Hadera, Israel, 05 March 2007 -- /PRNewswire/ -- American Israeli Paper Mills Ltd. (AMEX:AIP) announced that following its announcement of 09 November 2006 regarding the approval of a strategic plan by an associated company, Kimberly-Clark Turkey (KCTR), for the expansion of its activities in Turkey for the coming decade, KCTR has reported today that a principles agreement was signed with Unilever. According to the agreement, Unilever shall distribute and sell KCTR's products in Turkey, excluding distribution and sales to the food chains, which will be done directly by KCTR.

Unilever has a broad distribution and sales organization in Turkey and the agreement is intended to enable KCTR to increase its market cover and volume of sales within the framework of implementing the strategic plan.

The company can't estimate at this stage the influence of the agreement on its profitability of KCTR.

Source: American Israeli Paper Mills Ltd.