The code runs here (R2013a,Win7) without any problems
"Warning: The encoding 'windows-1255' is not supported."   Matlab doesn't support 'windows-1255', (see fopen). Is your computer configured with 'windows-1255'?
fid = fopen( adress, 'r', 'n','windows-1250' );
"slCharacterEncoding"   is a Simulink function. AFAIK: it has nothing to do with textscan