Blue Square Announces it was Served With a Claim and Request for Approval as a Class Action

ROSH HAAYIN, Israel, February 27 /PRNewswire-FirstCall/ -- Blue Square-Israel Ltd. (hereinafter: "Blue Square") announced that it was served today with a claim and a request for approval as a class action (the "Claim"), in which the Company is being sued together with other defendants, including companies involved in the marketing of eggs and also other food marketing chains.

The Claim alleges that the defendants are marketing and/or displaying for purchase eggs that are classified as "Super Fresh Eggs" which are not subject to Israeli regulatory price controls, and are thus minimizing the shelf space and/or display of eggs that are subject to regulatory price controls. According to the claim, the defendants allegedly derive a higher profit margin from the sale of such "Super Fresh Eggs" instead of the regulated eggs. The claim alleges that the defendants coordinated their actions among each other, and that the defendants and the companies involved in the marketing of eggs are misleading consumers in violation of applicable consumer protection laws.

The plaintiff's personal claim is estimated at NIS 240 and if the Claim is approved as a class action, the approximate claim against all the defendants is estimated at NIS 1.1 billion. The Claim requests relief in the form of monetary compensation and a mandatory injunction to stop the current actions that are allegedly misleading the consumers.

The Company is currently reviewing the Claim, and at this preliminary stage of the proceedings, it is unable to evaluate its likelihood of success in the proceedings, including the likelihood that the Claim will be certified as a class action.

Blue Square-Israel Ltd. is a leading retailer in Israel. A pioneer of modern food retailing, in the region. Blue Square currently operates 186 supermarkets under different formats, each offering varying levels of services and prices. For more information, please refer to the Blue Square-Israel Ltd. website at http://www.bsi.co.il/.

Forward Looking Statements

The statements contained in this release, except for historical facts, which are forward-looking with respect to plans, projections, or future performance of the Company, involve certain risks and uncertainties. Potential risks and uncertainties include, but are not limited to, risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constrains, 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 Securities and Exchange Commission, particularly the Annual Report on Form 20-F/A for the year ended December 31, 2006.

Contact: Blue Square-Israel Ltd., Elli Levinson-Sela, General Counsel & Corporate Secretary, Telephone: +972-3-9282670 Fax: +972-3-9282498 Email: ellils@bsi.co.il