Tower Semiconductor Ltd., an independent specialty foundry, received and accepted orders from Israeli institutional investors of approximately $15.8 million for cash investment in the company's equity.

In exchange for this cash investment, Tower has committed to issue to the investors 15.8 million ordinary shares, based on a price of NIS 3.80 per share, which is a 4% premium on the closing price of the company's ordinary shares listed on the Nasdaq stock exchange on the day the orders were accepted (September 2, 2009). In addition, Tower warranted to purchase 3.95 million ordinary shares which will have the same terms as the company's series 6 warrants already traded on the Tel Aviv Stock Exchange. Additional information regarding the terms of the offering is included in the Company's Report on Form 6-K as filed today with the SEC and available at www.sec.gov.

Total immediate proceeds amounted to approximately NIS 60 million (approximately $15.8 million). The sale of the shares and warrants is being made under the previously filed shelf registration statement as was approved and declared effective by the SEC on February 15, 2008. A prospectus supplement related to the offering will be filed with the SEC on or before September 4, 2009 and will be available at www.sec.gov.

All figures in dollars are presented herein for convenience only, based on September 2, 2009 exchange rates of 3.807 NIS for every $1.00.