Trading Statement

18 October 2013

Amiad Water Systems Ltd.

("Amiad" or the "Company")

Trading Update

Amiad, a leading global producer of water treatment and filtration solutions, provides the following trading update.

As stated at the time of the interim results, 2013 is proving to be a transitional year as the Company's new products gain traction, and both its traditional and new segments continue to be subject to fluctuating market conditions.

In spite of the anticipated difficulties, the management had expected the Irrigation segment to perform well and grow in the second half. However, the Company has experienced delays to certain projects and there is a risk that these may now not be executed this year. In addition, as anticipated at the time of the interim results, the slowdown observed in the first half of 2013 in the US and India, particularly in the Municipal and Industrial segments, persisted into the second half and is expected to continue for the remainder of the year.

As a result, the Company expects full year 2013 revenue to be in the range of $115m - $120m and net profit to be in the range of $4m - $6m.

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