efficiency Plan, the Company intends to invest its resources, in the immediate and short term future, in research and development activities and marketing and sales activities to customers in its primary target markets – Israel and the USA, rather than in other territories. The Company estimates that the efficiency plan will generate an annual cost reduction of around USD 0.8 million.

1. The Company intends to implement several equity activities of substantial scale in the near future to ensure its business continuity of regular activities.

The information contained in the above message, including that pertaining to the Company's evaluations concerning the effect of the efficiency plan on the Company and its financial results, is forward-looking information, within the meaning of the term in the Securities Law, 1968, based on the data available to the

¹ Including the process of obtaining FDA approval.

Company's management as of the report's date and to which there is no certainty that it will be realized. The actual results of the Efficiency Plan may differ from those shown above due to changes that will apply to its assessments and/or changes that will apply to market conditions (including the labor market), changes in the business environment and/or as a result of the realization of some of the Company's risk factors as detailed in Section 32 of Chapter A of the Company's periodic report for the year ended December 31, 2021 (published on March 15, 2022; reference number: 2022-01-030457) included in this report as reference. Therefore, changes in the aforementioned factors may affect the Company's estimates and even result in them not being realized, all or in part, or being realized differently, including materially

Sincerely,

Aura Smart Air Ltd. By: Aviad Shneiderman, CEO