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Principals of Genesis Development And Construction Ltd. Win Bid to Acquire Controlling Interest in Israel's Second Largest Oil, Energy and Real Estate Company.

NEW YORK--(BUSINESS WIRE)--June 17, 1998--GENESIS DEVELOPMENT AND CONSTRUCTION LTD. (Nasdaq: GDCUF, GDCOF, GDCWF and GDCZF) announced today that Eli Aran and Moshe Schnapp, its principal shareholders and its Chairman and President, respectively, are the successful bidders in acquiring a controlling interest in Granit Hacarmel Investments Ltd., the second largest oil, energy and real estate company in Israel, from Mashab Enterprise and Development Ltd., for approximately $211 million.

Granit Hacarmel, a public company listed on the Tel-Aviv stock exchange, had approximately $873 million of sales in 1997 and reported approximately $202 million of sales for the first quarter of 1998.

Granit Hacarmel has significant real estate holdings, both directly and through the gas stations it controls. The terms of the agreement provide an option for Genesis to purchase the equity interests to be acquired by Messrs. Aran and Schnapp at a price equal to their winning bid. Commenting on the agreement, Eli Aran, Chairman of Genesis, stated, "This agreement marks the beginning of a long term opportunity for Genesis. We believe that if Genesis exercises its option it would become the second-largest oil, energy and real estate company in Israel. Mashab Enterprise and Development was required to divest itself of certain assets by the Israeli government due to anti-competitive concerns. The Genesis principals were one of among over 30 qualified bidders for the assets, including Bank Leumi Le-Israel Ltd., Israel's second largest bank."

Headquartered in Haifa, Israel, Genesis Development and Construction Ltd. is an Israeli company principally engaged in real estate development and construction management with a primary focus on residential and public properties in Israel. The Company acts as a general contractor, subcontracting all of its construction activities. In addition to managing all of its own projects, Genesis also provides consulting, management and financial management services to other real estate developers and contractors.

This report may contain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties, and concern, among other things, the ability of the Company to compete in the Israeli real estate industry and the strength of such industry, and are subject to changes in the Israeli economy, continuing immigration, the availability of land, and the continued availability of raw materials and labor. Further information regarding these risks is described from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT: GENESIS DEVELOPMENT AND CONSTRUCTION LTD.

Eli Aran, 914/634-0300, fax, 914/634-8077

or

Rubenstein Investor Relations

Jeffrey Volk, 212/843-8086, fax, 212/843-9200
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Publication:Business Wire
Date:Jun 17, 1998
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