Koor Industries Ltd

of the IDB Group

Koor posts further profit in from its investment in Credit Suisse

Further to the reports of Koor Industries Ltd. ("the Company") relating to its investment in the shares of Credit Suisse Group ("Credit Suisse"), and further to prior reports of the Company (see Ref. Nos. 094521-01-2009, 098859-01-2009. 103671-01-2009 and 107202-01-2009), the Company hereby reports that in respect of additional recent sales of some of its shares in Credit Suisse, it will record additional profit of approximately NIS 177 million. This profit joins profits of approximately NIS 973 million recorded by the Company since the beginning of the second quarter of 2009 in respect of sales of Credit Suisse shares in the second quarter, and to profit of approximately NIS 608 million recorded by the Company in 2008 and in the first quarter of 2009 in respect of prior sales of Credit Suisse shares. In all, the Company has recorded a profit of NIS 1,758 million to date in respect of disposals of its shares in Credit Suisse.

At the date of this report, the Company holds 14.82 million shares of Credit Suisse, comprising about 1.25% of that Company's share capital, for a cumulative investment of approximately NIS 1.70 billion. The embodied profit to the Company at the date of this report in respect of the balance of its investment in Credit Suisse (which reflects the difference between the value of the shares it holds in Credit Suisse at their list price, which is NIS 2.63 billion, and the original cost of those shares) is approximately NIS 934million.

In view of the foregoing, in the second quarter of the year the Company will record a pre-tax profit of approximately NIS 1,150 million in respect of sales since the beginning of the second quarter, and after deduction of a proportionate part of the tax asset recorded as income in the first quarter of 2009, a net profit of approximately NIS 1,071 million.

At the date of this report, the investment framework in shares of Credit Suisse as approved by the Board of Directors of the Company is up to NIS 5 billion, and the Company intends to continue to make the investment taking buy and sell opportunities, with due attention to the market situation the Company's assessments from time to time, and maintaining the trend of continuing to be a significant shareholder in Credit Suisse. 

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.