1. Further to the previous reports of Koor Industries Ltd. ("the Company"), including the Company's immediate report on February 11, 2014 (Ref. 2014-01-039298) concerning court approval of the Company's application to make a distribution in accordance with section 303 of the Companies Law, 1999 ("Court Approval for a Distribution") and the Company's immediate report on March 2, 2014 (Ref. 2014-01-002280) concerning the closing of the merger transaction to which the parties are the Company, Discount Investments Ltd. (the controlling shareholder in the Company) ("DIC") and DIC Merger 2013 Ltd. ("the Merger Transaction"), the Company hereby reports that as part of the actions taken today with the closing of the Merger Transaction, the Company made a distribution of approximately NIS 2,127 million in accordance with the Court Approval for a Distribution , of which NIS 1,140 million is the amount of the consideration to the eligible shareholders and NIS 987 million is a cash dividend to DIC.

2. Following the implementation and closing of the Merger Transaction, the Company will make full early redemption of the Debentures (Series H), the Debentures (Series I).and the Debentures (Series J) of the Company on March 17, 2014, the date coordinated with the Tel Aviv Stock Exchange Ltd., and all as described in immediate reports of the Company on February 27, 2014, (Refs. 2014-01-000489, 2014-01-000492 and 2014-01-000495).


A private special purpose company wholly owned by DIC.

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