Tower Semiconductor Ltd. — Regulatory Filings 2007

Nov 28, 2007

Tower Semiconductor Starts Volume Production for International Rectifier

Ramp is Commencing this quarter, Q4 2007

MIGDAL HAEMEK, Israel —November 28, 2007—Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), an independent specialty foundry, today announced that it has successfully produced, delivered and qualified the first prototype products for International Rectifier Corporation (IR). Volume production starts this quarter at Tower’s Fab 2. The products utilize IR’s proprietary technology, according to the agreement that was announced on September 25, 2006.

The manufacturing of wafers in Fab2 progressed according to plan and wafers were delivered on schedule. The first product came out functional and the yield met the customer’s expectations. The first product already passed qualification.

“We are very pleased with our results to date,” said Zmira Shternfeld-Lavie, VP and General Manager of Process Research & Development and Process Transfers for Tower. “The inter team support, capability and communication has been excellent. We are confident that the remaining milestones will also be met and look forward to many years of partnership and mutual success."

About Tower Semiconductor Ltd.

Tower Semiconductor Ltd. (Nasdaq: TSEM, TASE: TSEM) is an independent specialty foundry that delivers customized solutions in a variety of advanced CMOS technologies, including digital CMOS, mixed-signal and RF (radio frequency) CMOS, CMOS image sensors, power management devices, and embedded non-volatile memory solutions. Tower’s customer orientation is complemented by its uncompromising attention to quality and service. Its specialized processes and engineering expertise provides highly flexible, customized manufacturing solutions to fulfill the increasing variety of customer needs worldwide. Boasting two world-class manufacturing facilities with standard and specialized process technologies ranging from 1.0- to 0.13-micron, Tower Semiconductor provides exceptional design support and technical services to help customers sustain long-term, reliable product performance, while delivering on-time and on-budget results. More information can be found at http://www.towersemi.com.

Safe Harbor

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 our business is included under the heading "Risk Factors" in our most recent Annual Report on Form 20-F, Forms F-1, F-3 and 6-K, as were filed with the Securities and Exchange Commission and the Israel Securities Authority. We do not intend to update, and expressly disclaim any obligation to update, the information contained in this release.

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MEDIA CONTACTS:

Shelton Group, on behalf of Tower Semiconductor Melissa Conger, 972-239-5119 ext. 137 mconger@sheltongroup.com

Tower Semiconductor Noit Levi, +972 4 604 7066 noitle @towersemi.com