David Brodet Named Chairman of Blue Square-Israel

Business Wire, Sept 7, 2000

Business Editors

ROSH HA'AYIN, Israel--(BUSINESS WIRE)--Sept. 7, 2000

The Board of Directors of Blue Square-Israel Ltd. (NYSE: BSI) announced today that it has appointed David Brodet to serve as a Director and as Acting Chairman, effective immediately. Mr. Brodet replaces Benjamin (Benny) Gaon, who served as the Company's Acting Chairman from December 1999 until he resigned from the Board of Directors in August 2000.

Mr. Brodet has occupied key governmental positions in the Israeli economy. David Brodet served as the Director General of the Israeli Ministry of Finance between 1995 and 1997. He previously (1991-1995) held the position of State Budgets Director in the Ministry of Finance. Mr. Brodet was the Chief Israeli Negotiator of the Paris Economic Agreement with the P.L.O. (1993-1994). For a period of four years (1987-1991), Mr. Brodet served as the Vice President (CFO) of the Israel Aircraft Industries. In addition, he headed the Economic Stabilization Program (1984-1987) in the Israeli Ministry of Trade.

Currently, Mr. Brodet is Chairman of the Board of Yes (DBS Satellite Service) and Chairman of the Advisory Board of APAX Funds (Equity Fund), positions he has held since 1999. He previously (1998-2000) chaired the Board of WIS (Space). Between 1997-1998 David Brodet was Chairman of the Board of the United Mizrahi Bank, as well as Chairman of the Board of Tefahot, which is the largest mortgage bank in Israel.

Mr. Brodet is a member of the board of directors in numerous leading organizations that participate in a wide spectrum of financial, economic, academic and civic activities. Since 1999, he has been on the Board of Directors at Teva and Amanat. Mr. Brodet chairs the Board of Directors of the Jerusalem Foundation, the University Hospital of Hadassah, the Executive Committee of Ben-Gurion University and the Falk Institute. In addition, he is a member of the Directorate of the Florsheim Institute for Policy (since 1989) and the Chairman of the Advisory Board of Hadassah College of Technology in Jerusalem (since 1986).

Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region. Blue Square currently operates 167 supermarkets under different formats, each offering varying levels of services and pricing. For more information, please refer to Blue Square's website at www.coop,.co.il.

The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of the Company, the occurrence of which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constraints, 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 Security and Exchange Commission, particularly the prospect to its public offering in July, 1996.