The Phoenix Holdings Ltd.

Legal Proceedings Report • Jul 6, 2021

-Convenience Translation Only-The Hebrew immediate report is the binding report-

5.7.2021

The Phoenix Holdings Ltd. ("the Company")

To To

The Securities Authority The Tel Aviv Stock Exchange Ltd.

www.isa.gov.il www.tase.co.il

Re: The Phoenix Insurance Company Ltd. - Immediate Report

On May 31, 2018, a Judgment was rendered by the Supreme Court (hereinafter: "the Judgment"), whereby the Supreme Court annulled the decision made by the District Court dated July 19, 2016 to approve an Application for Approval of a class action (hereinafter: "the Approval Decision" or the "Application for Approval"), that was filed against a subsidiary of the Company, The Phoenix Insurance Company Ltd. (hereinafter: "The Phoenix Insurance") and other insurance companies, claiming the alleged and unlawful collection of a so-called "sub-annual" payment, and ordered rejection of the Application for Approval in its entirety.

The Supreme Court approved holding further hearing on this judgement (see the details in the Immediate Report dated July 4, 2019 (Reference No. 2019-01-057462) and in Note 7A(1) to the Company's financial statements dated March 31, 2021, which were published on May 27, 2021 (Reference No. 2021-01-031600).

Yesterday, July 4, 2021, at the further hearing, the Supreme Court ruled (by a majority of 4 judges to 3 judges) that the Supreme Court Judgement will be overturned and that the District Court's Approval Decision will be reinstated and upheld, the Application for Approval will be accepted, and the lawsuit will be conducted in its merits in the District Court, except with respect to the individual claims that were raised and rejected against The Phoenix Insurance (and another insurance company) regarding the "sub-annual" collection at a rate that allegedly exceeds that which is allowed by law.

The Phoenix Insurance is studying the Judgement.

The date on which the Judgement was received by The Phoenix Insurance is yesterday at 17:10.

Respectfully,

The Phoenix Holdings Ltd. c/o Attorney Meni Neeman, Chief Legal Counsel and Secretary of the Company