TEL AVIV Israel Jan. 29 /PRNewswire-FirstCall/ -- Koor Industries (NYSE: KOR) ("Koor") a leading Israeli investment holding company announced that it has signed an agreement (the "Agreement") to acquire 50% joint-control of Epsilon Investment House ("Epsilon" or the "Company") for NIS 105 million (approx. $22m); Approx. half this amount will be injected into the company the other half will be used to acquire shares from the current founders and managers -- Shmuel Frenkel and Ron Levkovich (the "Founders"). The transaction will be conducted based on a pre-money company value of NIS 160 million (approx. $35m). Following the transaction Koor will hold 50% in Epsilon and the remaining 50% will be held by the company's Founders.

Epsilon Investment House is an Israeli boutique investment house offering a full range of financial services including -- portfolio management mutual funds' management provident fund management underwriting and hedge fund management. Established in 1988 Epsilon currently has NIS 4.5 billion (approx. $1 billion) Assets under Management (AuM). Throughout 2005 the company generated substantial growth in its AuM with the mutual fund management increasing by 100% with several of the company's mutual funds being ranked among the top performers in their fields during 2005.

As part of the Agreement Koor will receive the right to nominate 50% of the Board of Directors (3 Board members). The company's Founders committed to continue to manage the company for the next few years. The Agreement is subject to the applicable regulatory approvals and is expected to close within 60 days.