Tower Semiconductor Announces that Jazz Technologies Set August 8, 2008 as the Record Date for a Special Meeting of Stockholders to Vote On and Approve the Merger with Tower

Holders of Jazz Technologies Common Stock on August 8, 2008 Will Be Entitled to Vote On and Approve the Merger

MIGDAL HA’EMEK, Israel -- July 31, 2008 -- Tower Semiconductor, Ltd. (Nasdaq: TSEM, TASE: TSEM), an independent specialty foundry, today announced that Jazz Technologies, Inc. (AMEX: JAZ), has set August 8, 2008 as the record date for a Special Meeting of Stockholders to vote on, approve and adopt the Agreement and Plan of Merger and Reorganization with Tower Semiconductor. Jazz Technologies has not yet set a date for the Special Meeting of Stockholders.

Jazz Technologies set the record date in connection with Tower and Jazz joint press release dated May 19, 2008, announcing that Tower Semiconductor and Jazz Technologies entered into a definitive agreement and Plan of Merger and Reorganization. The merger is subject to the approval of Jazz Technologies' stockholders who would hold the majority of Jazz Technologies common shares as of the close of business on August 8, 2008.

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.

About Jazz Technologies and Jazz Semiconductor

Jazz Technologies(TM) (AMEX: JAZ) is the parent company of Jazz Semiconductor, Inc., a leading independent wafer foundry focused on Analog-Intensive Mixed-Signal (AIMS) process technologies. The company's broad product portfolio includes digital CMOS and specialty technologies, such as RF CMOS, Analog CMOS, Silicon and SiGe BiCMOS, SiGe C-BiCMOS, Power CMOS and High Voltage CMOS. These technologies are designed for customers who seek to produce analog and mixed-signal semiconductor devices that are smaller and more highly integrated, power-efficient, feature-rich and cost-effective than those produced using standard process technologies. Jazz customers target the wireless and high-speed wireline communications, consumer electronics, automotive and industrial end markets. Jazz’s executive offices and its U.S. wafer fabrication facilities are located in Newport Beach, CA. Jazz Semiconductor also has engineering and manufacturing support in Shanghai, China. For more information, please visit http://www.jazztechnologies.com and http://www.jazzsemi.com.