NEWS ANNOUNCEMENT FOR IMMEDIATE RELEASE

TowerJazz Earns a Spot on 2011 InformationWeek 500 List of Top Technology

Innovators Across America

Recognized for critical and complex task; successful migration of email to cloud, achieved cost savings and system compliance

NEWPORT BEACH, Calif., September 14, 2011 – TowerJazz, the global specialty foundry leader, today announced that it made this year’s InformationWeek 500, an annual listing of the nation’s most innovative users of business technology. This was TowerJazz’s first submission to the InformationWeek 500. The 2011 list was revealed last night at a gala awards ceremony at the exclusive InformationWeek 500 Conference taking place at the St. Regis Monarch Beach Resort, Dana Point, CA.

“The fact that we were able to make the list on the first attempt is testament to the quality and dedication of our IT team at TowerJazz,” said Dalit Dahan, Senior Vice President of Information Technology. “It was essential to have all sites use a common IT platform in order to allow for effective and efficient correspondence and coordination among the sites. This entailed moving the Newport Beach site email system for over 700 users to be compatible with the Exchange system at our headquarters. The IT team had to consider many factors in this decision including cost, system security, time and resources. In the end, choosing Microsoft’s cloud service has proven to be the best overall solution.”

The challenge for the TowerJazz IT department in Newport Beach was that the company had been using Lotus Notes for many years. The choices were to implement a fully in-house solution with a large capital investment or use a cloud-based solution. The cloud solution was chosen by the team. Selling the idea to management included the financial benefits, but also convincing them that moving something as critical as email outside the corporate firewall was safe.

“For 23 years, the InformationWeek 500 has chronicled and honored the most innovative users of business technology,” said InformationWeek Editor In Chief Rob Preston. “In this day and age, however, being innovative isn’t enough. Companies and their IT organizations need to innovate faster than ever before to stay a step or two ahead of their customers, partners, and competitors. This year’s ranking placed special emphasis on those high-octane business technology innovators.”

InformationWeek identifies and honors the nation's most innovative users of information technology with its annual 500 listing and also tracks the technology, strategies, investments and administrative practices of America’s best-known companies. Top winners have included: The Vanguard Group, CME Group, Conway, National Semiconductor, Kimberly-Clark, Hilton Hotels and Unum. The InformationWeek 500 rankings are unique among corporate rankings as it spotlights the power of innovation in information technology, rather than simply identifying the biggest IT spenders.

Additional details on the InformationWeek 500 can be found online at www.informationweek.com/iw500/.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the global specialty foundry leader, its fully owned U.S. subsidiary Jazz Semiconductor, Inc. and its fully owned Japanese subsidiary TowerJazz Japan, LTD, operate collectively under the brand name TowerJazz, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13-micron. TowerJazz provides industry leading design enablement tools to allow complex designs to be achieved quickly and more accurately and offers a broad range of customizable process technologies including SiGe, BiCMOS, Mixed-Signal and RFCMOS, CMOS Image Sensor, Power Management (BCD), and Non-Volatile Memory (NVM) as well as MEMS capabilities. To provide multi-fab sourcing, TowerJazz maintains two manufacturing facilities in Israel, one in the U.S., and one in Japan with additional capacity available in China through manufacturing partnerships. For more information, please visit www.towerjazz.com.

Safe Harbor Regarding Forward-Looking Statements

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 TowerJazz’s business is included under the heading "Risk Factors" in Tower’s most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority and Jazz’s most recent filings on Forms 10-K and 10-Q, as were filed with the SEC, respectively. Tower and Jazz do not intend to update, and expressly disclaim any obligation to update, the information contained in this release.

About InformationWeek Business Technology Network (http://www.informationweek.com/)

The InformationWeek Business Technology Network provides IT executives with unique analysis and tools that parallel their work flow—from defining and framing objectives through to the evaluation and recommendation of solutions. Anchored by InformationWeek, the multimedia powerhouse that looks across the enterprise, the network scales across the most critical technology categories with online properties like DarkReading.com (security), NetworkComputing.com (networking and communications) and PlugintotheCloud.com (cloud computing). The network also provides focused content for key IT targets, such as CIOs, developers, and SMBs via InformationWeek Global CIO, Dr. Dobb's and InformationWeek SMB, as well as vital vertical industries with InformationWeek Financial Services, Government, and Healthcare resources. Content is at the nucleus of our information distribution strategy—IT professionals turn to our experts and communities to stay informed, get advice and research technologies to make strategic business decisions.

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Press Contact for InformationWeek: Press Contact for TowerJazz:

Winnie Ng Schuchman Lauri Julian

Vice President, Marketing US PR/MarCom

631.406.6507 949.715.3049 wng@techweb.com lauri.julian@towerjazz.com