Update regarding French certification

12 July 2017

Amiad Water Systems Ltd.

("Amiad" or the "Company")

Update regarding French certification

Further to the announcement of 31 May 2017, Amiad (AIM: AFS), a leading global producer of water treatment and filtration solutions, provides the following update regarding the previously disclosed issues with the certification used by its French Subsidiary company (the "Subsidiary") to confirm compliance of certain products ("Products"), sold by the Subsidiary, with the French Attestation de Conformité Sanitaire ("ACS") standard.

Following an initial investigation, the Company has now put in place new management oversight of its French and European operations, and has appointed Amiad's VP Operations & COO as interim President of the Subsidiary. The former President of the Subsidiary is leaving the Company with immediate effect. In addition, application for the requisite ACS certification for the relevant Products has now been submitted. Amiad continues to work with its customers to minimise the disruption to ongoing projects and is in the process of suppling information to, and answering queries from, the relevant authorities, such as the French Ministry of Health and Solidarity.

The Company expects there to be some exceptional legal and other costs related to this issue incurred during 2017. However, based on currently available information, the Company does not anticipate there to be a material impact on the Company's results for the 2017 financial year. Trading otherwise continues in line with management's expectations. Further details will be provided in the Company's interim results, which are due to be announced in September 2017.

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About Amiad

Amiad Water Systems (AIM: AFS) is a leading global producer of automatic, self-cleaning water treatment and filtration products and systems. Through its engineering skills and ability to innovate, Amiad provides cost-effective "green" solutions for the industrial, municipal, irrigation, oil & gas and ballast water markets. In these segments its patented products are being integrated into the core of systems for filtration and water treatment, micro irrigation and membrane protection, wastewater and potable water treatment, cooling systems and sea water filtration.

Headquartered in Israel, Amiad provides these solutions through nine subsidiaries and a comprehensive network of over 170 distributors to customers in more than 80 countries.

For additional information or product details, please visit www.amiad.com.