Court ruling on IDB Holding Ltd.

Further to section 3.6 in Part A of the Periodic Report of Koor Industries Ltd. ("the Company") for 2012 and section 5.7 in Part A of the third quarter report of the Company for 2013, and further to the Company's report of December 18, 2013 on the matter in reference, the Company hereby reports that IDB Holdings reported on a supplementary decision given on January 5, 2014 by the Tel Aviv District Court in connection with a composition of creditors of IDB Holdings as proposed jointly by the groups controlled by Messrs. Edouardo Elsztain and Mordechai Ben-Moshe ("the Composition of Creditors"), which determined, inter alia, that the prior decision of the court concerning approval of the Composition of Creditors (on which the Company reported on December 18, 2013) would now come into force; Messrs. Eyal Gabbai and Adv. Hagi Ullman are appointed as trustees for implementation of the Composition of Creditors and are granted, inter alia, the authority to seize all the assets of IDB Holding, including all its holdings in its wholly-owned subsidiary IDB Development Ltd., the parent of the controlling shareholder in the Company, Discount Investments Ltd.


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