Electrochemical Industries -1952- Ltd. Reports On Negotiation to Sell Its Holding in...

Business Editors

ACRE, Israel--(BUSINESS WIRE)--June 14, 2001

Electrochemical Industries Ltd. (AMEX:EIL)

The Company hereby reports on completion of negotiation with Palram Industries (1990) Ltd. group, to sell all the Company's holdings in the following corporations:

2. DRE (Durham Real Estate) Ltd. (hereinafter: "DRE")

3. Palmar Ltd. (hereinafter: "PALMAR"}

The above corporations are held, at present, by the Company and by Palram Industries (1990) Ltd.

The consideration for the sale of the Company's holdings in DPL will be at a total sum of approximately US $ 3.75 Million, and the consideration for the sale of the Company's holdings in DRE and Palmar will be at a total sum of approximately US $ 2.5 Million.

Expected capital profit to the Company from the sale of its holdings in the three corporations is approximately US $ 4 Million, before tax.

Wording and signature of detailed agreement and completion of the transaction is expected in a few weeks, subject to various approvals.

Editor note: Translation from Hebrew