Berkshire Hathaway Inc. - Iscar Ltd. Joint News Release; Berkshire Hathaway to Acquire Iscar Metalworking Companies

The Iscar Metalworking Companies is a privately held group, withoperations worldwide, and is an industry leader in the metal cuttingtools business through its Iscar, TaeguTec, Ingersoll and other IMCgroup companies. Upon completion of the transaction, Berkshire willown 80% of the business and the Wertheimer family, IMC's currentshareholders, will own the remaining 20%. The transaction remainssubject to customary closing conditions, including regulatoryapprovals.

After becoming a part of the Berkshire family of businesses, IMCwill continue to be managed by its current management team, includingChairman Eitan Wertheimer and President and Chief Executive OfficerJacob Harpaz, as well as the rest of its current worldwide managementteam. IMC will remain headquartered in Tefen, Israel, and itsworldwide business operations will continue as usual.

"We are delighted to partner with the Wertheimer family and IMC'scurrent management, led by Eitan Wertheimer and Jacob Harpaz," saidWarren Buffett, Berkshire Hathaway Chairman and Chief ExecutiveOfficer. "As a truly international business, IMC is a top performer inits industry, with exposure to European, Asian and Latin Americanmarkets, as well as significant opportunities for growth as itcontinues to penetrate the North American market. My partner, CharlieMunger, and I have been impressed by IMC's simple and profitablebusiness model. With this acquisition, we have the benefit ofinvesting in a stable business with very significant growthprospects."

"As a member of the Berkshire family we'll have the benefit of astrong platform that's committed to continuing our historicalsuccess," said Eitan Wertheimer. "This transaction is not onlysignificant for our company, our customers and our employees, but alsofor our industry, and for the State of Israel. We are gratified byBerkshire's investment in the group, and proud of what we haveachieved since Iscar's founding more than 50 years ago by my fatherStef Wertheimer, who will continue to lend his vision to the group. Weare looking forward to a long and profitable partnership withBerkshire Hathaway."

"This acquisition ties the knot between Berkshire Hathaway, one ofAmerica's outstanding businesses, and IMC, an extraordinary industrialcompany with a truly global reach, and a presence in the world's mostdynamic regions and economies," said Jacob Harpaz. "We believe thatour partnership with Berkshire will further strengthen our position inthe North American market and worldwide and allow us to continue thephenomenal growth that we have experienced over the past 50 years."

About Berkshire Hathaway

Berkshire Hathaway and its subsidiaries engage in diverse businessactivities, among which the most important is the property andcasualty insurance business conducted on both a direct and reinsurancebasis. Common stock of the company is listed on the New York StockExchange, trading symbols BRK.A and BRK.B.

About the Iscar Metalworking Companies (IMC)

The Iscar Metalworking Companies provide a comprehensive range oftools for the full scope of metalworking applications. The group isdedicated to a philosophy of continuous improvement and innovation inall facets of its operations, including manufacturing, productdevelopment, distribution, sales, and administrative functions. IMC'sproducts are manufactured in a global network of world-class,technologically advanced manufacturing campuses, the largest locatedin Tefen, Israel, and including facilities in the United States;Korea; Brazil; China; Germany; India; Italy and Japan; and soldthrough subsidiary offices and agents located in 61 major industrialcountries worldwide.

In connection with this transaction, Wachtell, Lipton, Rosen &Katz provided legal advice to the Iscar Metalworking Companies, andMunger, Tolles & Olson LLP provided legal advice to BerkshireHathaway.