Alon Holdings Blue Square – Israel Ltd. announces that in connection with the Company’s plans to enter the cellular communication market by becoming a Mobile Virtual Network Operator (“MVNO”), on March 23, 2011 - Alon Cellular Ltd. (“Alon Cellular”), a joint- venture company in which the Company holds indirectly 70.1%, signed an MOU with Partner Communications LTD. (“Partner”) for launching cellular services in an MVNO model, which will enable Alon Cellular to offer cellular services and become a major player in Israel’scommunication market.
At this stage, there is no certainty that Alon Cellular will eventually operate such business, and the Company cannot assess at this stage the conditions and costs of such operation.
Alon Holdings Blue Square- Israel Ltd. (hereinafter: “Alon Holdings”) is the leading retail company in the State of Israel and operates in four reporting segments: In its supermarket segment, Alon Holdings as pioneer of modern food retailing, Alon Holdings, through its 100% subsidiary, Mega Retail Ltd., currently operates 210 supermarkets under different formats, each offering a wide range of food products, “Near Food” products and “Non-Food” products at varying levels of service and pricing. In its “Non-Food” segment, Alon Holdings, through its 100% subsidiary BEE Group Retail Ltd., operates specialist outlets in self-operation and franchises and offers a wide range of “Non-Food” products as retailer and wholesaler. In the Commercial and Fueling Sites segment, through its 78.38% subsidiary, which is listed on the Tel Aviv stock exchange. Dor Alon Energy inIsrael (1988) Ltd is one of the four largest fuel retail companies in Israel based on the number of petrol stations and a leader in the field of convenience stores. Dor Alon operates a chain of 188 petrol stations and 177 convenience stores in different formats in Israel. In its Real Estate segment, Alon Holdings, through its TASE traded 78.26% subsidiary Blue Square Real Estate Ltd., owns, leases and develops yield generating commercial properties and projects.
