Metalink Plans to Distribute Cash to Shareholders

TEL-AVIV, Israel, August 29, 2016

Metalink Ltd. (OTCQB: MTLK), today announced that its Board of Directors has approved a plan to distribute up to $3.5 million in cash to shareholders.

The distribution, which is expected to be conducted through a repurchase of shares from Metalink shareholders by means of a self tender offer and/or a cash dividend, is subject to the satisfaction of certain conditions, including the approval of the Tel Aviv District Court. To that end, Metalink intends to file an application to the court seeking the court's approval for distribution of up to $3.5 million by means of a repurchase of shares from Metalink shareholders and/or cash distribution.

Subject to the satisfaction of the requisite conditions, Metalink expects to announce the final size of the distribution and the manner in which it shall be conducted (including the allocation, if any, between a self tender offer and cash dividend) in the next couple of months. If and when applicable, Metalink will also issue a press release announcing the commencement of the self tender offer, the size thereof, the offer price and additional details regarding the offer.

There can be no assurance, however, if and when the conditions to the distribution will be satisfied nor as to the final size thereof (which may be below the requested court approval of $3.5 million), timing and terms thereof, including the allocation, if any, between a self tender offer and cash dividend and, with respect to a self tender offer, the final size and offer price thereof.

This is not an offer to buy or the solicitation of an offer to sell any ordinary shares. The possible tender offer that is described in this press release has not yet commenced. Once a tender offer commences, Metalink will file a tender offer statement (including an offer to purchase, letter of transmittal and related tender offer documents) with the Securities and Exchange Commission (SEC). Shareholders should read the tender offer statement when it becomes available because it will contain important information about the offer. The tender offer statements and other filed documents will be available at no charge on the SEC's website at http://www.sec.gov  and will also be made available without charge to all shareholders by contacting Metalink's corporate secretary at 972-77-7706770. Shareholders are urged to read these materials carefully before making any decision with respect to any tender offer.

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