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Merger of Semiconductor Manufacturers Proceeding as Planned

Tower Semiconductor, Ltd. , an independent specialty foundry, and Jazz Technologies , a leader in Analog-Intensive Mixed Signal (AIMS) foundry solutions, today announced that their previously announced proposed merger is progressing toward timely closing, currently expected in September 2008.

Tower's registration statement on Form F-4, containing information relating to its proposed merger with Jazz, was declared effective by the Securities and Exchange Commission, clearing the way for a Jazz stockholder vote on the merger. Jazz has set September 17, 2008 as the date for the special meeting of its stockholders to vote on the proposal to approve and adopt the Agreement and Plan of Merger and Reorganization with Tower Semiconductor, to be followed by the closing of the merger. Jazz expects to mail to its stockholders this week the special meeting proxy statement contained in Tower’s registration statement.

The merger is subject to customary closing conditions, including the approval of majority of Jazz’s common stock outstanding as of the close of business on August 8, 2008.

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