Tel Aviv Stock Exchange Ltd. — Share Issue/Capital Change 2021

Mar 4, 2021

March 4, 2021 385266

Re: Contemplated Scheme for Buyback and Allotment of Shares to TASE Members - Update

Pursuant to the Company's immediate report dated February 10, 2021 (reference no.: 2021-01-017251) concerning a contemplated twofold scheme for the buyback of shares and the allotment of shares to TASE members (hereafter: "the Scheme") and in accordance with the directive of the Securities Authority (hereafter: "the Authority"), the Company updates that it has received a letter from the Authority, informing the Company that the Authority is currently examining the legality of the Scheme and that at the conclusion of the examination the Authority's staff may find that it does not coincide with the transitional provision set out in Amendment No. 63 of the Securities Law. A copy of the Authority's letter is attached to this report.

In response to the Authority's letter, the Company sent a letter to the Authority, ending with a request to receive the reasoning of the Authority's staff and to hold a discussion with the staff forthwith. A copy of the Company's letter is attached to this report (excluding the attachments thereto).

To remove any doubts, it is hereby clarified that the Scheme is still under examination and its execution, which is at the sole discretion of the Company's Board of Directors, has not yet been approved. Accordingly, the execution of the Scheme constitutes forward-looking information, the realization of which is uncertain, inter alia, due to the position of the Tax Authority and/or the position of the Securities Authority and/or due to changes in the market conditions and/or due to non-acceptance by the TASE members.

The Tel-Aviv Stock Exchange Ltd. Ittai Ben Zeev, CEO