Makhteshim Agan Reports Agreement in Principle for Compromise Concerning Class Action Regarding the ChemChina Transaction

TEL AVIV, Israel, June 13, 2011 /PRNewswire/ –

The Makhteshim Agan Group (TASE: MAIN), the world leader in branded
off-patent crop protection solutions, today reported an agreement in
principle for compromise concerning class action regarding the ChemChina
transaction.

Pursuant to the Immediate Reports dated January 16, 2011, May 16, 2011,
May 24, 2011, June 5, 2011 and June 6, 2011, the Company announces that Koor
Industries Ltd (“Koor”) has informed the Company that:

Pursuant to the Immediate Reports of Koor in respect of the Class Action
(“the Action”), that was served against Koor and the Company in respect of
the transaction with ChemChina, and in respect of the interim ruling handed
down by the Tel-Aviv District Court on May 15, 2011, the parties to the
Action have reached an agreement in principle on a compromise concerning the
Action, whereby Koor shall pay the Company’s public shareholders that are
entitled to consideration as part of the ChemChina transaction, compensation
in the inclusive amount of USD 45 million, subject inter alia, to closure of
the ChemChina transaction and receipt by Koor of the non-recourse loan as
part thereof. Thus Koor will be responsible for an additional payment to the
party bringing the class action and its representative (subject to approval
of the court). The compromise arrangement is subject to signature of the
compromise agreement between the parties, and the procedures in this matter
as stipulated in the Class Action Law, 2006, including the court’s approval
to the agreement. There can be no certainty that the compromise will become
effective.

        Contact:

        Rony Patishi-Chillim
        Head of Global Corporate Communications
        Email: IR@ma-industries.com
        +972-73-2321119