TowerJazz sells its holdings in HHSL

Russell Ellwanger, TowerJazz CEO, commented: "This transaction is another step in our business growth strategy, providing us with additional cash which may enable us to fund our continued growth initiatives. Our relationship and supply agreement with HHSL and its wholly owned subsidiary HHNEC are independent of an equity position.” The transaction is subject to customary closing conditions and is expected to close during the third quarter of 2011. TowerJazz expects to record a gross gain in the third quarter of USD 15 million as a direct result of this sale, and approximately USD 8 million of net gain (after taking into account expected tax and other payments and fees associated with the transaction).