Blue Square-Israel Ltd. Reschedules Shareholders Meeting

Business Wire, Sept 7, 2000

Business Editors

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

Following the announcement of Blue Square-Israel Ltd. (NYSE: BSI) dated August 24, 2000, Blue Square-Israel Ltd. ("the Company") announced that the Adjourned Extraordinary General Meeting of shareholders (the "AEGM") that was held on September 6, 2000 at 5 p.m. (Israel time) did not discuss or make any resolutions in reference to the matters specified in the proxy statement. The AEGM resolved to convene a new General Meeting of shareholders at a time and place to be decided by the Company and announced to the shareholders of the Company.

The Co-Op Blue Square Consumers' Cooperative's ("Co-Op"), which holds 78.1% of the Company's outstanding capital, which voted in favor of the above mentioned resolution, explained that the matters specified require additional review and consideration, including raising additional proposals before the General Meeting.

The Company will give notice of the General Meeting by Proxy.

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.