Hy-Vee Selects Retalix StoreLine for Next Generation Store Platform.

Business Editors

DALLAS--(BUSINESS WIRE)--July 30, 2003

Major Midwest Food and Drug store operator selects

Microsoft Windows based Retalix StoreLine Point of Sale

as next-generation store platform

Retalix USA (Nasdaq:RTLX) announced today that Hy-Vee, Inc., operator of more than 200 grocery stores throughout the Midwest, has selected the Retalix StoreLine Point of Sale and Fuel application as its next generation retail platform. Hy-Vee will begin installation in August 2003.

Headquartered in Des Moines, Iowa, Hy-Vee's supermarkets are located throughout Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota and Minnesota. Hy-Vee also operates Drug Town drug stores in Iowa and Nebraska. Hy-Vee's combination food and drug centers reflect the changing lifestyles of today's consumers, with emphasis on freshness, variety and one-stop shopping convenience.

The Retalix StoreLine POS application is an advanced, hardware independent solution that addresses grocery industry functionality requirements. Based on the Microsoft Windows platform, Retalix StoreLine POS offers world-class ease of use, fuel center support and total systems integration.

"After considering a number of different vendors and products, we chose Retalix because we think the Retalix StoreLine System provides the flexibility to grow with our business and change as our business needs change," said Don Miller, Hy-Vee Assistant Vice President of Equipment Purchasing.

"In today's competitive retail marketplace, it is critical to have the right store system architecture in place that allows a retailer to lead, adapt and react to an ever-changing market. Hy-Vee is committed to being a leader in the markets they operate in and we are excited to have this opportunity to work with them," said Jeff Yelton, President and CEO of Retalix USA.

"Retalix's StoreLine POS and Fuel application offering, based on the Microsoft Windows platform, delivers both functionality and a competitive edge to Hy-Vee within the food and drug industry," said Tom Litchford, director of marketing and channel, retail and hospitality industries at Microsoft. "We are pleased to partner with Retalix on this solution and are committed to providing the next generation of retail-hardened platforms to retailers that provide better business flexibility, connectivity and the greatest return on investment."

About Hy-Vee

Hy-Vee, Inc. is an employee-owned corporation operating more than 200 retail stores in seven midwestern states. The company provides career opportunities for 46,000 employees and generates annual sales in excess of $4.0 billion, ranking it among the top 15 supermarket chains in the nation.

About Retalix Ltd.

Retalix Ltd., with North American headquarters in Dallas, Texas, provides integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores 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 20,000 stores and quick service restaurants across 44 countries, the Company markets its software solutions through direct sales, distributors, local dealers and its various subsidiaries. The Company was founded in 1982 as Point of Sale Limited and changed its name in November of 2000 to Retalix Ltd. The Company's ordinary shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the NASDAQ National Market System since July 1998. For further information, please visit the Company's web sites 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 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, 2001, 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.

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