Ampal to Postpone the Upcoming Interest Payment Due on its Series C Debentures if Series B Debenture Holders Accelerate Debt

Tel-Aviv, Israel, March 5, 2012 (GLOBE NEWSWIRE) -- Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company in the business of acquiring and managing interests in various businesses, announced today, following its previous announcements dated January 18, 2012 and January 22, 2012, as follows:

1. In accordance with Ampal’s proposal presented to a meeting of the holders of its Series A, Series B and Series C Debentures (the "Debentures") held on January 1, 2012, Ampal announced on January 22, 2012 that it would postpone making the principal payments currently coming due on the Debentures, but continue making interest payments as scheduled.
2. On March 7, 2012, an interest payment is due to be paid to the Series C Debenture holders (the "Series C Interest Payment").
3. On March 4, 2012, the holders of the Series B debentures (the "Series B Debentures") voted by ballot on a resolution to accelerate the debt and set it to immediate repayment (the "Series B Resolution"), along with certain other resolutions. The result of the vote has not been announced yet. The Series B Resolution, if approved, will be effective two weeks from the date of the announcement of the results of the vote. The Series B Debenture holders’ committee, formed by the Series B Debenture holders (the "Series B Committee"), will have the authority to postpone the effective date of the Series B Resolution by an additional two weeks, should the Series B Committee find that sufficient progress was made in the negotiations with Ampal and/or with its controlling shareholder.
4. Since the results of the vote on the Series B Resolution have not been announced yet, Ampal’s Board of Directors decided today that Ampal intends to make the Series C Interest Payment, if the Series B Resolution is not approved. The Board further decided that if the Series B Resolution is approved, the Series C Interest Payment will be postponed until it is clear to Ampal if the Series B Resolution to accelerate the entire debt to the Series B Debenture holders and set it to immediate payment will be implemented or not.

The Debentures are listed on the Tel Aviv Stock Exchange. The Debentures' offering was made solely to certain non-U.S. institutional investors in accordance with Regulation S under the U.S. Securities Act of 1933, as amended. The Debentures have not been and will not be registered under the U.S. securities laws, or any state securities laws, and may not be offered or sold in the United States or to United States persons without registration unless an exemption from such registration is available. This notice does not constitute an offer to sell the Debentures nor is it a solicitation for an offer to purchase the Debentures. Further, this press release shall not constitute any offer, solicitation or sale of any of the Debentures in any jurisdiction in which such offering sold would be unlawful.

About Ampal:

Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. Ampal is seeking opportunistic situations in a variety of industries, with a focus on energy, chemicals and related sectors. Ampal’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 Egypt, 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.