TowerJazz Announces Successful Completion of Its Rights Offering

  TowerJazzAnnounces Successful Completion of Its Rights Offering

   90Percent of All Available Rights Were Exercised ForGross Proceeds of
                                 $22Million

 Israel Corporation, a Major Shareholder, has Invested $7 Million to Exercise
    Rights and has Committed to Exercise all of its Series 8 Warrants for
             Additional Proceeds of $10 Million by July 22, 2013

Business Wire

MIGDAL HAEMEK, Israel -- June 30, 2013

Tower Semiconductor Ltd. (NASDAQ: TSEM; TASE: TSEM), the global specialty
foundry leader, announced the completion of its previously announced rights
offering to eligible security holders. The company received gross proceeds of
$22 million out of maximum possible amount of approximately $24 million
offered, representing a 90% participation rate. Israel Corporation Ltd., a
major shareholder of the Company, exercised its Rights in full and has further
committed to exercise all of its Series 8 warrants on or before July 22, 2013,
for an additional investment in TowerJazz of approximately $10 million.

"In the past weeks, we had opportunities to meet with multiple investors and
discuss company strategies, tactics and performance. There was an overall
understanding, appreciation and belief in the direction the company is taking
and of the strong traction within the strategic initiatives that the company
has announced over the preceding years. This appreciation and belief is best
evidenced, and we are most pleased to announce, that 90% of all available
rights were exercised. We appreciate this strong vote of confidence by our
stakeholders,"saidRussell Ellwanger, chief executive officer of the Company.
"We will continue to focus on analog technology leadership with strategic
steps driving deeper and broader offerings within the industrial mega trends
of 1) green everything, 2) wireless everything, and 3) integrated smart
systems and hence provide unique value to our customers with strong financial
models."

A total of approximately 1.1 million rights were exercised in the rights
offering. Each right is exercisable for four ordinary shares, six short-term
Series 8 warrants exercisable at $5.00 per share until July 22, 2013 and five
Series 9 warrants exercisable at $7.33 per share until June 27, 2017. Both the
Series 8 warrants and the Series 9 warrants will be listed for trade on
theTel AvivStock Exchange and its CUSIP numbers are M87915 407 and M87915
415, respectively.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), 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,
the global specialty foundry leader. TowerJazz manufactures integrated
circuits, offering a broad range of customizable process technologies
including: SiGe, BiCMOS, Mixed-Signal/CMOS, RFCMOS, CMOS Image Sensor, Power
Management (BCD), and MEMS capabilities. TowerJazz also provides a world-class
design enablement platform that enables a quick and accurate design cycle. In
addition, TowerJazz provides (TOPS) Transfer Optimization and development
Process Services to IDMs and fabless companies that need to expand capacity.
TowerJazz offers multi-fab sourcing with two manufacturing facilities in
Israel, one in the U.S., and one in Japan. For more information, please visit
www.towerjazz.com.

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 TowerJazz’s
business is included under the heading "Risk Factors" in Tower’s most recent
filings on Forms 20-F and F-3, as were filed with 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. Tower and Jazz do not intend to update, and
expressly disclaim any obligation to update, the information contained in this
release.

Contact:

CCG Investor Relations
Kenny Green, 646-201-9246
towersemi@ccgisrael.com
or
TowerJazz Investor Relations Contact:
Noit Levi, noit.levi@towerjazz.com
 
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