The essence of the event: Compensation update for directors

Koor Industries Ltd. ("the Company") hereby gives notice that on 15 May, 2008. the Board of Directors resolved, pursuant to Article 14 of the Companies (Principles of compensation and expenses for an outside director) (Amendment) Regulations, 5768-2008 ("the Compensation Regulations Amendment"), to update the annual compensation and attendance compensation paid to the outside directors of the Company, so that they will be entitled to the maximum amounts under Articles 4 and 5 (respectively) of the Companies (Principles of compensation and expenses for an outside director) Regulations, 5760-2000 ("the Compensation Regulations"), as updated in the Compensation Regulations Amendment. (It is noted that prior to this resolution, the outside directors in the Company received the maximum amounts under the Compensation Regulations prior to their amendment.) Outside director Mr. Shlomo Reisman was assessed in the past by the Board of Directors of the Company as having accounting and financial expertise, and therefore he is entitled to the maximum amounts noted in the Fourth Addendum to the Compensation Regulations.

To complete the picture, it is noted that following the  resolution of the Board of Directors on 22 November, 2006 (after the approval of the Audit Committee of the Company), which was adopted pursuant to the Companies (Reliefs in transactions with interested parties) Regulations, 5760-2000, the other directors of the Company who receive annual compensation and attendance compensation from the Company, will also be entitled to the maximum updated amounts under the Compensation Regulations Amendment, so that a director who is seen as an "expert director" according to Article 1 of the Compensation Regulations Amendment, will be entitled to the maximum amounts noted in the Fourth Addendum to the Compensation Regulations, and a director who is not an "expert director" (if any such directors are serving) will be entitled to the maximum  amounts noted in the Second Addendum and the Third Addendum, as the case may be, to the Compensation Regulations.

The update of the compensation paid to the directors in the Company (including the outside directors), as noted above, will come into force commencing on the date of publication of the Compensation Regulations Amendment, i.e. commencing on 6 March, 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