Further to an immediate report of the Company dated 24.6.08, it is hereby reported that IDB Development Ltd. and Discount Investments Ltd. (the "Controlling Shareholders"), have notified the Company as follows:

Representatives of the Controlling Shareholders met today with the foreign entity who expressed an interest in acquiring control in the Company. At the end of the meeting, the Controlling Shareholders decided not to open negotiations with the foreign entity.

This is a free translation to English from the Hebrew language, which was made for convenience purposes only. The official document is in Hebrew, and it can be found at the web site of the Tel Aviv Stock Exchange, at: http://maya.tase.co.il.

About Koor Industries Koor Industries is a leading Israeli holding company, focusing on high-growth, internationally-oriented, Israeli companies. Koor actively invests in agrochemicals through; Makhteshim Agan Industries , in telecommunications through its holdings in  ECTel and Telrad Networks; and in venture capital through Koor Corporate Venture Capital. Koor’s Ordinary Shares are traded on the Tel Aviv Stock Exchange (TASE: KOR).    Company contact   Oren Hillinger, Finance Director   Koor Industries Ltd.   Tel:  972 3  607- 5111   Fax: 972 3  607- 5110   oren.hillinger@koor.com