Demand of NIS 1.2 Billion (approx. $270 m) in the Institutional Investor Stage TEL AVIV, Israel, August 10 /PRNewswire-FirstCall/ -- Koor Industries Ltd. (NYSE:KOR) ("Koor", "Company") a leading Israeli holding company announced today that following its announcement from August 1, 2006, the company completed today the stage of the institutional investor tender ("Institutional Tender Stage") of the debenture issuance. During the Institutional Tender Stage the Company received early commitment offers for the purchase of 1,200,000 units, for a total face value of NIS 1.2 billion (approx. $270 million), representing an oversubscription of 3 times the initial amount offered, 400,000 units. Following the Institutional Tender Stage the company accepted orders for 480,000 units with a total face value of NIS 480 million (approx. $110 million). The interest rate, linked to the Israeli Consumer Price Index ("CPI"), determined following the Institutional Tender Stage amounted to 5.1%. The Company intends to offer a total of 600,000 units, including the 480,000 issued to the institutional investors, each unit NIS 1,000 par value, for a total face value of NIS 1,000 per unit, based on an interest rate, linked to the CPI, determined by means of tender, but which will not be lower than 5%, and which will not exceed 5.1%. The interest rate of the debentures will be determined based on the result of the public tender which will take place after publication of the prospectus. The debentures to be offered have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons, absent registration or an applicable exemption from registration requirements. About Koor Industries Koor Industries is a leading Israeli holding company, focusing on high-growth, internationally-oriented, Israeli companies. Koor actively invests in agrochemicals through Makhteshim Agan Industries (TASE:MAIN); in telecommunications through its holdings in ECI Telecom (NASDAQ:ECIL) and Telrad Networks; in defense electronics through Elbit Systems (NASDAQ:ESLT); and in start-ups through Koor Corporate Venture Capital. Koor's ADSs (American Depositary Shares) are traded on the New York Stock Exchange (NYSE: KOR) and Koor's Ordinary Shares are traded on the Tel Aviv Stock Exchange (TASE:KOR). For further information, please contact: Ran Maidan - Senior Vice President and CFO Koor Industries Ltd. +972-3-9008-310 Or Fiona Darmon - Vice President, Investor Relations Koor Industries Ltd. +972-3-9008-417 Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, international market conditions, domestic political factors, technological developments, ability to finance operations, and other factors which are detailed in the Company's SEC filings. DATASOURCE: Koor Industries Ltd CONTACT: For further information, please contact: Ran Maidan - Senior Vice President and CFO, Koor Industries Ltd., +972-3-9008-310 Or Fiona Darmon - Vice President, Investor Relations, Koor Industries Ltd., +972-3-9008-417

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