Shapir Engineering

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SHAPIR ENGINEERING AND INDUSTRY LTD

("The Company")

July 29, 2025

To:

Israel Securities Authority Via the MAGNA system
Tel Aviv Stock Exchange Ltd. Via the MAGNA system

Dear Sir/Madam,

Subject: Results of Tender for Classified Investors for Early Commitment

Following the Company's immediate report dated July 9, 2025, regarding the advancement of the possibility to raise debt (Reference No.: 2025-01-050816) and subsequent reports by the Company on this matter, the Company is pleased to announce the following:

On July 29, 2025, a tender was held to receive early commitments from classified investors (as defined in Section 1 of the Securities Regulations (Manner of Offering Securities to the Public), 2007), in connection with a possible issuance of bonds (Series D), pursuant to a shelf offering report that the Company may publish according to the Company's shelf prospectus dated May 30, 2025, by way of a uniform offering and initial issuance of bonds (Series D).
The bonds (Series D) were offered to classified investors, by way of a tender on the interest rate, with each unit including NIS 1,000 par value of bonds (Series D).
As part of the tender for the bonds (Series D), orders were received including early commitments to purchase 691,764 units for a total financial amount of approximately NIS 692 million, of which the Company received early commitments to purchase 300,000 units for a total financial amount of NIS 300 million. The (shekel) interest rate determined in the institutional tender, which will constitute the maximum interest rate that the bonds (Series D) will bear as part of the public offering (if held), is 5.22%.

The Company's Board of Directors approved the issuance of the bonds (Series D), by way of a uniform offering, for a total amount of up to NIS 300 million par value, subject to receiving the approval of the Tel Aviv Stock Exchange Ltd., which as of this date has not yet been received.

It is clarified that the public offering, if carried out, will be made within the framework of a shelf offering report, by way of a uniform offering, and that the scope of the public offering and its other terms will be detailed therein. It is also clarified that there is no certainty that the issuance will take place, as it is subject to the Company's discretion and the receipt of the required approvals by law, including the approval of the stock exchange.

Respectfully,