DANEL (Adir Yeoshua) Ltd.

Legal Proceedings Report • Oct 28, 2025

Immediate Report on an Event or Matter Deviating from the Ordinary Course of Business of the Corporation

Regulation 36 to the Securities Regulations (Periodic and Immediate Reports), 1970

Subject of Report:

Update regarding the tender of the National Insurance Institute

1.

Following section 1.2 of the company's Board of Directors' report for the period ended June 30, 2025, which was published on August 21, 2025 (Reference No. 2025-01-062632), and the company's immediate report dated September 30, 2025 (Reference No. 2025-01- 073178), which is incorporated in this report by reference, regarding the new tender of the National Insurance Institute ("NII" and the "Tender", as applicable) and an administrative petition submitted in connection with the tender by the Association of Nursing Service Providers in Israel ("the Association"), of which the company is a member (the "Petition"), as well as additional petitions filed regarding the tender, the company wishes to update that on October 27, 2025, a judgment was given in the petitions whereby most of the petitioners' claims were rejected, and with respect to certain claims the honorable court decided to intervene in the NII's discretion and returned the discussion on these matters to the tender committee.

It was further determined in the judgment that after completion and correction of these issues, the tender committee must set a new deadline for submitting proposals, no less than 60 days from the publication date of the updated tender instructions. Failure to amend the tender as requested by the petitioners, and leaving most of its terms as-is, may cause significant harm to the company's profitability, the extent of which cannot be assessed at this stage and depends, among other things, on how the tender committee chooses to amend the tender instructions on matters returned to its table. The company is studying the judgment and its implications, and as part of this will consider whether to submit an appeal to the judgment, including via the Association, in relation to parts of the decisions made by the court which the company considers to be erroneous.

The date and time the corporation first became aware of the event or matter: October 27, 2025, at 17:46.

3.

If the report was delayed – the reason for the delay in submission: (Blank)

4.

On the date (Blank), at (Blank), the prevention for reporting was removed.

5.

The company is a shell company as defined in the Stock Exchange regulations: (Checkbox blank)

Authorized Signatories for the Corporation

No.	Name	Position
1	Ilan Ovadia	CFO

Explanation: According to Regulation 5 of the Periodic and Immediate Reports Regulations (1970), a report filed according to these regulations shall be signed by those authorized to sign on behalf of the corporation. The staff's position on this matter can be found on the ISA website: Click here.

Previous document reference numbers concerning this matter (references are not incorporated): (None listed)

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 corporation's securities are listed for trading on the Tel Aviv Stock Exchange

Short name: Danel

Address: 12 Abba Hillel St., Ramat Gan, 5250606. Tel: 03-7564032, Fax: 03-7564031

Email: ilanov@edanel.co.il

Electronic reporting person name: Erez Yitzhaki Role: Legal Advisor Reporting company address: 12 Abba Hillel St., Ramat

Gan, 5250606. Tel: 03-7564032, Fax: 03-7564031 Email: erezy@edanel.co.il