Retalix Ltd. (RTLX)

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Hy-Vee On Target for Full Deployment of Retalix Point of Sale Application

Monday April 3, 3:00 am ET

Major Midwest Food and Drug Store Operator Enters Phase II of Chain-Wide Deployment and Reports Benefits of Retalix Store Platform

DALLAS, April 3 /PRNewswire-FirstCall/ -- Retalix® USA, (Nasdaq: RTLX - News), a provider of enterprise-wide software solutions to retailers and distributors worldwide, today announced that Hy-Vee, Inc., the 15th largest grocery retailer in the U.S. and operator of more than 220 stores throughout the Midwest, is entering Phase II of a planned chain-wide roll-out of the Retalix StoreLine(TM) Point of Sale (POS) and Fuel applications.

In Phase I of the deployment, over 2,500 POS lanes, representing 120 of Hy-Vee's supermarket and drug stores, and over 60 of the company's convenience/fuel stores have installed the Retalix solution. All of the company's "fuel-only" locations have already installed the system. Hy-Vee plans to complete the Phase II company-wide roll-out of its next generation retail platform within the next 12 months.

"Our relationship with Retalix has been outstanding. We had numerous choices when seeking to update our point-of-sale applications, and from the beginning it was clear that Retalix would provide the best solution," said John Briggs, CFO of Hy-Vee. "The system has provided many advantages, starting with hardware independence. In addition, the touch screens at the POS have greatly reduced cashier training time which also goes right to the bottom line savings. With Retalix we're able to have one system to support in both the store and gasoline businesses."

"In the rapidly changing grocery landscape, Retalix StoreLine's functionality and versatility partnered with the proven reliability of IBM hardware enables Hy-Vee to more effectively and efficiently service their customers," said Barry Shaked, President and CEO of Retalix Ltd. "Hy-Vee is a truly outstanding and innovative retailer and one of the largest grocery chains in North America, and we are honored to be working with them in this critical area of their business."

The Retalix StoreLine applications are designed to address grocery industry functionality requirements, including multi-format environments. In addition to POS, Retalix offers world-class fuel center support, foodservice kiosk, customer loyalty and integrated solutions throughout the supply chain, including back office, order optimization, merchandising, ERP and warehouse.

About Hy-Vee

Hy-Vee, Inc. is an employee-owned corporation operating 222 stores in seven Midwestern states. In fiscal year 2005 the company recorded total sales in excess of $4.9 billion, ranking it among the top 15 grocery chains according to "Progressive Grocer" magazine and the top 35 private companies in the United States.

Headquartered in Des Moines, Iowa, Hy-Vee's supermarkets are located throughout Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota and Minnesota. Hy-Vee also operates Drug Town drug stores in Iowa and Nebraska. Hy-Vee's combination food and drug centers reflect the changing lifestyles of today's consumers, with emphasis on freshness, variety and one-stop shopping convenience.

About Retalix Ltd.

Retalix is an independent provider of enterprise-wide software solutions to retailers and distributors worldwide. With more than 34,000 sites installed across 50 countries, Retalix solutions serve the needs of multi national grocery chains, convenience and fuel retailers, food service operators, food and consumer goods distributors and independent grocers. The Company offers a full portfolio of software applications that automate and synchronize essential retailing, distribution and supply chain operations, encompassing stores, headquarters and warehouses. Retalix develops and supports its software through more than 1,300 employees in its various subsidiaries and offices worldwide. The company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas. Retalix on the Web: www.retalix.com

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