TowerJazz Announces Receipt of $25 Million of Binding Orders From Institutional Investors to Expand its Existing Series F Bonds

      TowerJazz Announces Receipt of $25 Million of Binding Orders From
  Institutional Investors to Expand its Existing Series F Bonds in a Private

PR Newswire

MIGDAL HA'EMEK, Israel, October 23, 2012

MIGDAL HA'EMEK, Israel, October 23, 2012 /PRNewswire/ --

TowerJazz, the global specialty foundry leader, announced today that it
received binding orders from Israeli institutional investors for approximately
$25 million (approximately NIS95 million) through a private offering for the
expansion of its existing Series F bonds, originally issued in 2010, maturing
in two equal installments in December 2015 and December 2016. The newly
issued Series F bonds will form a single series together with the currently
outstanding Series F bonds.

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Each bond was priced in the offering at NIS 0.925, reflecting a two percent
discount to its closing price of NIS 0.947 on the TASE on October 22, 2012.
The bonds carry an interest rate of 7.8 percent per annum and may be converted
into ordinary shares at a conversion ratio of NIS 38.21 par value
(approximately $10) of bonds to one ordinary share, reflecting a 20% premium
over the company's closing price on NASDAQ on October 22, 2012. The issuance
of the bonds is subject to the receipt of the approval of the TASE for the
listing of the bonds for trade on the TASE. To the extent issued, the sale
and/or transfer of the bonds are subject to the limitations on resale of
securities set forth in the Israeli Securities Law of 1968 and the regulations
promulgated thereunder applicable to private placements, including a
restriction on resales during the first six months, and limited resales

The Series F Bonds are being offered in Israel only, and are not registered
under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and
may not be offered or sold in the United States or to U.S. Persons (as defined
in Regulation "S" promulgated under the Securities Act) without registration
under the Securities Act or an exemption from the registration requirements of
the Securities Act.

This press release shall not be deemed to be an offer to sell or a
solicitation of an offer to buy any of the securities.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the global specialty
foundry leader, its fully owned U.S. subsidiary Jazz Semiconductor Ltd., and
its fully owned Japanese subsidiary TowerJazz Japan, LTD, operate collectively
under the brand name TowerJazz, manufacturing integrated circuits with
geometries ranging from 1.0 to 0.13-micron. TowerJazz provides industry
leading design enablement tools to allow complex designs to be achieved
quickly and more accurately and offers a broad range of customizable process
technologies including SiGe, BiCMOS, Mixed-Signal and RFCMOS, CMOS Image
Sensor, Power Management (BCD), and Non-Volatile Memory (NVM) as well as MEMS
capabilities. To provide multi-fab sourcing, TowerJazz maintains two
manufacturing facilities in Israel, one in the U.S., and one in Japan with
additional capacity available in China through manufacturing partnerships. For
more information, please visit

Safe Harbor Regarding Forward-Looking Statements

This press release includes forward-looking statements, which are subject to
risks and uncertainties. Actual results may vary from those projected or
implied by such forward-looking statements. A complete discussion of risks
and uncertainties that may affect the accuracy of forward-looking statements
included in this press release or which may otherwise affect Tower and/or
Jazz's business is included under the heading "Risk Factors" in Tower's most
recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the
Securities and Exchange Commission (the "SEC") and the Israel Securities
Authority and Jazz's most recent filings on Forms 10-K and 10-Q, as were filed
with the SEC, respectively. Tower and Jazz do not intend to update, and
expressly disclaim any obligation to update, the information contained in this



 CCG Investor Relations
 Ehud Helft / Kenny Green, +1-(646)-201-9246

SOURCE TowerJazz
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