Koor Industries Ltd. ("the Company") hereby gives notice as follows:

Further to the decision of the Company on 24 March, 2008 to invest in marketable shares of European financial institutions in a total amount of NIS 1.5 billion, the Board of Directors of the Company resolved today to increase the amount of the investment in shares of the Credit Suisse Group to a total of NIS 3 billion. The investment will be made by taking advantage of buy and sell opportunities, with due attention to the market situation and the Company's assessments from time to time. The Company emphasizes that there is no certainty that such actions will be taken. If the Board of Directors of the Company adopts a resolution to increase the amount of the investment beyond the amount set as aforesaid, the Company will file notice accordingly.

In this context, the Board of Directors of the Company today adopted a resolution in principle concerning an offer of shares by way of a rights offering to the shareholders of the Company, of up to NIS 680 million, in accordance with a shelf offering report that will be published within a few days, based on the shelf prospectus published by the Company on 29 May, 2008. This is subject to a final decision by the Board of Directors on the matter, the approval of the Tel-Aviv stock exchange for listing the shares for trading, and such terms as will be decided upon by the Board of Directors.

The aforesaid follows immediate reports of the Company dated 1 July, 2008 and 13 July, 2008.

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