Delhaize America's Sweetbay / Kash n' Karry Chain Selects Retalix StoreLine POS for Its Supermarkets in Florida.

DALLAS -- Retalix USA (NASDAQ:RTLX), announced today that Sweetbay / Kash n' Karry, a 103-store supermarket chain headquartered in Tampa, Florida, a subsidiary of Delhaize America, has selected Retalix StoreLine Linux-based POS for rollout throughout its Florida stores.

Retalix StoreLine is already installed in the new Sweetbay locations in Seminole and Bonita Springs, Florida. As previously announced, another subsidiary of Delhaize America, Hannaford Bros. Co., a 142-supermarket food retailer in the northeastern US, rolled out the Retalix StoreLine solution. Retalix StoreLine is an advanced in-store solution that addresses grocery industry requirements by offering hardware-independent world-class POS, back office and mobile functionality, ease of use, system robustness and the ability to process critical data in real time across multiple sales channels and formats.

"Based on Hannaford's successful experience with Retalix, we felt comfortable recommending it to our sister company, Sweetbay / Kash n' Karry," said Bill Homa, Hannaford SVP & CIO. "Retalix was able to provide us with the small foot-print Linux option we desired, with its StoreLine application. The result is that Hannaford and Sweetbay / Kash n' Karry have the unique benefit of freedom to choose between a Microsoft Windows or Linux operating system, while maintaining consistent functionality across the different brands."

"We have been working with Hannaford Bros. for several years now and are delighted that Sweetbay / Kash n' Karry have also selected our solutions. We are positive that Sweetbay will be able to benefit from the reduced cost of ownership of our small footprint, while taking advantage of the rich functionality, flexibility and robustness provided by the StoreLine solution," said Barry Shaked, President and CEO of Retalix Ltd.

About Sweetbay / Kash n' Karry

Sweetbay / Kash n' Karry currently operates 103 supermarkets in Florida and is a wholly-owned subsidiary of Delhaize America, Inc., a leading USA supermarket operator with over 1,500 stores in 16 states in the eastern USA, also operating the banners Food Lion, Hannaford Supermarkets and Harveys.

Kash n' Karry is the supermarket of choice for shoppers in Central Florida who want high quality and exceptional value. In January 2004, Kash n' Karry announced the creation and roll out of a new supermarket concept called Sweetbay Supermarket in its core markets on the West Coast of Florida. The new brand and store concept will provide customers with great quality and strong fresh food and ethnic offering. In its initial phase, it will be developed in addition to the existing Kash n' Karry brand. Over the next three years, the entire chain will transform to the new brand. For more information, please visit www.delhaize.com.

About Retalix Ltd.

Retalix Ltd., with North American headquarters in Dallas, TX, provides integrated enterprise-wide software solutions for the global food and fuel retail industries, including supermarkets, convenience stores, fuel stations and restaurants. The Company offers a full suite of software applications that support a food retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability. With installations in more than 33,000 stores and across 44 countries, the Company markets its software solutions through direct sales, distributors, local dealers and its various subsidiaries. For more information, please visit the Company's web site at www.retalix.com.

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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, 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 the Company's anticipated future financial performance, continued roll-outs with existing customers, the market reception of its new e-marketplace and ASP services, the potential benefits to food and fuel retailers and suppliers, expansion into new geographic markets, the conversion of sales leads into customers and the ramp-up of ASP users, the integration of the Company's acquisition of OMI 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 the Company's Annual Report on Form 20-F for the year ended December 31, 2003, for a discussion of these and other important risk factors. The Company 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.