Further to the previous reports of Koor Industries Ltd. ("the Company") on July 21, (Ref. 2013-01-097911) and August 10, 2013 (Ref. 2013-01-113472), 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 on September 10 and 15, 2013 and October 13 and 31, 2013 concerning the sale of 20.5 million Credit Suisse shares (Refs. 2013-01-142284, 2013-01-145542, 2013-01-163545 and 2013-01-179760, respectively), the Company hereby reports that since that last report, the Company sold an additional 1.9 million shares of Credit Suisse in consideration (net) of approximately CHF 54.9 million. The Company expects to record a net profit of approximately NIS 4 million in its financial statements for the first quarter of 2014, in respect of these additional sales.

The Company used approximately CHF 21.8 million of the proceeds from the sale to repay part of the 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, so that the cumulative balance of the loans from these companies is now CHF 88.8 million (approximately NIS 342 million) against a lien on approximately 7.9 million Credit Suisse shares.

At the date of this report and after the aforementioned sales, the Company holds approximately 8.62 million shares of Credit Suisse, which account for about 0.54% of the issued and paid up share capital of Credit Suisse and whose value on this date is approximately CHF 249 million.

Since the change in the policy of investment in Credit Suisse shares in August 2013, the Company has sold a total of 22.43 million shares for approximately CHF 640.2 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 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 4 million. In addition, the difference between the value of the balance of Credit Suisse shares held by the Company at the date of this report and the value of the balance of Credit Suisse shares as of December 31, 2013, is positive at approximately NIS 30 million. The Company intends to continue to realize Credit Suisse shares in accordance with the policy on which it reported and subject to its terms.


distributed by