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Tower Semiconductor Ltd. Capital/Financing Update 2004

Jan 23, 2004

7095_rns_2004-01-23_e84de1c0-4046-4c94-bafd-a0f9bf938117.pdf

Capital/Financing Update

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NEWS RELEASE

TOWER SEMICONDUCTOR ANNOUNCES PRICING FOR FOLLOW-ON PUBLIC OFFERING

MIGDAL HAEMEK, Israel — January 22, 2004 — Tower Semiconductor (NASDAQ: TSEM; TASE: TSEM) announced today that it had priced the follow-on public offering of 11,000,000 of its ordinary shares at $7 per share. All of the ordinary shares are being offered by Tower.

The net proceeds to Tower from the offering are expected to be approximately $72.3 million. In addition, Tower has granted the underwriters of the offering an option to purchase up to an additional 1,650,000 ordinary shares to cover overallotments, if any.

The offering is being managed by CIBC World Markets, Piper Jaffray and C.E. Unterberg, Towbin. When available, a copy of the final prospectus relating to the offering may be obtained from CIBC World Markets, 425 Lexington Avenue, New York, NY 10017, +1.212.856.4000. The final prospectus will also be available to the public on the Securities and Exchange Commission’s Internet site at http://www.sec.gov, the Israeli Securities Authority's Internet site at http://www.magna.isa.gov.il/ and the Tel Aviv Stock Exchange’s Internet site at http://www.tase.co.il.

About Tower Semiconductor Ltd.

Tower Semiconductor Ltd. is a pure-play independent wafer foundry established in 1993. Tower manufactures integrated circuits with geometries ranging from 1.0 to 0.18 microns; it also provides complementary technical services and design support. In addition to digital CMOS process technology, Tower offers advanced non-volatile memory solutions, mixed-signal and CMOS image-sensor technologies

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.

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Investor Relations Contact Sheldon Lutch Fusion IR & Communications +1 (212) 268 1816 [email protected]

PR Agency Contact Bruce Hokanson Loomis Group +1 (360) 574 4000 [email protected]

Corporate Contact Michael Axelrod Tower Semiconductor USA +1 (408) 330 6871 [email protected]