Shufersal Ltd.

Share Issue/Capital Change • Mar 4, 2021

Press Release

Tel Aviv, 4 March 2021

Shufersal intention to carry out a directed new share issue of up to approximately NIS 700 million ******************

Tel Aviv, Israel

Shufersal Ltd. (the "Company") is working with Epsilon and Citigroup (the "Joint Global Coordinators") to evaluate conditions for carrying out a directed equity issue of up to approximately NIS700 million, through an accelerated book building process (the "Share Issue"). The Share Issue will be directed to Israeli and international institutional investors.

Share Issue

The Company has engaged the Joint Global Coordinators to evaluate the conditions to carry out a directed new share issue of up to approximately NIS 700million, directed to Israeli and international investors of institutional character through an accelerated book building process (the "Bookbuilding"). The subscription price and the total number of new shares in the Share Issue will be determined through the Bookbuilding, which will commence immediately. The Share Issue is contingent on approval by the Company board of directors and publishing a shelf offering report, which, alongside pricing and allocation, is expected to occur no later than the end of Sunday 7th March 2021. The board of directors can at any moment decide to terminate the Bookbuilding and thus refrain from carrying out the Share Issue.

Use of proceeds

The proceeds shall be added to the Company's current cash balance, which shall serve the Company inter alia for financing its ongoing business activity, making various investments, utilizing business opportunities, and repaying obligations, all - according to the decisions of the Company's board of directors, as they shall be from time to time.

Assuming the raise of the entire capital offered under the Shelf Offering Report, the Company does not anticipate that within 180 days as of the Shelf Offering Report Date, it will carry out another public issuance of shares.

Advisers

Epsilon acting as Israeli Underwriter and Citi acting as Global Coordinator for the International Offering in connection with the Share Issue (together, the "Joint Global Coordinators").

Note

The abovementioned is for informative purposes only and in no way should be considered an offer and / or advice to purchase and / or sell and / or hold securities. Information about the company, its business and activities is detailed in the Company's reports to the public on ISA and TASE websites, including in the Company's draft shelf report dated March 3,2021. The binding conditions of the issuance will be specified in the definitive shelf offering report to be published to by the Company as and when published, and any other report published by the Company in accordance with the provisions of any law. The provisions stated in this document do not constitute an indication or create any obligation of the Company to carry out an issuance of securities. It is clarified that the company may change the scope of the issuance, postpone or cancel it, all at its sole discretion.