70 years since our pioneering entry into Israels dynamic retail market, Blue
Square continues to innovate with new marketing concepts, state-of-the-art
technologies and best-value products and services.

Over the past decade, Israels retail food market has become much larger, more
competitive and professional. Blue Square has led the way, leveraging its deep
market understanding to drive change in the design of its brands, store formats,
product mix and services. The foundation of its policies, however, remains
consistent: the pursuit of total customer satisfaction; innovation to improve the
shopping experience; expanded penetration of existing and new markets; and
pursuit of efficiency in all operations. These policies have succeeded in creating
significant value for the Companys shareholders in the past, and Management is
committed to continuing to increase sales and operating profit steadily in the future.