Oil and Gas Press

Ampal-American Israel Corporation Reports 2007 Fourth Quarter and Year End Financial Results

Year-end 2007 Revenues Increased 159% to $37.8M;

EMG Pipeline Technical Commissioning Underway with Gas Flowing;

Gadot Chemical Tankers and Terminals Contributed Significantly to Q4 Revenue and Net Income

TEL AVIV, Israel–(BUSINESS WIRE)–Ampal-American Israel Corporation (Nasdaq:AMPL), a holding company with experience in acquiring interests in various businesses with emphasis in recent years on energy and related fields, today announced financial results for the fourth quarter and year ended December 31, 2007.

For the year ended December 31, 2007, revenues increased 159% to $37.8 million, compared to revenues of $14.5 million for the same period of 2006.

Net income for the year was $7.8 million, or $0.16 per basic and diluted share compared to a net loss of ($7.1) million, or ($0.40) per basic and diluted share, for the comparable period in 2006.

Weighted average shares outstanding used in the calculation for the periods were approximately 51.4 million and 24.1 million shares, respectively.

As of December 31, 2007, the Company had cash and cash equivalents, including short-term investments, of $66.7 million. Ampal ended the year with total assets of $774.8 million and shareholders’ equity of $258.4 million, as compared to $401.7 million and $208.8 million, respectively at December 31, 2006.

For the fourth quarter of 2007, revenues increased 3,400% to $35.2 million, compared to revenues of $1.0 million for the fourth quarter of 2006.

Net income for the fourth quarter was $4.1 million, or $0.08 per basic and diluted share, compared to a net loss of $(6.1) million, or $(0.19) per basic and diluted share, for the comparable period in 2006. Weighted average shares outstanding used in the calculation for the periods were approximately 57.7 million basic and diluted for the fourth quarter of 2007, and approximately 32.9 million basic and diluted for the fourth quarter of 2006.

Ampal financial results for the fourth quarter of 2007 were significantly affected by the acquisition of the controlling interest of Gadot.

Yosef Maiman, Chairman, President and Chief Executive Officer of Ampal said, “We are extremely pleased with our 2007 results and the overall strategic and operational progress Ampal made during the year. Perhaps our most important recent milestone occurred following the close of the fourth quarter, and relates to our stake in the East Mediterranean Gas Co. S.A.E. (EMG). Technical commissioning on the EMG pipeline commenced, with gas beginning to flow and we anticipate that the gas will flow commercially in the second quarter.”

He continued, “Our results for the fourth quarter reflect the successful execution of our strategy to focus on acquisitions in energy and related sectors as well as opportunistic investments that provide us access to cash flow. We have begun to realize the benefits of Gadot, a chemical storage and shipping company in which we acquired a 65.5% (63.7% on a fully diluted basis) ownership stake on December 3, 2007. In the first month of our ownership, Gadot has made a significant contribution to both our top and bottom line. We expect that going forward, Gadot will continue to be a substantial contributor to our results.

“The Ethanol project in Colombia is moving forward, as the necessary resources to begin operations in the region are being developed and acquired. We are also working on securing the permits needed to advance our wind energy projects in Greece. We are exploring wind energy opportunities in other parts of the world as well, and expect to advance these efforts as 2008 progresses.”

Mr. Maiman concluded, “Throughout 2008, we plan to focus on adding to our portfolio of investments through strategic acquisitions and partnerships that are profitable and which provide us with access to significant free cash flow. We believe our experience in managing a diverse portfolio of assets will help position Ampal for continued growth in the years to come.”

About Ampal:

Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. The Company is seeking opportunistic situations in a variety of industries, with a focus on energy and related sectors. The Company’s goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. For more information about Ampal please visit our web site at www.ampal.com.

Safe Harbor Statement

Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) and information relating to Ampal that are based on the beliefs of management of Ampal as well as assumptions made by and information currently available to the management of Ampal. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and similar expressions as they relate to Ampal or Ampal’s management, identify forward-looking statements. Such statements reflect the current views of Ampal with respect to future events or future financial performance of Ampal, the outcome of which is subject to certain risks and other factors which could cause actual results to differ materially from those anticipated by the forward-looking statements, including among others, the economic and political conditions in Israel, the Middle East, including the situation in Iraq, and the global business and economic conditions in the different sectors and markets where Ampal’s portfolio companies operate. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcome may vary from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Ampal or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Ampal’s annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. Ampal assumes no obligation to update or revise any forward-looking statements.

Contacts
AMPAL-AMERICAN ISRAEL CORPORATION
Irit Eluz, 1-866-447-8636
CFO - SVP Finance & Treasurer
irit@ampal.com
or
KM/KCSA Investor Relations
Roni Gavrielov, 011-972-3-516-7620
roni@km-ir.co.il
or
Jeff Corbin, 212-896-1214
jcorbin@kcsa.com
or
Marybeth Csaby, 212-896-1236
mcsaby@kcsa.com
or
David Burke, 212-896-1258
dburke@kcsa.com

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Tags: American, Corporation, israel