Elbit Imaging Ltd (EMITF)

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Elbit Medical Imaging Ltd. Announces Agreement for Additional Private Issuances of Series A and Series B Debentures in Israel

Wednesday March 8, 12:30 pm ET

TEL AVIV, Israel, March 8 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. ("EMI") (Nasdaq: EMITF - News), announced today that it had agreed with Israeli investors to issue approximately NIS 102 million aggregate principal amount of unsecured non-convertible Series A Debentures and approximately NIS 2 million aggregate principal amount of unsecured non-convertible Series B Debentures to investors in Israel. Such debentures would be in addition to the NIS 298 million in principal amount of Series A Debentures and NIS 57 million in principal amount of Series B Debentures, which were issued to Israeli investors in Israel on February 23, 2006. It is expected that the issuance of the new debentures will be completed tomorrow, March 9, 2006.

The newly issued debentures of each series and the previously issued debentures of the same series will be considered as one series for all purposes and have the same terms. The principal terms of the Series A and Series B Debentures were announced by EMI on February 21, 2006. As with the existing debentures, the debentures newly issued debentures will be listed for trade on the "Institutional Retzef" which is a trading system for institutional investors in Israel. The debentures from the two series will not initially be registered for trade on the Tel Aviv Stock Exchange or any other exchange, although EMI has undertaken to use its best efforts to register the two series of debentures for trade on the Tel Aviv Stock Exchange no later than August 30, 2006.

The Debentures will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not be deemed to be an offer to sell or a solicitation of an offer to buy any of these securities.

About Elbit Medical Imaging Ltd.

EMI is a subsidiary of Europe Israel (M.M.S.) Ltd. EMI's activities are divided into three principal fields: (i) ownership, operation, management, acquisition, expansion and development of commercial and entertainment malls in Europe, primarily in Eastern and Central Europe; (ii) ownership, operation, leasing, management, acquisition, expansion and development of hotels in major European cities and ownership, operation and management of a commercial and entertainment mall in Israel through its subsidiary, Elscint Ltd.; and (iii) research and development in the image guided focused ultrasound activities through its subsidiary, InSightec Ltd.

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