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.

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