Strauss : Immediate Report on an Event or Matter Deviating from the Ordinary Business of the Corporation

1f8a678e-7b12-425f-ae00-39afab7533b9.pdf CONVENIENCE TRANSLATION The Hebrew version is the binding version

STRAUSS GROUP LTD.

Number at Registrar of Companies 520003781

Securities of the corporation are listed for trading on the Tel Aviv Stock Exchange Abbreviated name: Strauss Group

49 Hasivim St., Petach Tikva 49517

Telephone: [phone], Fax: [phone]

Email: [e-mail] Company website: www.strauss-group.com

Broadcast on MAGNA: January 18th, 2016 Reference:2016-01-012352

Messrs Messrs

The Securities Authority The Tel Aviv Stock Exchange Ltd.

www.isa.gov.il www.tase.co.il

IMMEDIATE REPORT ON AN EVENT OR MATTER DEVIATING FROM THE ORDINARY BUSINESS OF THE CORPORATION

Regulation 36(a) of the Securities Regulations (Periodic and Immediate Reports), 1970 Nature of the Event: The Court Has Approved an Order for a 30-day Stay of Proceedings for Mega Retail Ltd.

1. The Group announces that the court has approved an order for a 30-day stay of proceedings with respect to one of the Group's major customers in Israel, Mega Retail Ltd.

   
   

   The debt of Mega's parent company, Alon Blue Square Israel Ltd., recorded on the Group's books of account, amounts to approximately NIS 42 million.

   
   

   At the time of filing of this report, Company Management anticipates that the approval of the stay of proceedings will not have a material impact on the Company's results of business operations thanks to trade credit insurance and provisions for doubtful debts.

   
   

   The information contained in this report on the impact of the filing of the motion for a stay of proceedings on the Company is forward-looking information as this term is defined in the Securities Law, 1968, which is based on information in the Company's possession on the date of this report and includes the Company's estimates on this date. Actual results may differ materially from those anticipated, among other things as a result of different developments in the stay of proceedings procedure.

   
   

2. Date and time when the corporation first learned of the event or matter: January 18th, 2016, 08:10 a.m.

Signatories: Michael Avner, Senior Vice President, CLO & Company Secretary; Noa Herman- Shifris, Adv.

Previous names of the reporting entity: Strauss-Elite Ltd., Elite Industries Ltd.

Electronically reported by Herman-Shifris Noa, title: Adv./Legal Counsel

49 Hasivim St., Petach Tikva 49517, telephone: [phone], fax, 03-6752279 email: [e-mail]