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.

Shaphir Engineering and Industry Ltd.

("the Company")

June 29, 2026

To

Tel Aviv Stock Exchange Ltd.

via the MAGNA system

To

Israel Securities Authority

via the MAGNA system

Dear Sir/Madam,

Subject: Results of Offering based on a Shelf Offering Report dated June 28, 2026

In accordance with the provisions of Section 30 of the Securities Law, 5728-1968, and the provisions of the Securities Regulations (Notification of Results of Offering in a Prospectus), 5730-1969, the Company hereby announces the results of the offering based on the Company's shelf offering report dated June 28, 2026 (Ref No.: 2026-01-060582) (hereinafter: "the Shelf Offering Report"), pursuant to the Company's shelf prospectus dated May 30, 2025, as published on May 29, 2025 (Ref No.: 2025-01-038988).

1. According to the Shelf Offering Report, the Company offered securities to the public as follows:

1.1. Up to NIS 501,630,000 par value of BONDS (Series 4) (unlinked), registered in name (hereinafter: "the Offered Series 4 Quantity"), by way of series expansion, in an auction for the unit price, which were offered to the public by way of a uniform offering under the Public Offering Regulations, at a price not less than NIS 1,082 per unit, where the composition of each unit and its minimum price are as follows:

1. The subscription list for the purchase of the units offered to the public within the framework of the above auctions opened on Monday, June 29, 2026 at 10:00 and closed on the same day at 16:00.

2. The following are the results of the public offering according to the Shelf Offering Report:

3.1. The auction regarding the BONDS (Series 4)

3.1.1. Within the framework of the auction, 63 orders were received for the purchase of 415,200 units with a total monetary scope of approximately NIS 449.2 million, of which 62 orders for the purchase of 415,000 units were received pursuant to an early commitment of classified investors, as detailed in Section 5.1 of the Shelf Offering Report) and one additional order for the purchase of 200 additional units was received from the public.

3.1.2. In accordance with Section 1.1.1 of the Shelf Offering Report, the maximum quantity of Series 4 BONDS issued stands at a total of NIS 415,000,000 par value BONDS (Series 4) (hereinafter: "the Maximum Quantity of Series 4 BONDS Issued"), and therefore the amount of surplus Series 4 BONDS (as defined in the Shelf Offering Report) that was not allocated is 200 units and the allocation rate (which is the ratio between the Maximum Quantity of Series 4 BONDS Issued and the Offered Series 4 Quantity) for all ordering parties stood at approximately $99.95\%$ (hereinafter: "the Allocation Rate for Series 4 BONDS").

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.

3.1.3. The unit price determined in the auction is NIS 1,082 (hereinafter: "the Unit Price Determined in the Auction").

3.1.4. In accordance with the terms of the Shelf Offering Report, 415,000 units were allocated, as follows:

3.1.4.1. 56 orders from classified investors for the purchase of 374,951 units, in which a price higher than the Unit Price Determined in the Auction was specified, were partially accepted, such that each ordering party will receive approximately 99.95% of their order, totaling 374,770 units.

3.1.4.2. 6 orders from classified investors for the purchase of 40,049 units, in which the Unit Price Determined in the Auction was specified, were partially accepted, such that each ordering party will receive approximately 99.95% of their order, totaling 40,030 units.

3.1.4.3. One order from the public for the purchase of 200 units, in which the Unit Price Determined in the Auction was specified, was fully accepted, such that the ordering party will receive 100% of their order, totaling 200 units.

3.1.5. In light of the above, the Company will issue NIS 415,000,000 par value BONDS (Series 4).

1. The BONDS (Series 4) will be issued at the determined unit price, which is above their adjusted value as of this date, and therefore they are without discount.

2. In accordance with the provisions of Section 7.1 of the Shelf Offering Report, the new uniform weighted discount rate of the BONDS (Series 4), after the expansion of the BONDS (Series 4) as stated, is 0.19423%.

3. The immediate gross proceeds to be received by the Company within the framework of the auction regarding the BONDS (Series 4) offered according to the Shelf Offering Report, total approximately NIS 449.03 million.

The Company thanks the investing public for its response to the offering according to the Shelf Offering Report.

Sincerely,

Shaphir Engineering and Industry Ltd.

Signed by: Adv. Amir Shaked, Chief Legal Counsel and Company Secretary.

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. .

6/29/2026 | 3:51:32 PM | v1.2.5