MIGDAL HAEMEK, Israel, April 10 /PRNewswire/ --

- 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.

About ETesiAN:

Etesian Semiconductor is a rep company with a mission to serve
as a one stop shop for the EMEA semiconductor industry by promoting and
offering all services and products needed by the fabless and IDM companies
for successful design and reliable manufacturing. ETesiAN's offering includes
advanced foundry manufacturing services, turn key services, IPs, design
tools, design services, test development and production, reliability, failure
analysis, packaging and financial VCs support. ETesiAN's team is composed of
sales executives coming from the foundry, VCs, Design and EDA background,
with extensive networking to the semiconductor industry in Europe and Israel.
Having its offices in Israel and France and partnerships in Germany and the
UK, ETesiAN has direct and local access to the majority of the fabless, IDM
and design service companies in the EMEA semiconductor market. ETesiAN's web
site is located at http://www.etesiansemi.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 Forms 20-F, 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.

Contacts:

    Tower contact:
    Tower Semiconductor USA
    Michael Axelrod
    +1-408-330-6871
    pr@towersemi.com

    ETesiAN contact:
    Elie Toledano
    elie.toledano@etesiansemi.com