Ampal-American Israel Corporation has over 60 years of experience in managing investments in Israel. Since 2002, Mr. Yosef A. Maiman has been the controlling shareholder. East Mediterranean Gas Company (EMG), an Egyptian joint stock company, organized in accordance with the Egyptian Special Free Zones system, has been granted the right to export natural gas from Egypt to Israel, other locations in the East Mediterranean basin and to other countries. EMG’s first project involves linking the Israeli energy market with the Egyptian national gas grid via an East Mediterranean pipeline. As of May 2008, the gas is commercially flowing. EMG is the developer, owner and operator of the pipeline and its associated facilities on shore in both the point of departure at El Arish, Egypt and the point of entry in Ashkelon, Israel. In the Israeli market, EMG’s first contract was signed in late 2005 with the Israel Electric Corporation for a quantity of 2.1 BCM annually over 15-20 years. EMG is in the process of negotiating several additional agreements covering much of the anticipated 7.0 BCM annually earmarked for the Israeli market. This project is governed by an agreement signed between Israel and Egypt which designates EMG as the authorized exporter of Egyptian gas, secures EMG’s tax exemption in Israel and provides for the Egyptian government’s guarantee for the arrival of the gas to the Israeli market. The Company accounts for its 12.5% equity interest (includes 8.6% held by the Joint Venture) in EMG and a number of other investments on the basis of the cost method. EMG, which is one of the Company’s most significant holdings as of December 31, 2008, was acquired by Ampal and by a joint venture in which Ampal is a party in a series of transactions from Merhav, which is an entity controlled by one of the members of the Company’s controlling shareholder group. As a result, the transactions were accounted for as transfers of assets between entities under common control, which resulted in Merhav transferring the investment in EMG at carrying value. Wind Energy (50%): The Company signed a joint venture agreement with Clal Electronics Industries Ltd. (“Clal”) for the formation of a joint venture that will focus on the new development and acquisition of controlling interests in wind energy projects outside of Israel. The joint venture, owned equally by Clal and the Company, will seek to either develop or acquire wind energy opportunities with a goal of establishing at least 150MW of installed capacity within the next 3.5 years. The joint venture’s initial project is the development of a wind farm in Greece. Ethanol Industry: The Company entered into an Option Agreement with Merhav M.N.F. Ltd. providing the Company with the option to acquire up to a 35% equity interest in a sugarcane ethanol production project in Colombia that is under development. In November 2009 Ampal bought Smile012 from Zahav Internet for 1.2 billion shekels which it then sold for a profit of 310 million shekels before tax in March 2011.

Ampal controlled by Yossi Maiman has published its 2010 financial report. The company known principally by the public as owning 12.5% of the shares in EMG has reported growth in revenues but the company’s losses have grown due to a weak dollar. In addition to its holdings in EMG, Ampal owns 100% of the Gadot Chemical company, 50% of GWE that deals in renewable energy, 37% of the real-estate company Bay Heart and 51% of the country club in Kfar Saba. Most of the company’s revenues are from Gadot. During the last quarter of 2010 Ampal’s revenues increased by 52% compared to the same period last year and stood at $138.3 million. In the bottom line the company registered a loss of $9 million compared to a loss of $230 thousand during the 4th quarter of 2009. During 2010 as a whole the revenues increased by 18% compared to 2009 to $505 million, but the bottom lines losses were $44.8 million compared to $19.5 million during 2009.