Immediate report of IDB Development Ltd.

Following items in the media and the reports of Koor Industries Ltd. ("the Company") concerning a review of structural changes in IDB Group, published on October 24, 2012 (Ref. 2012-01-263064) and on December 1, 2012 (Ref. 2012-01-297420), and in Note 1 to the financial statements of the Company for the third quarter of 2012, the Company gives notice that IDB Development Ltd., the controlling shareholder in the Company ("IDB Development"), reported today that it is conducting a preliminary review of a business move in which some or all of its holdings in Clal Insurance Holdings Ltd. will be sold to the Company.

It is clarified and emphasized, as reported by IDB Development, that the details of the abovementioned move have not yet been worked out and have not yet been discussed by the competent organs at IDB Development or by the competent organs of the Company. Implementation of the move, if and to the extent it is implemented, will be subject to various approvals of regulatory bodies, financing entities and those required under the Companies Law, 1999, including pursuant to Section 275 of that law, and that at this stage it is not certain that the move will in fact be implemented.

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