Elbit Imaging reports NIS 136 million loss attributable to equity holders for first-quarter 2010

Elbit Imaging Ltd. ("EI") (TASE, NASDAQ: EMITF) announced today its results for the first quarter of 2010.

Loss for the first quarter of 2010 attributable to the equity holders of the company amounted to NIS 136 million (loss including minority interest totaled to NIS 170 million), as compared to gain attributable to the equity holders of the Company in the amount of NIS 21 million (gain including the minority interest totaled to NIS 9 million) in the corresponding quarter of 2009.

Company's shareholder's equity, as of March 31, 2010 amounted NIS 1.8 billion, compared with NIS 2.1 billion as of December 31, 2009.

Our presentation to the consolidated financial statements for the first quarter of 2010 is available through our website at: http://www.elbitimaging.com under: "Investor Relations - Company Presentations (03/2010)."

Dudi Machluf, Chief Executive Officer (Co-CEO), commented:

During the past quarter we executed our first significant transaction in the field of commercial centers in the United States. We invested in the Australian MDT publicly traded trust, with the right to appoint at least one half of our representatives on its board of directors and a purchase of 50% stake of its management company. MDT holds and manages 78 commercial centers across the United States, particularly open-air community centers - with a total area of 1.2 million square meters. This is indeed a complex transaction which has not yet been completed. Only after the completion of the right offering by MDT, which we committed to underwrite, will the actual scope of the transaction determined. MDT will constitute a yielding arm and will serve as a platform for additional transactions in the field of commercial centers in the United States.

Approximately one week ago, our subsidiary, Plaza Centers, opened an additional commercial center in Poland. It is the 30th shopping mall built by Plaza Centers of which 26 commercial centers have already been sold. Plaza Centers is currently negotiating financing lines for two additional commercial centers, one in Serbia and the other in Poland, and expects to commence construction and development once the financing loans are secured.

Our wholly owned Subsidiary, Elbit Medical Ltd recently filed a Prospectus for the proposed initial public offering ("IPO") of its shares to the public in Israel. Elbit Medical consists of our group's bio-tech and medical holdings. We are presently waiting for stable market conditions in order to move forward with the IPO.

The quarter's results were mainly affected by the lack of realized trading property, as we continue to manage and operate our real estate assets in anticipation of the prevailing market conditions, which will allow us to realize them at an appropriate price. The results were further influenced by the increase of non-cash financial expenses, mainly due to the revaluation of Plaza Centers notes and by the revaluation of the New Israeli Shekel vis-a-vis the Euro, which also affected Company's balance due to Plaza Centers' activity in Euros.