Ampal Completes Sale of Its Shares of Granite Hacarmel - Expects $20.1 Million in Proceeds.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 17, 2004

Ampal-American Israel Corporation (Nasdaq:AMPL) announced today the completion of a private sale of its remaining holdings in Granite Hacarmel Investments Ltd. to a group of institutional and other investors. The sale of 14,158,891 shares at a price of approximately $1.42 (6.30 NIS) per share is expected to result in total proceeds to Ampal of $20.1 million.

Ampal noted that the sale was initiated primarily to take advantage of favorable market conditions and in accordance with the Company's current investment policies. Ampal's investment focus is primarily on companies or ventures where Ampal can exercise significant influence and use its management's experience to enhance these investments. Ampal previously announced on July 7, 2003 the sale of 12,350,000 shares of Granite at a price of $1.40 (6 NIS).

"The successful sale of Ampal's remaining holdings of Granite is another important step in furtherance of Ampal's strategy of reducing its minority holdings and primarily focusing its management and financial resources on majority holdings in companies with strong growth profiles both in Israel and abroad" stated Jack Bigio, President and CEO of Ampal.

About Ampal

Ampal and its subsidiaries primarily acquire interests in businesses located in the State of Israel or that are Israel-related. Ampal has diversified interests in the following sectors: telecommunication, real estate, capital markets, leisure-time, high technology and other. For more information about Ampal please visit our web site at www.ampal.com.

About Granite

Granite is one of Israel's largest holding companies, Granite was established in 1981 and has been traded on the Tel Aviv Stock Exchange since 1992. Granite owns and controls Sonol, Tambour and Supergas, which are well known Israeli brand names with national marketing and distribution networks. Granite is also engaged in real estate through Granite Hacarmel Holdings and owns Allied Oils Chemicals and Granite Hacarmel Development Holdings.

Through its subsidiaries, Granite markets and distributes refined petroleum products, liquefied petroleum gas, chemicals, paints, lubricants, greases and related products, and is a leading manufacturer of sophisticated oil products as well. Granite is also engaged in water purification and desalination, oil and gas exploration, real estate investments and tourism projects.

Forward-Looking Statement 

Certain information in this press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to the Company that are based on the beliefs of management of the Company as well as assumptions made by and information currently available to the management of the Company. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions as they relate to the Company or the management of the Company, identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events or future financial performance of the Company, 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 the global business and economic conditions in the different sectors and markets where the Company'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 the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Company'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.