EMG Signs Gas Sale Agreements with Three Israeli Combined Cycle Cogeneration Plants

Oct. 19, 2009 (Business Wire) — Ampal-American Israel Corporation (Nasdaq:AMPL), a holding company in the business of acquiring and managing interests in various businesses, with emphasis in recent years on energy and related fields, announced today that it has been advised by East Mediterranean Gas Co.(“EMG”), in which Ampal has a 12.5% interest, that EMG signed three Gas Sale Agreements with respect to three combined cycle cogeneration plants with a total production capacity of 270 Megawatts. The contracts provide for gas deliveries over an 18 year contract period and have a total contract value of $1.3 Billion. Descriptions of the three contracts follow:

1. Ashdod Energy Ltd. – gas supply agreement for the cogeneration plant in the Agan Chemicals factory in Ashdod, Israel, with production capacity of 55 Megawatts and 40 tons of steam per hour.
2. Ramat Negev Energy Ltd. – gas supply agreement for the cogeneration plant in the Makhteshim Chemicals Works factory in Ramat Hovav, Israel, with production capacity of 115 Megawatts and 110 tons of steam per hour.
3. Solad Energy Ltd. – gas supply agreement for the cogeneration plant in the Solbar factory in Ashdod, Israel, with production capacity of 100 Megawatts and 90 tons of steam per hour.

These three agreements signed by EMG are joining the three previous gas sale agreements signed between EMG and the Israeli Electric Company, Dorad Energy Ltd., and Nesher.

Mr. Yosef A. Maiman, the Chairman, President and CEO of Ampal commented: “The signing of the three agreements by EMG, as well as EMG’s active and ongoing negotiations with other potential customers, including electricity producers and industrial companies, buttresses our view that EMG’s gas supply is stable and reliable and, we believe, demonstrates that the energy market in Israel, as well as the financing sources for these projects, believe in the reliability and competitiveness of EMG’s gas. EMG is working with more potential customers who desire to replace costly, polluting fuels with cleaner and cheaper natural gas, and they are turning to EMG as a solution.”

About Ampal:

Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. The Company is seeking opportunistic situations in a variety of industries, with a focus on energy and related sectors. The Company’s goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. For more information about Ampal please visit our web site at www.ampal.com.

Safe Harbor Statement

Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) and information relating to Ampal that are based on the beliefs of management of Ampal as well as assumptions made by and information currently available to the management of Ampal. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and similar expressions as they relate to Ampal or Ampal’s management, identify forward-looking statements. Such statements reflect the current views of Ampal with respect to future events or future financial performance of Ampal, the outcome of which is subject to certain risks and other factors which could cause actual results to differ materially from those anticipated by the forward-looking statements, including among others, the economic and political conditions in Israel, the Middle East, including the situation in Iraq, and the global business and economic conditions in the different sectors and markets where Ampal’s portfolio companies operate. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcome may vary from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Ampal or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Ampal’s annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. Ampal assumes no obligation to update or revise any forward-looking statements.