Ampal Announces Purchase of the Israel Corporation's Holdings in Am-Hal Ltd. - The Senior Citizen Facilities Holding Company for $6 Million.

Business Editors

NEW YORK--(BUSINESS WIRE)--January 3, 2000

Ampal-American Israel Corporation (AMEX:AIS) announced today that on December 31, 1999 its wholly-owned Israeli subsidiary invested $6 million for a 50% equity interest in Am-Hal Ltd. ("Am-Hal"). Upon completion of the transaction, which is subject to the approval of the relevant authorities, Ampal will hold 100% of Am-Hal, the owner and manager of the "Ad - 120" chain of luxury senior citizen facilities in Israel.

The chain includes an existing facility in Rishon Le'Zion, Israel, which has 160 apartments and two geriatric wards totaling 80 beds, and a new facility in Hod Hasharon, Israel, which is in the last stage of construction, and will be the most luxurious, innovative senior citizen facility in Israel. The center will include 244 luxury apartments, an upscale geriatric ward, public areas, a swimming pool and spa, and is located in the center of an exclusive residential area, adjacent to a shopping mall and country club.

The investment was made in accordance with Ampal's investment strategy, which has recently included the sale of its interest in Moriah Hotels Ltd. and Paradise Industries Ltd. Ampal focuses its activity mainly in the fields of high-technology, real estate and capital markets.

Ampal and its subsidiaries primarily acquire interests in businesses located in the State of Israel or that are Israel-related. An important objective of Ampal is to make investments in companies, which take advantage of the growth in Israel's high-technology sector. Ampal and its subsidiaries have diversified interests in the following sectors: high-technology and communications, real estate, leisure- time, energy distribution, and industry.