Unitronics 1989 RG : PR280317b Directors’ Fee Update

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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Re: AN IMMEDIATE REPORT, CONCERNING DIRECTORS' FEE UPDATE

An immediate report is submitted pursuant to Regulation 37A (5) of the Securities Regulations (Periodic and Immediate Reports), 1970, and in accordance with Regulation 1a (2) of the Companies Regulations (Easements in Transactions with Interested Parties), 2000 (hereinafter: "Easements Regulations"), That on March 28, 2017, the Company's Board of Directors, after receiving the approval of the Company's Compensation Committee of March 23, 2017, approved an amendment to the salary of directors who are not officers and are not external directors of the Company (hereinafter: "the Ordinary Directors"), In a manner identical to that of external directors of the Company, which was updated in respect of 2017 following an increase in the Company's shareholders' equity, in accordance with the Companies Regulations (Rules Regarding Remuneration and Expenses for an External Director), 2000 (Hereinafter: "the Remuneration Regulations").

Summary of the Compensation Committee and Board of Directors' reasons:

1. The remuneration update for the ordinary directors is in accordance with the Company's compensation policy, which determines that the remuneration of ordinary directors shall be identical to the remuneration of external directors.

2. The updated remuneration to be paid to the ordinary directors shall not exceed the maximum amount pursuant to regulations 4, 5 and 7 of the Remuneration Regulations.

Respectfully,