Further to the reports of Koor Industries Ltd. ("the Company") concerning the approval given by its Board of Directors for its management to make financial investments of up to NIS 1.5 billion in shares of European financial institutions, and further to the details on this matter which were included in the Company's prospectus dated May 29th, 2008, the Company hereby reports as follows:

At the date of this report, the Company has purchased approximately SF 100 million (NIS 330 million) of shares of Credit Suisse Group.

The Company may purchase additional shares from time to time, up to a total of NIS 1.5 billion as decided by its Board of Directors, and also may sell shares it has purchased, inter alia, in accordance with the assessments of the Company's management with regard to market developments. Nevertheless, the Company emphasizes that there is no certainty that such actions will be taken.

Should the Board of Directors of the Company decide to increase the scope of the investment beyond the amount decided by the Board, the Company will report accordingly.