Unitronics — Share Issue/Capital Change 2016

May 18, 2016

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UNITRONICS (1989) (R"G) LTD.

PRESS RELEASE Airport City, Israel, May 18, 2016

***Regulated Information*** ***For Immediate Release***

An Immediate Report Concerning Granting Rights to Purchase Shares (Securities Convertible Into Share Capital)

Airport City, Israel – May 18, 2016 - Unitronics published the attached Immediate Report pursuant to the requirements of the Israeli law, in connection with Granting Rights to Purchase Shares (Securities Convertible Into Share Capital).

About Unitronics

Unitronics (1989) (R"G) Ltd. is an Israeli company that engages, through its Products Department, in the design, development, production, marketing and sale of industrial automation products, mainly Programmable Logic Controllers ("PLCs"). PLCs are computer-based electronic products (hardware and software), used in the command and control of machines performing automatic tasks, such as production systems and automatic systems for industrial storage, retrieval and logistics. The Company also engages, through its Systems Department and/or its subsidiaries, in the design, construction and maintenance services in the framework of projects for automation, computerization and integration of computerized production and/or logistics systems, mainly automated warehouses, automated distribution centers and automated parking facilities. The Company's PLCs are distributed by over one hundred and sixty distributors (and a wholly owned US subsidiary) in approximately sixty countries throughout Europe, Asia, America and Africa. The services of the Systems Department are provided to customers in Israel and also outside Israel.

This press release contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Management of the Company as well as assumptions made by and information currently available to the Management of the Company. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks and other factors which may be outside of the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as projected, anticipated, believed, estimated, expected or intended.

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Unitronics (1989) (R"G) Ltd. (the "Company")

Immediate Report of Granting Rights to Purchase Shares (Securities Convertible Into Share Capital)

Pursuant to regulation 32 of the Israeli Securities Regulations (Periodic and Immediate Reports), 5730 - 1970

1. We hereby advise you that on 18/05/2016 the corporation granted rights to purchase shares as follows:

1 Type of allocated securities: Other Notice of the right to receive shares Amount of allocated securities: 535,714 Total consideration for the allocated securities: No charge Type of shares resulting from the exercise / conversion of securities: Ordinary shares Share number on the stock exchange of shares claimed in the exercise of securities: 1083831 Number of shares resulting from the full exercise / conversion of securities: 535,714 See Section 3.6.1 of the Exceptional Private Placement Report Total exercise addition to be received from the full exercise / conversion of securities into shares: See Section 3.6.1 of the Exceptional Private Placement Report Period in which the securities may be exercised: From _________ to _________ Allocated securities issued will be listed: No

1. Allocation of these shares are further to the Private Placement Report published on 02/05/2016 and its reference number is 2016-01-057610.

The right to receive shares is granted to FIMI as a part of the investment transaction (the "Transaction"). FIMI will not be required to pay additional consideration for the exercise of this right. For the request of the Tel-Aviv stock Exchange, the Company obligated that as a condition for the allocation of the additional shares the company will capitalize to the share capital part of the premium of the shares allotted, or from any other source in equity permitted for capitalization under the law, in the amount of NIS 0.30 for any additional share allocated to FIMI as a result of the exercise of this right.. For further details see the Private Placement Report dated March 31, 2016, as amended on May 2, 2016, Reference No. 2016- 01-057610.

Respectfully,

Unitronics (1989) (R"G) Ltd.