On October 2, 2013, Ariel Almog tendered his resignation as a director of Hotel Outsource Management International Inc. (HOMI), effective November 8, 2013, and notified HOMI, that he will not stand for re-election as a director. On October 2, 2013, by mutual consent of Jacob Ronnel and HOMI and its subsidiaries, it was agreed that Mr. Ronnel's management position as Chief Executive Officer and Chief Financial Officer of HOMI, and his management positions in all HOMI subsidiaries, will terminate, as of December 31, 2013. In addition, Mr. Ronnel shall resign from all director positions he currently holds with HOMI subsidiaries effective December 31, 2013.

He shall remain a director of HOMI. Mr. Ronnel's resignations are unrelated to HOMI's operations, policies or practices.