Ampal-American Israel Corporation and Israel Infrastructure Fund Establish a Joint Venture with Institutional Investors in Israel to hold Interests in EMG.

TEL AVIV, Israel -- Ampal-American Israel Corporation (Nasdaq:AMPL) and Israel Infrastructure Fund ("IIF"), leading a group of institutional investors, announced the closing of a joint venture to invest in East Mediterranean Gas. Co. (S.A.E.), an Egyptian corporation ("EMG"). Ampal and the institutional investors will each hold a 50% interest in the joint venture. The formation of the joint venture was announced on June 7, 2007.

The joint venture is a newly formed Israeli limited partnership, "Merhav Ampal Energy Holdings, LP" whose general partner is an Israeli company equally owned by Merhav Ampal Energy Ltd. (a wholly owned subsidiary of Ampal) and IIF. IIF, leading the group of institutional investors in the joint venture, is a private equity fund specializing in investment opportunities in infrastructure projects.

EMG is an Egyptian joint stock company that has been given the right to export natural gas from Egypt to Israel and other locations in the East Mediterranean basin including via an underwater pipeline. The pipeline, which EMG expects to be completed during the first quarter of 2008, will run from El-Arish, Egypt to Ashkelon, Israel.

At closing, the joint venture purchased a 4.3% interest in EMG from Merhav (m.n.f) Ltd. ("Merhav") for a purchase price of approximately $95,355,000, using funds provided by the institutional investors. This represents the same purchase price (on a per share basis) paid by Ampal for its December 2006 purchase of EMG shares.

In addition to the joint venture's purchase from Merhav, Ampal contributed, at closing, a 4.3% interest in EMG into the joint venture, which will hold a total of 8.6% of the outstanding shares of EMG. Ampal's contribution is being valued at the same price per EMG share as the joint venture's purchase from Merhav.

After closing, Ampal's beneficial interest in EMG remained 12.5% of the outstanding shares of EMG, with 8.2% held directly and 4.3% held by through the joint venture.

Yosef A. Maiman, the Chairman, President and CEO of the Company and a member of the controlling shareholder group of the Company, is the sole owner of Merhav. After this transaction, Merhav continues to hold 8.2% of EMG.

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: Energy, Real Estate and others. For more information about Ampal please visit our web site at www.ampal.com.

About Israel Infrastructure Fund

IIF is a private equity fund specializing in investment opportunities in infrastructure projects with the potential to generate significant interest and dividend income and capital appreciation. IIF has diversified interests in the following sectors: Energy, Water, Environment, Transport and others. For more information about IIF please visit our web site at www.iif.co.il

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