Further to the immediate report of Koor Industries Ltd. ("the Company") on 24 March, 2008 in connection with the Company's decision to make financial investments in marketable shares of European financial institutions ("the Report") and to items published today in the media, the Company gives notice as follows:

Among the European financial institutions whose shares the Company will consider buying, are a financial institution based in Switzerland and a financial institution based in England.

As noted in the Report, the Company is referring to financial investment (and not, as was stated in the media, the acquisition of control of the financial institution).

The investment bank with which the Company has entered into an agreement for the provision of a dedicated credit line is Goldman Sachs. To the extent that the Company will avail itself of this credit line, it will provide similar amounts from its own resources.