Blue Square - Israel Announces Progress With Regard to its Strategic Plan

ROSH HA'AYIN, Israel, October 23 /PRNewswire-FirstCall/ -- Blue Square -
Israel Ltd. (NYSE:BSI) (the "Company") announced today, further to its
announcement dated September 24, 2008, that as part of the process of
adoption of a new strategic plan, the Company intends to bring to approval of
the board of directors on October 28, 2008 major parts of a strategic plan,
which are expected to be launched during 2008.
The company's management intends to present for approval by the board of
directors the plan to establish by December 2008 a new hard discount store
format ("the HD format"). The HD format is expected to be comprised of
approximately 36-38 stores of various sizes, which are currently "Mega" and
"Shefa Shuk" brands stores operated by the Company and its subsidiary, Blue
Square Chain Investments & Properties Ltd. ("BSIP"), and which total
approximately 120,000 square meters (approximately 1/3 of the Company's
commercial space).
In the event the plan is approved by the board of directors, the Company
estimates that the costs of launching the HD format are expected to aggregate
approximately NIS 30 million during 2008 and 2009.
In addition to the establishment of the HD format, the board of directors
will be requested to approve the launch of a private label for the Company to
be expanded throughout the Company's store formats beginning on December
2008, with intention to broaden the variety of products offered under the
private label during 2009 and onwards.
There is no certainty that the above aspects of the plan will be approved
at the scheduled board meeting, and, if it is approved, what will be the
final form of the plan, including areas covered by the plan, the anticipated
costs of the plan and schedule for implementation of the plan. Moreover, if
the plan is approved, management cannot predict at this time what would be
its impact on the Company.
Further to the Company's announcement dated September 24, 2008 regarding
BSIP financial results estimates, BSIP's total sales in the nine months ended
September 30, 2008 were approximately NIS 3.191 billion, within the range of
the previous estimate, compared with sales of approximately NIS 3.125 billion
in the comparable period in 2007.
Blue Square-Israel Ltd. is a leading retailer in Israel. A pioneer of
modern food retailing, in the region. Blue Square currently operates 194
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 for the year ended
December 31, 2007.
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