Payton Planar : Dividend Distribution

PAYTON PLANAR MAGNETICS DISTRIBUTION OF DIVIDEND ON JULY 19, 2017.

PRESS RELEASE June 05, 2017

Ness Ziona (Israel) - On June 5, 2017, the Board of Directors of Payton Planar Magnetics proposed to distribute a gross dividend of USD 0.175 per share or an aggregate amount of USD 3,092 thousands as final dividend for the year 2016.

The dividend is submitted to one single tax of 15%1 . Accordingly, the gross dividend of USD 0.175 per share leads to a net dividend of USD 0.14875 per share. The rate of the above tax deduction is with accordance to tax treaties between Israel and the country of residence of the shareholder (Belgium).

Since the company is listed on the Belgian market and the Euro is the customary currency in Belgium, the payment will be done in Euro.

The date for the reimbursement will be Wednesday, July 19, 2017. Accordingly, all holders of shares at the close of the trading hours of Euronext Brussels on record date Wednesday July 18, 2017 will be entitled to receive a dividend. The payment will be completed by the custodian financial institution on the shareholders' accounts.

For more information, please visit Payton's web site at www.paytongroup.com

or contact Michal Lichtenstein, CFO at 00- 972-3-9611164 [e-mail] or Beatrijs Wouters at 00-32-2-738-17-80 [e-mail]

About us

Payton Planar Magnetics Ltd., an Israeli-based high-tech company, designs, manufactures and markets Planetics®, its customized line of planar transformers, conventional transformers and inductors to Original

Equipment Manufacturers and their suppliers of power electronics. The group currently employs about 189 people (including executive officers). Planar Magnetic Components are used in end products in various industries, including Telecommunications, cellular infrastructure, welding machines, Military/Avionics, portable equipment and consumer goods. Planar Magnetics is a revolutionary design technology that is superior to conventional transformers and inductors, and has already been accepted by electronics design engineers as the state-of-the-art in high frequency power electronics design. Payton Planar Magnetics is a subsidiary of Payton Industries, headquartered in Israel, and has manufacturing and marketing operations in Israel, U.K. and United States. Payton Planar Magnetics is publicly traded on the Euronext stock exchange in Brussels (ticker: PAY).

1 Or any applicable tax rate, according to the tax treaty, that will be affective on the dividend payment date.