Elbit Imaging Announces $200 Million Co-Investment Facility for Investment in the US Real Estate Market

PR Newswire

TEL AVIV, Israel, February 9

TEL AVIV, Israel, February 9 /PRNewswire-FirstCall/ — Elbit Imaging Ltd.
(NASDAQ: EMITF) ("Elbit") announced today that its subsidiary, Elbit Plaza
USA, L.P. ("Elbit Plaza USA") a real estate investment venture jointly formed
by Elbit and its subsidiary, Plaza Centers N.V. (LSE: PLAZ) (WSE:
PLAZ/PLAZACNTR) ("Plaza"), has entered into a framework and co-investment
agreement (the "Agreement") with Eastgate Property LLC, an affiliate of NCH
Capital Inc. (www.nchcapital.com), an established U.S. based international
real estate fund manager ("Eastgate").

Under the Agreement the parties have committed to co-invest in equal
portions a combined $200 million with a U.S. real estate investment fund that
will be jointly established by the parties with outside investors and which
will focus on investments in the U.S. retail and commercial real estate
sectors (the "Fund").

Eastgate shall take an active role in the joint management of the Fund
utilizing its long-standing experience in fund management activities in the
U.S.

The parties intend to take advantage of real estate opportunities in the
U.S., primarily in the retail and commercial sectors. The Agreement provides
that the parties will identify and locate potential investments during a
two-year period in which the Fund together with the co-investment facility
will acquire assets or enter into joint ventures with owners of relevant
assets or portfolios, with the objective of selling the Fund's assets or
holdings and dissolving the Fund within a five-to-seven-year period of the
initial closing of the Fund.

The Agreement is part of Elbit Plaza USA's efforts of securing capital
commitments totaling, together with Elbit Plaza USA's and Eastgate's
investments, approximately $400 million to be utilized in pursuit of the
Fund's investment program, enabling the funding of property acquisitions
valued at up to $1 billion taking into account potential leverage.

Motti Zisser, Executive President, commented: "The capital commitment in
the amount of $100million by Eastgate, a sophisticated real estate investor
with an impressive track record, clearly demonstrates its confidence in Elbit
Plaza US's ability to create value with respect to the proposed real estate
transactions in the U.S. We plan to raise additional capital commitments from
Israeli and foreign investors, some of which have already expressed an
interest to join the Fund."

Dudi Machluf, Chief Executive Officer (Co-CEO), commented: "Elbit Imaging
and Plaza Centers believe that the current financial crisis in the U.S. and
specifically in the real estate market has created a unique opportunity to
acquire interests in high quality operating properties generating net
operating income at very attractive valuations not seen in the recent past,
with a unique potential for significant appreciation.

Furthermore, we believe that, as the global and U.S. markets recover, the
Fund should be well positioned to deliver significant value on its
investments. We are confident that the expertise and experience gained by
Elbit Imaging and Plaza Centers in the real estate markets in general, and
the shopping malls and shopping and entertainment centers businesses in
particular, will help us to utilize to the fullest extent the promising
potential of those investments."

About Elbit Imaging Ltd.

The activities of Elbit Imaging Ltd. are divided into the following
principal fields: (i) Shopping and Entertainment Centers – Initiation,
construction, operation, management and sale of shopping and entertainment
centers and other mixed-use real property projects, predominantly in the
retail sector, located in Central and Eastern Europe and in India; (ii)
Hotels – Hotel ownership, operation, management and sale, primarily in major
European cities; (iii) Image Guided Treatment – Investments in the research
and development, production and marketing of magnetic resonance imaging
guided focused ultrasound treatment equipment; (vi) Residential Projects -
Initiation, construction and sale of residential projects and other mixed-use
real projects, predominantly residential, located in Eastern Europe and in
India; and (v) Other Activities – (a) The distribution and marketing of
fashion apparel and accessories in Israel; (b) venture capital investments;
and (c) investments in hospitals, and farm and dairy plants in India, which
are in the preliminary stages.

Any forward-looking statements in our releases include statements
regarding the intent, belief or current expectations of Elbit Imaging Ltd.
and our management about our business, financial condition, results of
operations, and its relationship with its employees and the condition of our
properties. Words such as "believe," "expect," "intend," "estimate" and
similar expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. Actual results
may differ materially from those projected, expressed or implied in the
forward-looking statements as a result of various factors including, without
limitation, the limited operating history of Elbit Plaza USA, the ability to
raise additional funds from investors, the ability to find suitable
investment opportunities, the ability to negotiate favorable investment
terms, the availability of financing on favorable terms, risks associated
with development projects, such as delays in construction and receipt of
approvals and permits for zoning and construction, dependence on key
personnel, reliance on partners and other third parties, competition,
environment risks, general economic conditions and the conditions of the U.S.
real estate market in particular, as well as the factors set forth in our
filings with the Securities and Exchange Commission including, without
limitation, Item 3.D of our annual report on Form 20-F for the fiscal year
ended December 31, 2008, under the caption "Risk Factors." Any forward-
looking statements contained in our releases speak only as of the date of
such release, and we caution existing and prospective investors not to place
undue reliance on such statements. Such forward-looking statements do not
purport to be predictions of future events or circumstances, and therefore,
there can be no assurance that any forward-looking statement contained our
releases will prove to be accurate. We undertake no obligation to update or
revise any forward-looking statements. All subsequent written or oral
forward-looking statements attributable to us or persons acting on our behalf
are expressly qualified in their entirety by the cautionary statements set
forth in our filings with the Securities and Exchange Commission including,
without limitation, Item 3.D of our annual report on Form 20-F for the fiscal
year ended December 31, 2008, under the caption "Risk Factors."

    For Further Information:

    Company Contact:
    Dudi Machluf
    Chief Executive Officer (Co-CEO)
    Tel: +972-3-6086024
    dudim@elbitimaging.com

    Investor Contact:
    Mor Dagan
    Investor Relations
    Tel: +972-3-516-7620
    mor@km-ir.co.il

SOURCE Elbit Imaging Ltd.

Contact

For Further Information: Company Contact: Dudi Machluf, Chief Executive Officer (Co-CEO), Tel: +972-3-6086024, dudim@elbitimaging.com; Investor Contact: Mor Dagan, Investor Relations: Tel: +972-3-516-7620, mor@km-ir.co.il