Affiliated Foods Southwest Will Synchronize Its Distribution Operations with the Retalix Power Enterprise(TM) Software Suite.

DALLAS -- Retalix(R) USA (NASDAQ:RTLX), announced today that Affiliated Foods Southwest, a retailer-owned grocery distributor, has chosen the Retalix Power Enterprise(TM) software portfolio for a company-wide implementation.

Affiliated Foods Southwest, based in Little Rock, Arkansas, is a wholesale cooperative distributing food products to member stores in Southwestern United States, with $694 million in annual revenue. Affiliated Foods Southwest is one of the largest wholesale food cooperatives in the Southwestern region of the United States and second largest privately owned company in Arkansas. The company serves hundreds of independent grocers throughout Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee and Texas.

The Retalix Power Enterprise solution will provide Affiliated Foods Southwest with a single, synchronized solution for total business management, optimizing all key departments within the organization. Included with the Power Enterprise system are modules for Customer Relationship Management, Supplier Relationship Management, Retail Support Services, Warehouse Management, Financial Accounting and Business Intelligence. Retalix will also help Affiliated Foods deploy Voice technology in Affiliated Food's Distribution Centers.

John R. Mills, Chairman, President, and CEO of Affiliated Foods Southwest, said, "We selected the Retalix Power Enterprise suite because it provides the most advanced, fully integrated solution that is precisely tailored to the needs of food distributors. In order to provide world-class service to our members we needed a system that could enhance our labor efficiency, provide superior reporting capabilities, and enable us to precisely manage inventories to synchronize the needs of our suppliers and our customers."

"We are delighted to be working with Affiliated Foods Southwest on this highly strategic project that will replace their mainframe-based custom software," said Victor Hamilton, President and CEO of Retalix USA. "We feel confident that the robust functionality of Retalix Power Enterprise will help Affiliated Foods pull non-value-adding costs out of their business, while improving customer service to their member-retailers."

The implementation project of Retalix Power Enterprise at Affiliated Foods Southwest recently kicked off, and is scheduled to be completed in mid-2006.

About Affiliated Foods Southwest

Affiliated Foods Southwest is a wholesale cooperative distributing food products to member stores in Southwestern United States, with $694 million in annual revenue. Affiliated Foods Southwest is dedicated to providing good products, good facilities, and good service for its customers. More information available at www.affiliatedfoods.com.

About Retalix Ltd.

Retalix Ltd., with its North American headquarters in Plano, TX, provides integrated enterprise-wide software solutions for the food and consumer goods retail and distribution industries worldwide. Retalix solutions are installed in supermarkets, convenience stores, fuel stations, and quick service restaurants, as well as foodservice, grocery, convenience products, and fast moving consumer goods distribution organizations. The Company offers a full portfolio of software applications that automate essential retailing, distribution and supply chain management operations. These applications enable users to increase operating efficiencies, while improving customer acquisition, retention and profitability. With more than 34,000 installations across 50 countries, Retalix develops and supports its software through more than 1,200 employees in its various subsidiaries and offices worldwide.

Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and U.S. federal securities law. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include risks relating to Retalix's anticipated future financial performance and growth, continued roll-outs with existing customers, the potential benefits to food and fuel retailers and suppliers, expansion into new geographic markets, and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including Retalix's Annual Report on Form 20-F for the year ended December 31, 2004, for a discussion of these and other important risk factors. Retalix undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.