Yom-Tov Samia, President and COO of the Baran Group Ltd., Announced That He Ends His Term of Office; Baran Group Ltd. Reports Second Quarter 2003 Financial Results

Business Wire, August 29, 2003

Positive Cash Flow

Baran's cash flow from current operations improved from negative $8.8 million in the three months ended June 30, 2002 to positive $ 8.3 million in the three mounts ended June 30, 2003.

Subsequent Events

On August 8, 2003 Carmel Desalination Ltd., which is equally held (33.33%) by the Company, Dor Chemicals Ltd. and Ionics Inc,. has executed an agreement according to which Dor Chemicals Ltd. transferred its rights in Carmel Desalination Ltd. to Baran Group Ltd.- 50% and to Ionics Inc.- 50%. Following the transfer of the rights by Dor Chemicals, Baran Group' Ltd. share in Carmel Desalination Ltd. shall be - 50%, as well as Ionics' Inc. share in Carmel Desalination Ltd. shall be - 50%. The cost of the desalination facility's construction is approximately 100 million dollars.

On July 30, 2003 the Company announced that as part of a settlement, which will be submitted to court, a consortium, which is composed of the Company (50%) and Ionics Inc. (50%), will be announced by Mekorot The Water Company Ltd. (the Israeli National Water Company), as an exclusive winner of a tender to the construction of a water desalination facility in Ashdod, Israel. The Project will be erected on a "Turn Key" basis and its construction estimated cost is approximately 95 million dollars. The construction of the Project shall be completed within approximately two years.

On July 4, 2003 BMD Partnership (of which 1/3rd is held by the Company) was awarded the exclusive right to negotiate the performance of a bid for the construction and operation in Romania of a 12 km, four lanes and four bridges highway. The construction of the project in Romania shall be accomplished within approximately two years and BMD will be granted the right to operate the project in Romania for ten years. The estimated cost of the project in Romania is approximately 25 million Euro and the expected income is approximately 46 million Euro, during 10 years.

The income from the above mentioned subsequent events will not be reflected in the financial statement of the year 2003.

About the Baran Group

The Baran Group, Ltd. is a global provider of engineering, technology and construction solutions. The Company provides full-service, turnkey engineering and constructing services to a broad range of industries through five professional divisions: communications, industry, civil engineering, semiconductors, and technology and services. Baran specializes in handling complex and challenging projects, offering creative and unconventional solutions, and customizing projects to clients' real needs. Baran's services include feasibility & planning, detailed engineering, procurement, project management, facility management, and construction management.

For more information about the Baran Group, visit www.barangroup.com.

The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, consumer spending levels, adverse weather conditions and other factors could cause actual results to differ materially from the Company's expectations.