Blue Square-Israel Considers Alternatives to Purchase of Minority Share in Amot Investments.

Business Editors

ROSH HA'AYIN, Israel--(BUSINESS WIRE)--Jan. 11, 2000

Blue Square-Israel Ltd.(NYSE:BSI) announced today that it has authorized the President and CEO of the Company, Mr. Yoram Dar, to consider the possibility of locating potential candidates to replace the Company in its rights and obligations pursuant to an agreement according to which the Company will purchase approximately 30% of the outstanding shares of Amot Investments Ltd. Such a replacement would be subject to the consent of the sellers.

Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region, Blue Square currently operates 165 supermarkets under different formats, each offering varying levels of service and pricing.

The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of the Company, the occurrence of which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constraints, the effect of the Company's accounting policies, as well as certain other risks and uncertainties which are detailed in the Company's filings with the Security and Exchange Commission, particularly the prospectus with respect to its public offering in July, 1996.