Elbit Imaging Ltd. Announces First Quarter Results for 2009

TEL AVIV, Israel, May 31 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI" or the "Company") today announced its results for the first quarter of 2009.

Gain for the first quarter of 2009 amounted to NIS 8.6 million, of which NIS 21 million is attributable to the equity holders of the Company compared with a loss of NIS 3.5 million and NIS 27.3 million, respectively, in the corresponding period of 2008.

Company's shareholder's equity, as of March 31, 2009 amounted NIS 2.6 billion, compared with NIS 2.4 billion as of December 31, 2008

Our presentation to the consolidated financial statements for the first quarter of 2009 is available through our website at: http://www.elbitimaging.com/ under: "Investor Relations - Company Presentations (03/2009)."

Mr. Shimon Yitzhaki, President and CEO of the Company, commented: "Our Group concludes a profitable quarter, despite the global credit crisis, mainly evident in the real estate and financial sectors. The impaired ability to finance projects affects both developers, who find it difficult to secure bank financing, and potential buyers, who face difficulties in obtaining financing to buy properties. The Elbit Imaging Group encountered the global credit crisis prepared to the best of its abilities, with high cash surpluses following a series of exits preformed prior to the global crisis. Plaza Centers has two active shopping centers which have been opened to the public in this quarter, one in Latvia and the other in the Czech Republic. These two shopping centers which are now operated by Plaza Centers, will generate a cash flow, until such time as they may be sold at an appropriate price. We estimate that the crisis creates opportunities for companies with financial capabilities, such as the Elbit Imaging Group, which we intend to examine carefully. We hope to find and exploit attractive opportunities and to emerge from the crisis strengthened and solid."

For Further Information:

Elbit Imaging Ltd. ("EI") is a subsidiary of Europe Israel (M.M.S.) Ltd. EI's activities are divided into the following principal fields: (i) Initiation, construction, operation, management and sale of shopping and entertainment centers in Israel, Central and Eastern Europe and India; (ii) Hotels ownership, primarily in major European cities, as well as operation, management and sale of same through its subsidiary, Elscint Ltd.; (iii) Investments in the research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment, through its subsidiary, InSightec Ltd.; and (iv) Other activities consisting of the distribution and marketing of women's fashion and accessories through our wholly-owned Israeli subsidiary, Elbit Trade & Retail Ltd., and venture-capital investments.

Any forward looking statements with respect to EI's business, financial condition and results of operations included in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, ability to find suitable locations, receipt of approvals and permits for zoning and construction, delays in construction, dependency on partners in the hotels business, competition, risks relating to operations in Eastern Europe and Asia (including India) and risks relating to our image guided treatment, economic conditions, as well as certain other risk factors which are detailed from time to time in EI's filings with the Securities and Exchange Commission including, without limitation, Annual Report on Form 20-F for the fiscal year ended December 31, 2007.

For Further Information: Company Contact Investor Contact Shimon Yitzhaki, President Mor Dagan Elbit Imaging Ltd. Investor Relations (972-3) 608-6000 Tel:[phone] [e-mail] [e-mail] Dudi Machluf, CFO Elbit Imaging Ltd. (972-3) 608-6024 [e-mail] ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS --------------------------- March 31, December 31, March 31, 2009 2008 2009 ---------- ------------ ---------- Convenience translation ----------- (in thousand NIS) US$'000 ----------------- ------- Current Assets Cash and cash equivalents 1,566,738 1,690,433 374,102 Short-term deposits and investments 405,758 408,719 96,886 Trade accounts receivable 44,117 34,740 10,534 Other receivable 172,533 134,194 41,197 Prepayments and other assets 406,431 404,613 97,047 Inventories 47,930 38,176 11,445 Trading property 3,932,896 3,279,775 939,087 --------- --------- ------- 6,576,403 5,990,650 1,570,298 Assets related to discontinued operation 9,127 9,043 2,179 --------- --------- --------- 6,585,530 5,999,693 1,572,477 --------- --------- --------- Non-Current Assets Deposits, loans and other long-term balances 727,847 783,568 173,794 Investments in associates 48,636 46,655 11,613 Property, plant and equipment 1,671,983 1,618,253 399,232 Investment property 82,752 78,897 19,759 Other assets and deferred expenses 125,460 118,064 29,956 Intangible assets 47,796 46,582 11,413 --------- --------- ------- 2,704,474 2,692,019 645,767 --------- --------- ------- --------- --------- --------- 9,290,004 8,691,712 2,218,244 ========= ========= ========= Current Liabilities Short-term credits 1,640,257 1,255,018 391,656 Suppliers and service providers 208,776 214,461 49,851 Payables and other credit balances 238,326 217,704 56,907 Other liabilities 110,596 105,246 26,408 --------- --------- ------- 2,197,955 1,792,429 524,822 Liabilities related to discontinued operation 31,353 29,186 7,486 --------- --------- ------- 2,229,308 1,821,615 532,308 --------- --------- ------- Non-Current liabilities Borrowings 4,248,232 4,258,639 1,014,383 Other financial liabilities 122,951 93,121 29,358 Other liabilities 15,562 15,440 3,716 Deferred taxes 79,385 65,114 18,955 --------- --------- --------- 4,466,130 4,432,314 1,066,412 --------- --------- --------- Shareholders' Equity Attributable to equity holders of the Company 1,507,630 1,373,692 359,988 Minority Interest 1,086,936 1,064,091 259,536 --------- --------- ------- 2,594,566 2,437,783 619,524 --------- --------- ------- --------- --------- --------- 9,290,004 8,691,712 2,218,244 ========= ========= ========= ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS ------------------------------ Three months Year ended Three months ended March 31 December 31, ended March 31 --------------- ------------- --------------- 2009 2008 2008 2009 ---- ---- ---- ---- Convenience translation ----------- (in thousand NIS) US$'000 ----------------- ------- Revenues and gains Commercial centers (1) 20,103 73,708 524,163 4,800 Hotels operations and management 87,017 91,888 384,220 20,778 Sale of medical systems 8,561 11,390 38,076 2,044 Change in shareholding of subsidiaries 78,258 - 49,122 18,686 Sale of fashion merchandise 21,908 18,173 102,736 5,231 ------ ------ ------- ----- 215,847 195,159 1,098,317 51,539 ------- ------- --------- ------ Expenses and losses Commercial centers (1) 39,696 40,806 432,760 9,479 Hotels operations and management 83,468 81,626 354,850 19,930 Cost and expenses of medical systems operation 17,145 14,983 55,469 4,094 Cost of fashion merchandise 28,228 22,697 118,040 6,740 Research and development expenses 16,642 16,166 68,759 3,974 General and administrative expenses 17,593 8,551 54,944 4,201 Share in losses of associates, net 4,243 2,318 12,952 1,013 Financial expenses (income), net (22,618) 12,113 (63,995) (5,400) Other expenses, net 7,172 (1,854) 68,797 1,713 ------- ------- --------- ------ 191,569 197,406 1,102,576 45,744 ------- ------- --------- ------ Profit (loss) before income taxes 24,278 (2,247) (4,259) 5,795 Income taxes 13,841 3,055 24,736 3,305 ------ ----- ------ ----- Profit (loss) from continuing operations 10,437 (5,302) (28,995) 2,490 Profit (loss) from discontinued operation, net (1,780) 1,754 4,934 (425) ------ ----- ----- ----- Profit (loss) for the period 8,657 (3,548) (24,061) 2,065 ===== ====== ======== ===== Attributable to: Equity holders of the Company 20,994 (27,348) (103,714) 5,012 Minority interest (12,337) 23,800 79,653 (2,947) ------ ------- -------- ----- 8,657 (3,548) (24,061) 2,065 ===== ======= ======== ===== (1) Sale of trading property and investment property operations ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS -------------------------------------------- Three months Year ended Three months ended March 31, December 31, ended March 31, ---------------- ------------- ---------------- 2009 2008 2008 2009 ---- ---- ---- ---- Convenience translation ----------- (in thousand NIS) US$'000 ----------------- ------- Profit (loss) for the period 8,657 (3,548) (24,061) 2,065 ----- ------ -------- ----- Exchange differences arising from translation of foreign operations 179,811 (102,464) (453,305) 42,935 Loss from cash flow hedge (9,869) (6,914) (49,970) (2,356) Loss from available for sale investments (7,550) - (5,929) (1,803) ------- --------- --------- ------ 162,392 (109,378) (509,204) 38,776 ------- -------- --------- ------ Comprehensive income (loss) 171,049 (112,926) (533,265) 40,841 ======= ========= ========= ====== Attributable to: Equity holders of the Company 130,772 (120,054) (508,007) 31,224 Minority interest 40,277 7,128 (25,258) 9,617 ------ ----- -------- ----- 171,049 (112,926) (533,265) 40,841 ======= ======== ========= ====== ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------- Foreign currency Share Share translation Hedging Capital premium adjustments reserves (In thousand NIS) ----------------- Balance - January 1, 2008 38,032 815,275 45,872 12,848 Comprehensive income (loss) - - (350,242) (49,970) Dividend paid - - - - issuance of shares to the minority by a subsidiary - - - - Repayment of loans as a result of the realization by employees of rights to shares - - - - Stock based compensation expenses - - - - Dividend to the minority - - - - Purchase of the minority interest - - - - Employee share premium - 16 - - December 31, 2008 38,032 815,291 (304,370) (37,122) Comprehensive income (loss) - - 125,286 (9,869) Stock based compensation expenses - - - - Initially consolidated subsidiary - - - - issuance of shares to the minority by a subsidiary - - - - Purchase of the minority interest - - - - March 31, 2009 38,032 815,291 (179,084) (46,991) ====== ======= ========= ======== Available Stock base for sale compensation Retained Gross Treasury reserve reserve earnings Amount stock (In thousand NIS) ----------------- Balance - January 1, 2008 - 32,909 1,232,399 2,177,335 (138,519) - - Comprehensive income (loss) (4,081) - (103,714) (508,007) - Dividend paid - - (168,064) (168,064) - issuance of shares to the minority by a subsidiary - - - - - Repayment of loans as a result of the realization by employees of rights to shares - - - - - Stock based compensation expenses - 10,931 - 10,931 - Dividend to the minority - - - - - Purchase of the minority interest - - - - - Employee share premium - - - 16 - December 31, 2008 (4,081) 43,840 960,621 1,512,211 (138,519) Comprehensive income (loss) (5,639) - 20,994 130,772 - Stock based compensation expenses - 3,166 - 3,166 - Initially consolidated subsidiary - - - - - issuance of shares to the minority by a subsidiary - - - - - Purchase of the minority interest - - - - - March 31, 2009 (9,720) 47,006 981,615 1,646,149 (138,519) ======= ====== ======= ========= ========= Loans to Total amount employees attributable to acquire to equity Total Company holders of Minority shareholders' Shares the Company Interest equity (In thousand NIS) ----------------- Balance - January 1, 2008 (3,378) 2,035,438 1,193,564 3,229,002 - - Comprehensive income (loss) - (508,007) (25,258) (533,265) Dividend paid - (168,064) - (168,064) issuance of shares to the minority by a subsidiary - - 5,860 5,860 Repayment of loans as a result of the realization by employees of rights to shares 3,394 3,394 - 3,394 Stock based compensation expenses - 10,931 56,163 67,094 Dividend to the minority - - (97,770) (97,770) Purchase of the minority interest - - (68,468) (68,468) Employee share premium (16) - - - December 31, 2008 - 1,373,692 1,064,091 2,437,783 Comprehensive income (loss) - 130,772 40,277 171,049 Stock based compensation expenses - 3,166 13,901 17,067 Initially consolidated subsidiary - - 5,993 5,993 issuance of shares to the minority by a subsidiary - - 61,141 61,141 Purchase of the minority interest - - (98,467) (98,467) March 31, 2009 - 1,507,630 1,086,936 2,594,566 = ========= ========= ========= ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------- Cumulative Foreign currency Share Share translation Hedging Capital premium adjustments reserves Convenience translation US$'000 ------------------------------- December 31, 2008 9,081 194,673 (72,677) (8,864) Comprehensive income (loss) - - 29,916 (2,357) Stock based compensation expenses - - - - Initially consolidated subsidiary - - - - issuance of shares to the minority by a subsidiary - - - - Purchase of the minority interest - - - - March 31, 2009 9,081 194,673 (42,761) (11,221) ===== ======= ======== ======== Available Stock base for sale compensation Retained Gross Treasury reserve reserve earnings Amount stock Convenience translation US$'000 ------------------------------- December 31, 2008 (974) 10,468 229,375 361,082 (33,075) Comprehensive income (loss) (1,347) - 5,012 31,224 - Stock based compensation expenses - 757 - 757 - Initially consolidated subsidiary - - - - - issuance of shares to the minority by a subsidiary - - - - - Purchase of the minority interest - - - - - March 31, 2009 (2,321) 11,225 234,387 393,063 (33,075) ======= ====== ======= ======= ======== Loans to Total amount employees attributable to acquire to equity Total Company holders of Minority shareholders' Shares the Company Interest equity Convenience translation US$'000 ------------------------------- December 31, 2008 - 328,007 254,081 582,088 Comprehensive income (loss) - 31,224 9,617 40,841 Stock based compensation expenses - 757 3,319 4,076 Initially consolidated subsidiary - - 1,431 1,431 issuance of shares to the minority by a subsidiary - - 14,599 14,599 Purchase of the minority interest - - (23,511) (23,511) March 31, 2009 - 359,988 259,536 619,524 = ======= ======= =======

Elbit Imaging Ltd.

CONTACT: Shimon Yitzhaki, President, [phone], or
[e-mail], Dudi Machluf, CFO, [phone], or
[e-mail], both of Elbit Imaging Ltd.; Mor Dagan, Investor
Relations for Elbit Imaging Ltd., [phone], or [e-mail]

Web Site: http://www.elbitimaging.com/