The Company hereby notifies that its shareholder Koor Industries Ltd. ("Koor") made the following release in connection with a draft prospectus it filed with the Securities Authority:

Koor has been approached by international parties with respect to acquiring Koor's holdings in the Company.  Koor declined these approaches yet maintains contact regarding a party sharing in up to half of Koor's holdings in the Company.  At this stage, there is no certainty as to whether such contact ever results in an agreed upon transaction.