Bet Shemesh Engines Holdings (1997) Ltd.

Business and Financial Review • Aug 4, 2025

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

BET SHEMESH ENGINES HOLDINGS (1997) LTD.

(hereinafter: the Company)

1 Virginia St., Western Industrial Zone, Beit Shemesh Tel: 02-9909201; Fax: 02-9916713

Date: July 4, 2025

Subject: Engagement for Jet Engine Production – Additional Orders Amounting to NIS 337 Million and Increase of Forecast to NIS 1.3 Billion

Following immediate reports dated September 12, 2023 and March 19, 2024 (references: 2023-01-086011 and 2024-01-023503, respectively), regarding engagements for the development and production of jet engines, the Company reported orders of approximately \$124 million (about NIS 471 million), and a forecast expected to reach a total of about \$267 million (about NIS 1 billion). The Company is pleased to update on the receipt of additional orders from the customer in the amount of approximately \$100 million (about NIS 337 million) (hereinafter: "the Order").

Accordingly, the total volume of orders received as of this date for the Order, and the previous engagements as mentioned above, amounts to a cumulative total of approximately \$224 million (about NIS 808 million), which are expected to generate revenues for the Company over the engagement period, which is expected to span up to about 4 years.

Additionally, the Company is raising the overall estimate for the above engagements from about NIS 1 billion in a previous announcement to a total of NIS 1.3 billion (of which NIS 808 million have already been received as stated). It should be clarified that the forecast of additional future orders over the engagement period is only an estimate and does not obligate the customers.

In the Company's assessment, the realization of some of the Company's estimates regarding future orders indicates the quality of execution, technological capabilities, and the trust the Company enjoys with this significant and strategic customer. It also serves as a positive indication regarding the likelihood of realization of the Company's estimates concerning additional expected orders.

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

For the purpose of this report, the Company received an exemption certificate pursuant to Section 19(a)(2) of the Securities Law, 1968, in connection with details whose disclosure may harm state security.

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

The above information regarding expected revenues and costs over the engagement period constitutes forward-looking information,

as defined in the Securities Law, 1968, which refers to future events whose realization is not certain. The aforementioned forward-looking information is based on information or estimates existing in the Company and may not materialize as a result of factors not dependent on the Company, such as customer needs, regulatory changes, the existence of competitors, the occurrence of any of the Company's risk factors as described in the annual report for 2024, etc.

Respectfully,

• BET SHEMESH ENGINES HOLDINGS (1997) LTD.
  • By: Dov Feldman, CFO