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

The Company has reached agreement with Morgan Stanley whereby the non-recourse credit facility made available to it by Morgan Stanley will be doubled, so that the maximum amount will be CHF 330 million ("the Facility Ceiling"), in such a way that the original credit facility of CHF 165 million will be added to an additional facility of CHF 165 million.

The Facility Ceiling will be set on dates as determined by the agreement between the parties, according to the maximum amount actually withdrawn by the Company up to those dates.