Africa-Israel Presents Its 2007 Annual Results

TEL AVIV, Israel--(Business Wire)--
Africa Israel Group (TASE:AFIL) presented today its financial
results for the fourth quarter and 2007 year end results.

Record Net income of 4.3 billion NIS in 2007

-- Total assets reached 41 billion NIS, a 118% increase compared
to December 31, 2006

-- AFI Development's portfolio independent valuation increased by
16% representing a 4.6% increase in the Company's NAV to
US$5.9 billion or 11.2 dollars per share

-- Profit from Rental and operation of properties reached 303
million NIS, a 48% increase compared to 2006

-- Assets' revaluation contributed a gross income of 2 billion
NIS

Financial Highlights for 2007

Net profit reached 4.3 billion NIS, compared to 844 million NIS in
2006.

The Company reported a loss from development, construction and
realization of assets of 127 million NIS mainly due to two reasons:
The financial results of Danya Cebus, the Construction and
Infrastructure subsidiary; Accounting adjustment related to the ending
of the joint venture agreement with Mr. Shaya Boymelgreen.

Assets' revaluation contributed a gross income of 2 billion NIS.

Profit from Rental and operation of properties reached 303 million
NIS representing a growth of 48% compared to the 205 million NIS in
2006.

Profit from the Industrial segment reached 117 million NIS. These
results were categorized as earnings from affiliated companies in
2006.

Net earnings from affiliated companies, reached 111 million NIS,
compared to 128 million NIS in 2006. These earnings do not include
Alon's Q4 results.

Operating profit after Capital Gains reached 6.1 million NIS
compared to 1.7 billion NIS in 2006.

Financial Highlights for the fourth quarter of 2007

Net profit reached 247 million NIS, compared to 412 million NIS in
Q4 2006.

The Company reported a loss from development, construction and
realization of assets of 359 million NIS mainly due to two reasons:
The financial results of Danya Cebus, the Construction and
Infrastructure subsidiary; Accounting adjustment related to the ending
of the joint venture agreement with Mr. Shaya Boymelgreen.

Assets' revaluation contributed a gross income of 1 billion NIS.

Profit from Rental and operation of properties reached 90 million
NIS representing a growth of 87% compared to the 48 million NIS in Q4
2006.

Profit from the Industrial segment reached 15 million NIS. These
results were not included in Q4 2006.

Net earnings from affiliated companies, reached 9 million NIS,
compared to 13 million NIS in Q4 2006.

Operating profit after Capital Gains reached 832 million NIS
compared to 622 million NIS in Q4 2006, an increase of 34%.

Recent Developments

-- On December 10th 2007, the Company announced it signed an
agreement for the sale of a 6 acre land plot in Miami which is
known as Block 42 for a total of $88.7 million. If and when
the transaction is completed, Africa Israel is expected to
report a pretax capital gain of $39 million.

-- On March 27th 2008, AFI Development announced its financial
results for the fourth quarter and annual results. In
addition, the Company issued an updated valuation conducted by
Jones Lang LaSalle showing a 16% increase in the portfolio's
value resulting in a 4.6% increase in the Company's NAV to 5.9
billion dollars, or 11.2 dollars per share.

Lev Leviev, Chairman of the Board of Africa Israel, mentioned:
"This was a record year for the Company in its net income. We
continued building our business and strength towards establishing our
position as a global leader in our field of activity. We identified a
number of markets where we see significant potential for us and made
new investments only after a comprehensive due diligence process.
Since the end of 2007 and the beginning of 2008, we are coping with
new challenges that arose from the vast changes in the international
business environment. I believe that our financial strength and proven
capabilities to act in a changing environment will enable the Company
to go through this period in the best possible way while identifying
new business opportunities created by current market conditions."

Nadav Grinshpon, Acting CEO of Africa Israel, mentioned: "This was
year in which we continued to strive to increase the Company's Net
Assets Value. Within this, we executed a number of substantial deals
in which we demonstrated our entrepreneurial spirit, financial
strength and our experience in managing global deals. Having said
that, we gave extra attention to expanding our activities only in
fields which we see as part of our core business. I'm happy to say
that we feel confident with since we managed to raise approximately
3.2 billion NIS since the beginning of the year and managed to
complete the financial closing for most of our projects in the US and
Europe. In regards to AFI Development, we believe that the company is
well positioned with its strong balance sheet and high liquidity which
will enable it to continue developing all projects as planned, while
searching for new opportunities in Russia and the CIS."

-0-
*T
Conference Call Scheduled for March 31, at 2:00 PM UK time

To participate, please call the following teleconferencing number:
----------------------------------------------------------------------
0-800-917-4613 (UK)
1-800-994-4498 (US)
+972-3-918-0688 (International)
03-918-0688 (Israel)

Monday, March 31, 2008
----------------------------------------------------------------------
9:00 a.m. EDT
2:00 p.m. UK
4:00 p.m. Israel Time
*T

This press release contains certain forward-looking statements
with respect to the Company's business, financial condition and
results of operations. These forward looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements,
including, but not limited to, fluctuations in product demand,
economic conditions as well as certain other risks detailed from time
to time in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated.

Africa Israel Investments Ltd.
Jacques Zimmerman, Attorney, 972-3-5393586
VP, Corporate Communications and Corporate Secretary
jacques@africa-israel.com
Ron Maor, 972-3-5393537
Senior VP Business Development
ronm@africa-israel.com
or
KM Investor Relations
Oded Ben Chorin, 972-3-5167620
Account Director
oded@km-ir.co.il

Copyright Business Wire 2008