Ampal Intends to Pay the Upcoming Interest Payments Due on its Series A and Series B Debentures Subject to Approval of the Upcoming Vote on the Proposed Term Sheet

TEL AVIV, Israel, July 30, 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 announcement dated July 17, 2012, as follows:

1. In accordance with Ampal's previously disclosed proposed term sheet (the "Proposed Term Sheet") presented to a meeting of the holders of its Series A, Series B and Series C Debentures (the "Debentures") held on July 18, 2012, and which was amended on July 30, 2012, Ampal announced that it intended to postpone making the principal payments currently coming due on the Debentures, but intended to continue making interest payments as scheduled.
2. On July 31, 2012, interest payments are due to the Series A and Series B Debenture holders (the "Upcoming Interest Payments").
3. On August 1, 2012, the Debenture holders are scheduled to vote by ballot on a resolution to indicatively accept the Proposed Term Sheet.
4. Should the Series B Debenture holders vote not to accept the Proposed Term Sheet, the previous decision of the Series B Debenture holders to accelerate Ampal's entire debt under the Series B Debentures and set it to immediate repayment will become effective immediately.
5. Due to the timing of the pending vote that as noted will occur after July 31, 2012, Ampal's Board of Directors has decided today that the Upcoming Interest Payments will be made immediately after it is clear that the Debenture holders have approved moving forward with continuing negotiations with Ampal by voting to accept the Proposed Term Sheet.

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.