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Gas Supply to Israel to Resume No Later than 4 March

Source: www.gulfoilandgas.com 2/27/2011, Location: Africa

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Ampal-American Israel Corporation, a holding company in the business of acquiring and managing interests in various businesses, announced today that it was advised by East Mediterranean Gas Co. ("EMG"), that the gas supply to EMG, and therefore to EMG's Israeli Clients, is expected to resume no later than March 4th, 2011. Ampal has a 12.5% interest in EMG.

The Egyptian National Gas Company ("EGAS") informed EMG that repair works on GASCO's (the Egyptian gas transport company) pipeline system are continuing; testing of the system will start on Monday, March 2nd, 2011; and the target date for commercial gas delivery is no later than Friday, March 4th, 2011.

This information updates Ampal's previous announcements dated February 6, 2011, February 8, 2011 and February 16, 2011. Ampal had announced that a small portion of a GASCO pipeline serving EMG was damaged as a result of an explosion and subsequent fire in a metering station along a separate GASCO owned and operated gas pipeline from Egypt to Jordan. As previously announced, neither EMG's site nor EMG's pipeline were damaged as the affected GASCO station is not a part of the EMG pipeline system and is located some 30 kilometers (about 18.6 miles) from the EMG site.

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