Ampal-American Israel Corporation (Nasdaq: AMPL) announced today that it has completed the sale of its indirect wholly owned subsidiary, 012 Smile Telecom Ltd. ("012 Smile") to Partner Communications Company Ltd. (NASDAQ: PTNR) ("Partner").

Excluding bank debt, the purchase price was valued at approximately 690 million New Israeli Shekels ("NIS"), or $190 million, of which approximately NIS 40 million, or $11 million, was paid and is to be paid by third party payments to 012 Smile, and assigned to Ampal. As part of the transaction closing, Partner has assumed approximately NIS 0.8 billion, or $220 million, of bank debt, bringing the total transaction value to approximately NIS 1.49 billion, or $400 million.

Ampal will record a gain before tax of approximately 220 Million NIS, or $60 Million as a result of the sale. The aforesaid gain will be recognized partially on December 31, 2010 and partially on March 31, 2011.

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

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 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.

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