Israel : Convening of an Annual General Meeting of the Shareholders of Israel Corporation – English version

ISRAEL CORPORATION LTD

Registrar Number: 520028010

To: The Securities Authority www.isa.gov.il

To: The Tel Aviv Stock Exchange www.tase.co.il

Form 460 (public) Published in MAGNA: 12.1.2017

Reference: 2017-01-005787

Immediate Report on Convening of a General Meeting

Regulation 36B (a) and (d), and Regulation 36C of the Securities Regulations (Periodic and Immediate Reports), 5730 - 1970

Note: In the event that one of the items on the agenda of the general meeting is the approval of a transaction with a controlling shareholder or the approval of an extraordinary proposal, then Form T133 or T138 should first be filed in , accordingly, and subsequently a report pursuant to this form should be reported.

Is there a possibility to vote by the electronic voting system: Yes

The corporation hereby announces: the convening of a general meeting

Note: In the event of any change of the Meeting's time please mark the "postponement of the Meeting" or "postponement by court order".

The reference's number of the previous announcement of the Meeting is , which was summonsed on . The cause of postponement or cancellation is

Note: please refer to the reference number of the previous announcement of the Meeting's convention or postponement.

1. Type of share:

   The acquitted security: MR 1 Shekel

   The number of the security on the Stock Exchange which entitles the holder thereof to participate in the meeting is: 576017

   The record date for determining the entitlement to participate and vote at the meeting is: January 18, 2017 Note: if a Meeting is required on more than one security number, please report Form T460 for each additional security, separately. Reports which will note additional securities numbers will obligate sending an amended report.

2. On the date of: January 12, 2017

   It was decided to convene an Annual General Meeting

   That will be held on January 30, 2017, at 10:00 a.m.

   At the address: 23 Aranha St., Millennium Tower, 24th floor, Tel Aviv.

3. On the agenda:

   Note: Numbering the subjects on the agenda shall be according to their appearance order in the report, if attached as a file.

   The subjects/ resolutions which shall be brought at the general meeting:

   1.

   The subject/ the resolution and the details thereof:

   Discussion of the periodic report of 2015: A discussion of the Company's audited financial statements and the Board of Directors' Report on the State of the Company's Affairs for the year ended on December 31, 2015.

   Declaration: A suitable field for this classification does not exist.

   Note: a value from this table sets the text of the shareholder's declaration at the electronic voting system. For the exchange table please press here

   Reference of the previous report regarding approval of private offer (Form 138):

   No transaction between the Company and a controlling shareholder regarding sections 275 and 320(f) of the Companies Law

   Reference of the previous report in the matter (form 133):

   Explanation to sections at the Companies Law or of the Securities Law or any other law to approve the resolution

   A non-voting reporting item. The discussion made in respect to Section 60(b) to the Companies Law.

   Note: In event of a transaction with a controlling shareholder which does suits any of the fields in the law sections' table please choose the field "declaration: a suitable field for classification does not exist" and choose "Yes" transaction with a controlling shareholder.

   Solely in the event of Debentures Meeting or in the event of a non-controlling shareholder transaction, and if there is no suitable field in the table, please explain and elaborate the relevant sections of the law which by their virtue the decision is required.

   Is the matter requires a disclose of a relation or other characteristic of the voting shareholder: No Note: It is possible to choose these values only if "declaration: a suitable field for classification does not exist" was marked in the previous table and it is not a transaction between the company and the controlling shareholder.

   In the event of Debenture Meeting

   It was been decided on the existence of another matter Please phrase the another matter

   Note: The details of the other matter set the text of the declaration which will be included on the electronic voting system. Please phrase a question which the answer for it will be in a version of "yes"/"no". The question will appear on the voting system next to the decision which is on the agenda and the voter will have the possibility to choose between "Yes"/"No" and the possibility to add details when the answer is "yes".

   It has been decided on the required additional details from the holders: specification regarding the additional details from the holders or the form of convening the

   meetings (in case of a meeting according to 350):

   Note: This field sets forth the text for the required additional details which will be included in the electronic voting system. The voter shall be entitled to add more details in the field in a text format.

   • Amendments of the disclosure.

   • Minor change or a change which entitles the company in comparison to the text of the decision as reported in the previous report.

   • Removed from the agenda.

   • The item was discussed in a previous meeting.

   • The item was added to the agenda by court order.

   • The item was added to the agenda in respect with regulation 5B to the Companies Regulations (Notice of General Meetings and Category Meeting in a Public Company), 5760-2000.

     Note: After the record date there is no possibility to execute an amendment in the in the resolution except for an amendment in transaction conditions which benefit with the company or a minor change. Moreover, after the record date, there is no possibility to add new subjects to agenda except in a court order or in according with Regulation 5B to the Notice Regulations.

     This item is for reporting purposes only.

     The majority required for approval is

     Is the rate of holdings of the controlling shareholders in the Company's shares will give the controlling shareholders the required majority to pass the proposed resolution

     2.

     The subject/ the resolution and the details thereof:

     Appointment of Auditors: the reappointment of the Company's auditors accountants and in accordance with the Company's Articles, the authorization of the Board of Directors of the Company to determine their fees as mentioned in the report.

     Declaration: A suitable field for this classification does not exist.

     Note: a value from this table sets the text of the shareholder's declaration at the electronic voting system. For the exchange table please press here

     Reference of the previous report regarding approval of private offer (Form 138):

     No transaction between the Company and a controlling shareholder regarding sections 275 and 320(f) of the Companies Law.

     Reference of the previous report in the matter (form 133):

     Explanation to sections at the Companies Law or of the Securities Law or any other law to approve the resolution

     In accordance with sections 60(b) and 154(b) to the Companies Law.

     Note: In event of a transaction with a controlling shareholder which does suits any of the fields in the law sections' table please choose the field "declaration: a suitable field for classification does not exist" and choose "Yes" transaction with a controlling shareholder.

     Solely in the event of Debentures Meeting or in the event of a non-controlling shareholder transaction, and if there is no suitable field in the table, please explain and elaborate the relevant sections of the law which by their virtue the decision is required.

     Is the matter requires a disclose of a relation or other characteristic of the voting shareholder: No Note: It is possible to choose these values only if "declaration: a suitable field for classification does not exist" was marked in the previous table and it is not a transaction between the company and the controlling shareholder.

     In the event of Debenture Meeting

     It was been decided on the existence of another matter Please phrase the another matter

     Note: The details of the other matter set the text of the declaration which will be included on the electronic voting system. Please phrase a question which the answer for it will be in a version of "yes"/"no". The question will appear on the voting system next to the decision which is on the agenda and the voter will have the possibility to choose between "Yes"/"No" and the possibility to add details when the answer is "yes".

     It has been decided on the required additional details from the holders: specification regarding the additional details from the holders or the form of convening the

     meetings (in case of a meeting according to 350):

     Note: This field sets forth the text for the required additional details which will be included in the electronic voting system. The voter shall be entitled to add more details in the field in a text format.

   • Amendment of the disclosure.

   • Minor change or a change which entitles the company in comparison to the text of the decision as reported in the previous report.

   • Removed from the agenda.

   • The item was discussed in a previous meeting.

   • The item was added to the agenda by court order.

   • The item was added to the agenda in respect with regulation 5B to the Companies Regulations (Notice of General Meetings and Category Meeting in a Public Company), 5760-2000.

Note: After the record date there is no possibility to execute an amendment in the in the resolution except for an amendment in transaction conditions which benefit with the company or an unimportant change. Moreover, after the record date, there is no possibility to add new subjects to agenda except in a court order or in according with Regulation 5B to the Notice Regulations.

This resolution on the Agenda is for voting. The majority required is a regular majority.

Is the rate of holdings of the controlling shareholders in the Company's shares will give the controlling shareholders the required majority to pass the proposed resolution Yes

3.

The subject/ the resolution and the details thereof:

Appointment of Aviad Kaufman for an additional term in office as directors of the Company, which shall be entitled to remuneration and terms of office as stated in Section B of the report.

Appointment or dismissal of director as mentioned in sections 59 and 230 of the Company's Law. Note: a value from this table sets the text of the shareholder's declaration at the electronic voting system. For the exchange table please press here

Reference of the previous report regarding approval of private offer (Form 138):

No transaction between the Company and a controlling shareholder regarding sections 275 and 320(f) of the Companies Law.

Reference of the previous report in the matter (form 133):

Explanation to sections at the Companies Law or of the Securities Law or any other law to approve the resolution

Note: In event of a transaction with a controlling shareholder which does suits any of the fields in the law sections' table please choose the field "declaration: a suitable field for classification does not exist" and choose "Yes" transaction with a controlling shareholder.

Solely in the event of Debentures Meeting or in the event of a non-controlling shareholder transaction, and if there is no suitable field in the table, please explain and elaborate the relevant sections of the law which by their virtue the decision is required.

Is the matter requires a disclose of a relation or other characteristic of the voting shareholder: Note: It is possible to choose these values only if "declaration: a suitable field for classification does not exist" was marked in the previous table and it is not a transaction between the company and the controlling shareholder.

In the event of Debenture Meeting

It was been decided on the existence of another matter Please phrase the another matter

Note: The details of the other matter set the text of the declaration which will be included on the electronic voting system. Please phrase a question which the answer for it will be in a version of "yes"/"no". The question will appear on the voting system next to the decision which is on the agenda and the voter will have the possibility to choose between "Yes"/"No" and the possibility to add details when the answer is "yes".

It has been decided on the required additional details from the holders: