Further to the reports of Koor Industries Ltd. (the "Company") concerning the Company's investment in the shares of Credit Suisse Group ("Credit Suisse"), the Company hereby reports that it will record a profit of approximately NIS 108 million in the third quarter of 2008 in respect of the sale of some of its shares in Credit Suisse in the past few days. Following those sales, the Company holds approximately 5.67 million shares of Credit Suisse on the date of this report, which are approximately 0.55% of the share capital of Credit Suisse (net of treasury shares), from a cumulative investment of approximately NIS 824 million.

As the Company reported in prior reports, the Board of Directors of the Company approved, on 21 July, 2008, an investment in Credit Suisse shares in a total amount of up to NIS 3 billion. The investment will be made taking buy and sell opportunities, with due attention to the market situation and in accordance with the Company's assessments from time to time. It is emphasized that there is no certainty that such actions will be taken.

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.