Tower Semiconductor Ltd. — Earnings Release 2006

Oct 18, 2006

Tower Semiconductor Ltd. to Report Third Quarter 2006 Results

Third quarter 2006 results will include one-time financing income of $80 million resulting from the recently announced closing of the bank restructuring deal

MIGDAL HAEMEK, Israel - October 18, 2006 - Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), a pure-play independent specialty foundry, will issue its third quarter earnings release on Tuesday, November 7, 2006 during pre-market hours and will hold its quarterly conference call to discuss these results at 11:00 a.m. Eastern time and 18:00 Israel time. Tower's third quarter 2006 results will include one-time financing income of $80 million resulting from the recently announced closing of the bank restructuring deal.

This call will be Web cast by Thomson/CCBN and can be accessed at Tower Semiconductor's Web site at http://www.towersemi.com or interested parties may participate in the conference by dialing:

1-866-860-9642 (U.S. Toll-Free) 03-918-0609 (Israel) 972-3-918-0609 (International)

The teleconference will be available for replay 90 days at: http://www.earnings.com.

The web-cast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).

About Tower Semiconductor:

Tower Semiconductor Ltd. is a pure-play independent wafer foundry established in 1993. The company manufactures integrated circuits with geometries ranging from 1.0 to 0.13 micron; it also provides complementary technical services and design support. In addition to digital CMOS process technology, Tower offers advanced embedded non-volatile memory solutions, mixed-signal & RF-CMOS, and CMOS image-sensor technologies. To provide world-class customer service, the company maintains two manufacturing facilities: Fab 1 has process technologies from 1.0 to 0.35 micron and can produce up to 16,000 150mm wafers per month. Fab 2 features 0.18 and 0.13-micron, standard and specialized process technologies, and has the current capacity of up to 15,000 200mm wafers per month. Tower's Web site is located at: www.towersemi.com

Contact:

Tower Semiconductor Ilanit Vudinsky, +972 4 650 6434 ilanitvu@towersemi.com