BSD Crown Ltd. (LSE: BSD)                           

                                    (the "Company")                                

                                    Company Update                                 

                                                            Ramat Gan, 25 July 2016

    Update regarding Results of the General Meeting

    Further to Company's announcement dated 5 July 2016, regarding results of the
    General Meeting  and the ruling of the Financial Department of the Israeli
    District Court in Tel Aviv, the Company hereby announces that after receiving
    the explicit consent from Zvi V & Co Ltd (the "Petitioner") and from Yossi
    Williger (the Petitioner and Yossi Williger together being the "Willigers") and
    the entry into of an  agreement between the Company and Willigers (the "
    Agreement") on 20 July 2016, the Company announces the following: (a) the
    resolution to appoint Iris Even-Tov as an external director of the Company is
    to be treated as passed at General Meeting of 5 July 2016; (b) the Company
    intends to appoint Adv. Sarit Leviathan as an additional board member in the
    Company to be appointed by the Board at a board meeting scheduled for today;
    and (c) the retired judge, will be appointed as a director of the Company on
    behalf of the Court to oversee Company's corporate governance and to report to
    the court and the shareholders (instead of Mr Avi Zamir, as previously
    proposed); and (d) each of the parties shall waive their rights to bring any
    claims regarding the General Meeting.

    Independent board committee appointment

    The Company announces that its board of directors decided to establish a
    committee of independent directors to investigate all of the Company's deposits
    and financial matters so as to retrieve and protect the Company's assets and to
    recommend the board on the action to be taken by the Company in order to regain
    all its assets and rights of the Company. The first members of this committee
    will be the external director, Mrs. Iris Even-Tov, and the independent
    directors, Mr. Gil Leidner, Mrs. Neomi Enoch and Mrs. Sarit Leviathan.

    Filing of a request to approve derivative lawsuit

    Further to Company's announcement dated 7 January, 2016 with respect to the
    motion requesting disclosure of certain documents and board minutes relating to
    certain bank accounts held by the Company and BGI Investments (1961) Ltd. ("BGI
    ") and their subsidiaries in Austria and Azerbaijan, the Company announces that
    a request to approve a derivative action, on behalf of the Company and BGI,
    against the Company's past and present officers and auditors, regarding all
    damages allegedly to have been caused to the Company due to the deposits in
    foreign banks, in the total amount of approximately US$50 million, has been
    filed with Financial Department of the Israeli District Court in Tel Aviv. The
    Company and BGI are considering the claim and will file its reply in due
    course.

    The Company will provide further updates, regarding the matters set out in this
    announcement, in due course.

    Enquiries:

    Yossi Schneorson, CEO: Yossi@bsd-c.com