ECIL Eci Telecom Ltd (MM)

TEL AVIV, Israel, June 17 /PRNewswire-FirstCall/ -- Koor Industries Ltd. (NYSE:KOR) ("Koor"), a leading Israeli holding company, announced that its affiliate (28% Holdings) ECI Telecom Ltd. ("ECI") (NASDAQ:ECIL) today announced, in response to media reports, that it is currently in discussions with a group of investors led by Swarth Investments, an investment vehicle controlled by Shaul Shani, regarding a potential acquisition of all the shares of ECI by the group for a consideration of $10.00 per share in cash. There can be no assurance at this stage as to whether this transaction will be consummated, and if consummated what the actual consideration would be. Any potential transaction would be subject to the negotiation and execution of a definitive agreement and other related agreements, as well as to regulatory and other customary approvals and conditions. ECI does not intend to make any further comment, or respond to any inquiries, until a binding agreement, if any, is reached with respect to a purchase, or talks have been terminated. Koor currently estimates, based on the current US$/NIS exchange rate and ECI's results of the first quarter of 2007, that if a transaction is consummated at the above mentioned price per share, Koor will record capital gain of approximately NIS 598 million. About Koor Industries Koor Industries is a leading Israeli holding company, focusing on high- growth, internationally-oriented, Israeli companies. Koor actively invests in agrochemicals through Makhteshim Agan Industries; in telecommunications through its holdings in ECI Telecom, ECTel and Telrad Networks; and in venture capital through Koor Corporate Venture Capital. Koor's ADSs (American Depositary Shares) are traded on the New York Stock Exchange (NYSE:KOR) and Koor's Ordinary Shares are traded on the Tel Aviv Stock Exchange (TASE:KOR). Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, international market conditions, domestic political factors, technological developments, ability to finance operations, and other factors which are detailed in the Company's SEC filings. Company Contact IR Contacts Oren Hillinger, Finance Director Ehud Helft / Kenny Green Koor Industries Ltd. GK Investor Relations Tel: 972 3 607- 5111 Tel: 1 866 704 - 6710 Fax: 972 3 607- 5110 Fax: 972 3 607 - 4711 DATASOURCE: Koor Industries CONTACT: Oren Hillinger, Finance Director of Koor Industries Ltd., 972 3 607-5111, ; IR Contacts, Ehud Helft or Kenny Green of GK Investor Relations, +1-866-704-6710, , for Koor Industries Web site: http://www.koor.com/

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