American Israeli Paper Mills Ltd. Declares Cash Dividend

Hadera, Israel, 22 June 2006/PRNewswire-FirstCall/ -- American Israeli Paper Mills Ltd. (AMEX:AIP) today reported that the company's board of directors declared a cash dividend in a total amount of NIS 100,030,966 million (approximately USD 22,403,352 million), or NIS 24.85 (USD 5.5655) per share. The dividend will be paid on 18 July 2006 to shareholders of record on 05 July 2006. The foregoing dollar value of the cash dividend is calculated based on the exchange rate in effect on 21 June 2006 of NIS 4.465 to USD 1.00. The exact dollar payment per each share will be determined on the record date, based on the exchange rate on such date.

In case of change in the issued share capital of the company until the record date the dividend per share shall be adjusted accordingly.

The ex-dividend date on the American Stock Exchange is 30 June 2006. The ex-dividend date on the Tel Aviv Stock Exchange is 06 July 2006.

No ordinary share transfers between the company's U.S. and Israeli registers will be permitted from 30 June 2006 through and including 06 July 2006, to avoid any confusion that may result from the different ex-dividend dates on the American Stock Exchange and the Tel Aviv Stock Exchange. The temporary suspension of transfers between registers will not affect the trading of the Company's Ordinary Shares on either the American Stock Exchange or the Tel Aviv Stock Exchange.

Source: American Israeli Paper Mills Ltd.