Blue Square Announces Initial Negotiations

ROSH HAAYIN, Israel, June 19 /PRNewswire-FirstCall/ -- Blue Square-Israel
Ltd. (NYSE: BSI) (hereinafter: "Blue Square") announced today in light of an
announcement by Rami Levy Shivuk Hashikma 2006 Ltd. ("Rami Levy") and reports
in the press, that Rami Levy had approached the controlling shareholder of
the company to check the possibility to acquire from the Company a number of
the Shefa Shuk stores which appeal to the ultra-orthodox community. The
controlling shareholder of the company was also approached by other retail
companies with regard to such a possible transaction. Following the approach
of Rami Levy, there are initial contacts between the parties to check the
possibility of such a transaction. The board of directors of the company did
not have any discussions yet with regard to such a possible transaction, no
agreement has been reached between the parties, and there is no guarantee
that such an agreement will in fact be reached.
Blue Square-Israel Ltd. is a leading retailer in Israel. A pioneer of
modern food retailing in the region. Blue Square currently operates 189
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 .

SOURCE Blue Square Israel Ltd

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 .