Alony-Hetz Properties & Investments Ltd.

RAMAT GAN, ISRAEL--(Marketwire - May 26, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Alony-Hetz Properties & Investments Ltd. ("Alony") (TASE:ALHE) announced that it has acquired ownership of 793,505 units ("Units") of Gazit America Inc. ("Gazit America"), with each Unit consisting of one common share (the "Common Shares") of Gazit America and one Common Share purchase warrant (the "Warrants"). The Units separated into Common Shares and Warrants immediately upon issue. Following this acquisition, Alony now owns or controls, 2,333,515 Common Shares, representing approximately 10.01% of the outstanding Common Shares of Gazit America, and 1,059,950 Warrants representing approximately 10.14% of the outstanding warrants of Gazit America.

Alony's acquisition of Units was made by way of its exercise of 1,587,010 Rights it acquired in a Rights offering made by Gazit America pursuant to a prospectus of Gazit America dated March 28, 2011. Every two Rights were exercisable for one Unit. The Common Shares comprising part of the Units were issued from treasury and the Warrants comprising part of the Rights were issued from treasury pursuant to a Warrant Indenture. No consideration was paid for the Rights received in the Rights offering. The Units (which separated into Common Shares and Warrants immediately upon issue) were acquired for $6.30 in cash and the exchange of two Rights.

The 793,505 Warrants acquired by Alony in its acquisition of Units are exercisable for Common Shares on a one-for-one basis at an exercise price of $7.50 up to and including April 14, 2014, and thereafter at an exercise price of $8.50 until expiry of the Warrants at 5:00 p.m. (Toronto time) on November 30, 2016, each subject to adjustment in certain events.

Nathan Hetz, the President and Chief Executive Officer of Alony, owns 18,900 Common Shares and no warrants of Gazit America. Alony, together with Nathan Hetz, owns or controls, 2,352,415 Common Shares, representing approximately 10.09% of the outstanding Common Shares of Gazit America.

Alony acquired the Units for investment purposes. Alony may, in the future, acquire additional Common Shares or additional Warrants or other securities of Gazit America from time to time in accordance with applicable laws and may from time to time in the future sell some or all of its holdings in the securities of Gazit America in accordance with applicable laws.