Magal Receives a Letter of Support from its Principal Shareholder
Natie Kirsh Offers a $5 Million Bridge Financing in Anticipation of Proposed Rights Offering;
Loan Contingent on Maintaining Current Board and Chairman
YEHUD, Israel - July 12, 2010 - Magal Security Systems Ltd. (NASDAQ GM: MAGS; TASE:
MAGS) , disclosed today that it has received a letter from its principal shareholder, Mr. Natie Kirsh, in which he
notified Magal that he has sent a letter to the shareholders of the Company in which he has indicated unequivocal
support for the Company’s current Board of Directors and Chairman. The letter also states that Mr. Kirsh is
against the current initiative of certain shareholders to elect a new Board of Directors and Chairman. In his letter,
Mr. Kirsch confirms his support for a proposed rights offering that will provide the Company with additional
capital and will enable management to fully implement its recently announced strategic plan. Mr. Kirsh also
advised that he has offered to extend a bridge loan of $5 million in anticipation of such offering, contingent on the
current Board of Directors remaining in place.
The full text of Mr. Kirsh’s letter follows:
“In the light of the attempt by Mr. Yoav Stern and certain shareholders to initiate a change in the
composition of the Board of Directors, I write to you as a fellow shareholder to provide some
background and to share with you my views on the company’s present situation.
“About 30 years ago I acquired a majority interest in the company, purchasing 74% of the outstanding
shares from Israel Aircraft Industries.
“I immediately invited Mr. Kobi Even Ezra, a well regarded Israeli businessman to become both the
Chairman and a significant shareholder, and under Kobi’s stewardship the Company went public. On
reaching the age of 75, Kobi decided to step down as Chairman of the Board and Mr. Jacob Perry took
on this role.
“It was and remains my view that Mr. Perry is ideally suited to fill this role and I have g