The board of directors of Medigus Ltd., or the company, has resolved to adopt the corporate governance exemption set in Regulation 5D of the Israeli Companies Regulations (Reliefs for Public Companies whose Shares are Listed on a Stock Exchange Outside of Israel), 2000, or the Regulation. Effective as of June 28, 2017, and its adoption of the exemption under the Regulation, its external directors in office, Ms. Efrat Venkert and Mr. Eitan Machover, are no longer classified as such under the Israeli Companies Law.  The transition rules set in the Regulation provide that such directors have the right to remain in office as its directors at their option after the exemption under the Regulation are adopted until the earlier of such directors’ original end of term of office or the second annual meeting of shareholders after the adoption of the exemption under the Regulation, which in the case of Ms. Efrat Venkert and Mr. Eitan Machover is until the date of its annual meeting of shareholders in 2018. In addition, in order to comply with the requirement of a majority of independent directors, Ms. Anat Naschitz has stepped down from its board of directors effective June 28, 2017. Ms. Anat Naschitz’s resignation is solely connected with the company’s adoption of the aforementioned exemption and not due to any disagreements or other company-related issues.