Ampal-American Israel Corporation announces developments regarding its controlling shareholder.

NEW YORK--(BUSINESS WIRE)--Feb. 21, 1996--Ampal-American Israel Corporation (AMEX:AIS.A) announced today that the Board of Directors of its controlling shareholder, Bank Hapoalim B.M., has authorized the Bank's management to conduct negotiations with Benjamin and Daniel Steinmetz in order to reach an agreement regarding the sale to the Steinmetz family of Ampal Class A Stock at a price that reflects a valuation of Ampal which exceeds its current market value.

This transaction is contemplated to assist the Bank in decreasing its holdings in Ampal to 25% or less by December 31, 1996, as required by Israeli law.

In addition, the Bank has advised Ampal of its desire to enter into a transaction with Ampal to equalize the rights of Ampal's Common Stock (100%-owned by Bank Hapoalim) to those of its publicly owned Class A Stock. The Common Stock, voting as a class is entitled to cast as many votes as are cast by the Class A Stock, except as to the election of 25% of the Board of Directors. Ampal has formed a special committee, consisting of outside directors, to consider Bank Hapoalim's request, and to negotiate, approve or disapprove any such transaction on Ampal's behalf.

In connection with these developments, management of Ampal has temporarily suspended purchases of Class A Stock pursuant to Ampal's previously announced stock repurchase program.

Ampal and its subsidiaries 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 growth in Israel's domestic economy. Ampal and its subsidiaries have diversified interests in the following sectors: hotels and leisure-time, real estate, energy distribution, basic industry, high technology and communications, as well as others.

CONTACT: Lawrence Lefkowitz

President

[phone]