Further to previous reports of Koor Industries Ltd. ("the Company") concerning a change in the policy for investing in shares of Credit Suisse Group AG ("Credit Suisse") and the decision of the Audit Committee and the Board of Directors of the Company to work for disposal of the Company's investment in Credit Suisse shares, and further to the Company's reports concerning the sale of approximately 27.38 million Credit Suisse shares (see the report of January 15, 2014, Ref. 2013-01-015526), the Company hereby reports that since that last report, it has sold the entire balance of its holding in Credit Suisse shares - approximately 3.68 million shares - for a net sum of CHF 110.5 million. The Company expects to record a net profit of approximately NIS 27 million in its financial statements for the first quarter of 2014, in respect of these additional sales.

The Company used approximately CHF 33.2 million of the proceeds from the sale to repay the entire balance of the loans provided for the Company and which were secured with Credit Suisse shares by a company from Morgan Stanley Group and a company from Citibank Group.

Since the change in the policy of investment in Credit Suisse shares in August 2013, the Company has sold a total of 31.06 million shares for approximately CHF 897 million. In its financial statements for the fourth quarter of 2013 the Company will record a net profit, from revaluation of the investment in Credit Suisse shares held by the Company as of December 31, 2013 and from shares sold during the fourth quarter of 2013, of approximately NIS 35 million. In respect of the shares sold by the Company during the first quarter of 2014, the Company expects to record in its financial statements for the first quarter of 2014, a net profit of approximately NIS 64 million.


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