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Exhibit 12.1

# Certification by Chief
Executive Officer Pursuant to Section 302 of theSarbanes-Oxley Act of
2002

I, Avi Brener, certify
that:

1.       
I have reviewed this amendment no. 1 to the annual report on form 20-F/A of
American Israeli Paper Mills Limited (the "Company").

2.       
          Based on my knowledge, this annual report does not contain any untrue statement
          of a material fact or omit to state a material fact necessary to make the
          statements made, in light of the circumstances under which such statements were
          made, not misleading with respect to the period covered by this annual report.

3.       
          Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the company as of, and for,
          the periods presented in this report.

4.       
          The companys other certifying officer and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
          financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
          for the company and we have:

| | a) | Designed
such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure
that                material information relating to the registrant, including its
consolidated                subsidiaries, is made known to us by others within those
entities,                particularly during the period in which this report is being
prepared;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | Designed
such internal control over financial reporting, or caused such internal
               control over financial reporting to be designed under our supervision, to
               provide reasonable assurance regarding the reliability of financial
reporting                and the preparation of financial statements for external
purposes in accordance                with generally accepted accounting principles;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | Evaluated
the effectiveness of the registrants disclosure controls and
               procedures and presented in this report our conclusions about the
effectiveness                of the disclosure controls and procedures, as of the end of
the period covered                by this report based on such evaluation; and
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d) | Disclosed in this report any change in the registrants internal control
          over financial reporting that occurred during the period covered by the annual
          report that has materially affected, or is reasonably likely to materially
          affect, the registrants internal control over financial reporting; and
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.       
          The companys other certifying officer and I have disclosed, based on our
          most recent evaluation of internal control over financial reporting, to
          thecompanys auditors and the audit committee of the companys board
          of directors (or persons performing the equivalent functions):

| | a) | All
significant deficiencies and material weaknesses in the design or operation           of
internal control over financial reporting which are reasonably likely to
          adversely affect the companys ability to record, process, summarize and
          report financial information; and
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | Any
fraud, whether or not material, that involves management or other employees           who
have a significant role in thecompanys internal control over financial
          reporting.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: January 8, 2009 |  | By: /s/ Avi Brener
Avi BrenerChief Executive Officer
|--------------------- |  | ------------------------------------------------------------------



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