Further to the reports of Koor Industries Ltd. ("the Company") relating to its investment in the shares of Credit Suisse Group ("Credit Suisse"), the Company hereby reports as follows:

On 13 October, 2008, after obtaining the approval of its Board of Directors, the Company signed an agreement with Credit Suisse, in Zurich, whereby the Company will invest approximately SF 1.2 billion in Credit Suisse. The transaction was closed by way of purchasing 34,000,000 shares of Credit Suisse's ordinary shares (out of its Treasury stock), which constitute, immediately after the purchase, about 3% of the share capital of Credit Suisse, at SF 35 per share. The price was determined with due attention to the closing price of the Credit Suisse share on the New York Stock Exchange on 10 October, 2008. Transfer of the shares and payment of the consideration will be on 21 October, 2008. The purchase was financed mainly from the Company's own resources.