InterCure Announces Record-Breaking Second Quarter Financial Results With 4 Times YOY Revenue Growth Achieved record revenue of NIS 45 million (over CAD$17 million), an increase of 400% year-over-year and 3 7 % quarter-o

Announces Record-Breaking Second Quarter Financial Results With 4 Times YOY Revenue Growth

record revenue of NIS 45 million (over CAD$17 million), an increase of 400% year-over-year and 37% quarter-over-quarter

quarterly run-rate Q2 Pro Forma1 revenues of NIS 55 million (over CAD$21 million)

continued increase in operating profit, EBITDA2 and net profit

Q2 EBITDA margin of 26% and positive operational cash flow

growth expected to continue in the third quarter and for the remainder of 2021

Company is in the last stages of listing its ordinary shares on the NASDAQ

Canada, and Herzliya, Israel - August 16, 2021 - InterCure Ltd. (TSX: INCR.U, TASE: INCR)(dba Canndoc)(the "Company")

is pleased to announce its financial results for the second quarter of 2021 and provide a business update. All amounts are expressed

in New Israeli Shekels (NIS) or Canadian dollars ($), unless otherwise noted.

Quarter 2021 Key Financial & Operating Highlights

Includes estimated revenues of all InterCure's consolidated operations for the entire quarterly period.

This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see "Non-IFRS Measures"

continue to execute our profitable growth strategy while strengthening InterCure's brands, manufacturing and distribution leadership"

said InterCure CEO Alexander Rabinovich, adding "we achieved during this quarter unmatched results with some of the strongest

revenue growth rates and EBIDTA margin in the sector. Our leadership position in Israel, the leading GMP market, alongside our global

expansion creates visible momentum for continued near and long-term profitable growth, generating value for shareholders and relief for

patient communities."

second quarter of 2021 is InterCure's sixth consecutive quarter with quarter-to-quarter high double-digit growth and fourth consecutive

quarter with positive cash flow from operations" said InterCure CFO Amos Cohen, adding "maintaining sound financial

discipline and a strong balance sheet are key in strengthening our position leading the consolidation process outside North America."

Q2 2021 Financial Highlights - Cannabis Sector

Quarter 2021 Results

Company reported second quarter 2021 revenue of NIS 45 million ($17 million), an increase of four times compared to revenue of NIS 11

million in the prior year period and up 37% sequentially compared to the first quarter of 2021. Estimated revenue represents an annual

run rate of NIS 180 million (over $70 million). Pro Forma second quarter revenues on a full quarterly operating basis of NIS 55 million

(over $21 million), representing a run rate of NIS 220 million ($86 million).

continued to grow its market share with strong demand for Canndoc's branded products, expansion of its medical cannabis dispensing

operation and continued improvement across all facets of the business, including same store sales (SSS) increase.

the time of this report, InterCure launched its Lemonade medical cannabis approved pharmacy in Jerusalem, the first Lemonade

retail location outside of the US. In addition, it added two more medical cannabis licensed pharmacies to its leading pharmacy chain

- Givol , bringing the total number of medical cannabis approved retail locations to eight. The expansion is expected to

continue and accelerate during the third quarter and throughout the remainder of 2021.

Company continued to generate increases in operating profit, EBITDA and net profit during the second quarter of 2021, reflecting InterCure's

market leadership, scale and operational excellence.

the second quarter the southern facility, largest and most advanced in Israel, successfully ramped up its cultivation capacity to meet

the growing demand for InterCure's GMP products. To continue supplying the solid demand, the Company is considering accelerating

production and development plans of its southern cultivation site.

the quarter, the Company successfully launched new branded products, including the first ever Cookies GMP premium products, setting

new standards of quality. These were exclusively cultivated and manufactured in the Company's advanced southern facility as part

of the strategic partnership with Cookies .

late June 2021, the Company was one of the first and only Israeli licensed producers to meet the new standards set by the IMCA (Act 109)

and successfully resumed importation of medical cannabis from its exclusive strategic partner Tilray. Importation is expected to continue

and accelerate throughout the third quarter and the rest of 2021.

of adult cannabis use progresses, for the first time in Israel's history cannabis reform was part of the new government's

coalition agreements. Since the new parliament was assembled in June, both coalition and opposition parties put forward bills for adult

cannabis use with minor differences. InterCure remains committed to lead this upcoming new market once the legislations pass.

expected reform is the completion of de-listing CBD from the Dangerous Drugs Act. With the formation of a new government, this process

is expected to continue and come to completion. During the quarter, InterCure has laid infrastructure with our strategic partner Charlotte's

Web , a global leader, and is prepared for the launching of this new segment.

new Minister of Economy also enacted an ease on exporting GMP grade medical cannabis and CBD products from Israel. Combined with solid

international demand for InterCure's GMP branded products, the new regulations are expected to boost the Company's global

expansion. InterCure's leadership and brand equity in international target markets, including Europe, position the Company for

long term growth in these emerging markets.

Company is in advanced stages of completing an acquisition and merger of Israeli medical cannabis licensed producer Better'.

The integration with Better is expected to increase InterCure's market share and further strengthen its leadership position within

the pharmaceutical cannabis market.

April 20, 2021, InterCure applied to list its shares on The Nasdaq Capital Market ("Nasdaq") and has filed a registration

statement with the SEC to register its shares under the Exchange Act of 1934, a prerequisite to listing on Nasdaq. The Company is in

the last stages of listing its ordinary shares on the NASDAQ exchange under the symbol "INCR".

Financial Statements and Management's Discussion and Analysis InterCure's unaudited financial statements and

accompanying notes for the three and six month periods ended June 30, 2021 and related management's discussion and analysis of

financial condition and results of operations ("MD&A") are available under the Company's profile on

InterCure (dba Canndoc)

(dba Canndoc) (TSX:INCR.U, TASE:INCR) is the leading, fastest growing and the most profitable Israeli cannabis company. Canndoc, a wholly

owned subsidiary of InterCure, is Israel's largest licensed cannabis producer and one of the first to offer Good Manufacturing

Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market leading distribution network,

best in class international partnerships and a high-margin vertically integrated "seed-to-sale" model to be the most profitable

cannabis company globally outside of North America.

is listed on the Toronto Stock Exchange under the symbol INCR.U and trades on the Tel Aviv Stock Exchange under the symbol INCR.TA.

more information, visit: http://www.intercure.co

press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before

interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense,

impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This measure is not a recognized

measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures

presented by other companies. InterCure's method of calculating this measure may differ from methods used by other entities and

accordingly, this measure may not be comparable to similarly titled measured used by other entities or in other jurisdictions. InterCure

uses this measure because it believes it provides useful information to both management and investors with respect to the operating and

financial performance of the company. A reconciliation of Adjusted EBITDA to an IFRS measure (revenue), which is incorporated by reference

to this press release, is available in Intercure's MD&A for the period under the heading "Results of Operation",

available under the Company's profile on SEDAR at www.sedar.com.

press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects InterCure's

current expectations regarding future events. The words "will", "expects", "intends" and similar

expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying

words. Specific forward-looking information contained in this press release includes, but is not limited to: the Company's future

revenue growth and results, its ability to list its shares on the Nasdaq, the success of the acquisition of Better and the future outcomes

of the acquisition, the legalization of recreational cannabis in Israel, the success of its global expansion plans, its continued growth,

the expected operations, financial results business strategy, competitive strengths, goals and expansion and growth plans and the expansion

strategy to major markets worldwide. Forward-looking information is based on a number of assumptions and is subject to a number of risks

and uncertainties, many of which are beyond InterCure's control, which could cause actual results and events to differ materially

from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited

to: changes in general economic, business and political conditions, changes in applicable laws, the Canadian regulatory landscapes and

enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment

of senior management, as well as the factors discussed under the heading "Risk Factors" in Subversive Acquisition LP's

final long form prospectus dated March 15, 2021, which is available on SEDAR at www.sedar.com. InterCure undertakes no obligation to