Tower Semiconductor to Increase Its Sales Activity in Europe

Adds ETesiAN Semiconductor to its chain of local representatives addressing the $1.9B European Foundry Market

Tower Semiconductor Ltd. (NASDAQ: TSEM; TASE: TSEM), an independent specialty foundry, today announced teaming up with ETesiAN Semiconductor to provide local support for Tower's growing customer base in Europe. ETesiAN joins Solution in Silicon in the UK and Scandinavia and EquipIC in the Netherlands to further strengthen Tower's support for existing and new European customers.

The new European representative office will be providing both logistic and technical support to Tower's existing customers as well as work to expand Tower's customer base in the region by winning new opportunities. According to a recent McClean report, the European Total Available Market (TAM) for pure-play foundry in 2007 was $1.9B, representing 9% of the world-wide foundry market. Tower currently serves more than 10 customers in Europe, among them several of the top 10 IDM and fabless companies of the region.

"ETesiAN's experienced team is pleased to join the worldwide network of local representative offices supporting Tower's customers. We are proud to be offering Tower's state-of-the-art technologies to the demanding European customers." said Elie Toledano, CEO of ETesiAN "We have identified an excellent match between Tower's specialty technology offering and the European market needs. Complemented by Tower's superior customer support, we foresee a prosperous future and business growth."

"Tower has been in production for European customers for more than a decade. The surge in demand for Tower's advanced processes, stemming from new and existing customers, motivated us to expand our sales channels in Europe by teaming up with an additional representative company." said Jonathan Gendler, Tower's Director of Europe Sales "Tower's renowned customer support is further strengthened to answer the needs of existing customers and handle the increased influx of new opportunities."

Tower recently launched its new Power Management platform in the 0.18-micron technology node. This new offering, as well as Tower's Mixed-Signal, RF-CMOS, CMOS image sensors and embedded NVM, serve well the demand for specialty and customized technologies of the European market.

About Tower Semiconductor Ltd.:

Tower Semiconductor Ltd. is a pure-play independent specialty 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 mixed-signal & RF-CMOS, Power Management, CMOS image-sensor and non-volatile memory technologies. To provide world-class customer service, the company maintains two manufacturing facilities, each with standard and specialized process technology processes: Fab 1 ranging from 1.0 to 0.35 and Fab 2 featuring 0.18 and 0.13-micron. Tower's web site is located at http://www.towersemi.com.

Source: Tower Semiconductor