Ampal-American Israel Corporation and Other EMG International Owners Launch International Arbitration Process Against the Government of Egypt

Ampal-American Israel Corporation

, a holding company with experience in acquiring interests in various businesses with emphasis in recent years on energy, chemical and related fields, announced today, that Ampal, as a holder of a 12.5% interest in East Mediterranean Gas S.A.E., has joined EGI-Fund Investors, L.L.C., PTT International Company Limited and other international EMG's shareholders, in taking the formal steps required to initiate an international arbitration process against the Government of Egypt under the U.S.-Egypt bilateral treaty for the protection of investments.  The process was launched when EMG and other international shareholders gaveformal notice to the relevant Egyptian ministries demanding consultations with regard to breaches under the Gas Supply and Purchase Agreement (the "Gas Contract") between EMG and the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company (together the "Seller"), which include the failure to deliver the contractually required amounts of gas to EMG. These violations of the Gas Contract constitute violations of the Treaty between the United States of America and the Arab Republic of Egypt Concerning the Reciprocal Encouragement and Protection of Investments. In the event that the current dispute is not resolved through consultations, EMG's shareholders intend to submit the dispute to the International Centre for the Settlement of Investment Disputes in Washington DC.