Turpaz Industries: Acquisition of Pentaor, a company specializing in the development, production and marketing of functional solutions for the bakery industry

This is an English translation of an immediate report in Hebrew which was published on April 13, 2022 (reference number: 2022-01-047560) (hereafter: the “Hebrew version“). This English version is for convenience only. It is not an official translation and has no binding force. Although reasonable care and skill have been exercised in the preparation hereof, no translation can never perfectly reflect the Hebrew version.In the event of any discrepancy between the Hebrew version and this translation, the Hebrew version shall prevail.

Turpaz Industries Ltd.

(there “Company“)

Company number: 514574524

Address: Halahav 2 Holon Tel. : 03-5560913; Fax: 03-5560915

April 13, 2022

For:

For:

Israel Securities Authority (“IS A“)

Tel Aviv Stock Exchange Ltd (“TASE“)

Reported via Magna

Reported via Magna

Regarding: Acquisition of Pentaor, a company engaged in the development, production and marketing of functional solutions for the bakery sector

Turpaz Industries Ltd. (“Tourpaz“) is honored to announce that on April 12, 2022, it signed an agreement for the purchase of 100% of the issued and paid-up share capital and voting rights of Pentaor Ltd., a private company incorporated in Israel ( “purchase agreement” and “Pentaor“), of its shareholder (the “Seller“), in exchange for the sum of 10 million NIS ($3.1 million). The transaction was finalized at the time of signing and financed from its own resources. In accordance with the terms set out in the purchase agreement, the Seller will be entitled to additional consideration in the aggregate amount of up to NIS 1.5 million ($0.5 million), subject to the achievement of business objectives set out in the purchase agreement for the years 2022 and 2023.

Pentaor, founded in 1997 by the late Dr. Oren Ben Israel, is engaged in the development, production, marketing and sale of unique functional solutions in the field of baking with advanced technology, under the PentaCake brand, which allow a combination of benefits like softness, moisture, volume, texture and long shelf life. Pentaor operates in the Zarzir Industrial Zone adjacent to the Turpaz Development Center and exports the vast majority of its products to emerging markets, such as Vietnam, India and Southeast Asia.

Pentaor’s operations in the Vietnamese and Southeast Asian markets join Turpaz’s operations in Vietnam through its subsidiary WFF1, allowing Turpaz to expand and deepen its operations in one of the world’s emerging markets. In addition, the acquisition of Pentaor will enable purchasing and customer synergies between Turpaz Group companies, expanding the Group’s portfolio and diversifying the product basket for the group’s customers in Israel and around the world.

In parallel with the completion of the transaction, an agreement has been signed with the seller, who will continue to manage and lead Pentaor in the coming years and will join the management team of the Turpaz group.

According to financial data provided by Pentaor, based on Pentaor’s audited financial statements for 2020 and unaudited management reports for 2021, Pentaor’s revenue in 2020 and 2021 was NIS 5.6 million and NIS 6 .6 million NIS respectively ($1.6 million and $2.0 million respectively).

Turpaz does not consider this acquisition as the acquisition of a material asset.

It will be specified that Turpaz’s assessments regarding the expansion of its business in the Vietnamese and Southeast Asian markets and regarding the growth trends of this market are forward-looking information as defined in the securities law. of 1968, the realization of which depends, among other things, on factors beyond the control of Turpaz, and which may be realized differently from what is indicated in this report.

Sincerely,

Turpaz Industries Ltd.

Signed by: Karen Cohen Khazon, Board Chair and CEO

1Western Flavors Fragrances Production Join Stock Company (“WFF”). for more details on WFF, see section 1.3.3 of Turpaz’s periodic report published on 14.3.2022 (reference: 2022-01-029374).