Elbit Imaging Ltd. Announces Third Quarter Results for 2009

TEL AVIV, Israel, November 26 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI" or the "Company") today announced its results for the third quarter of 2009.

Loss for the third quarter of 2009 amounted to NIS 155 million, of which NIS 144 million is attributable to the equity holders of the Company as compared to NIS 72 million in the corresponding quarter of 2008 of which NIS 85.5 million is attributable to the equity holders of the Company.

Company's shareholder's equity, as of September 30, 2009 amounted NIS 2.2 billion, compared with NIS 2.4 billion as of December 31, 2008

Our presentation to the consolidated financial statements for the third quarter of 2009 is available through our website at: http://www.elbitimaging.com/ under: "Investor Relations - Company Presentations (09/2009)."

Mr. Shimon Yitzhaki, President and CEO of the Company, commented: "During the third quarter of 2009, we continued to develop our activities in all sectors. In the real estate business, we are adjusting the development of our projects to market conditions and financing possibilities. Since financing market are scarce in this period, both entrepreneurs and buyers of real estate projects facing difficulties when trying to secure financing for the development of their real estate projects or for the purchase of such assets.

The Group's business model is based primarily on the development of yielding properties and realization thereof at high margin yields. Therefore, in periods in which, there are no opportunities to realize our real estate assets at appropriated yields, we will hold these assets and will generate cash flows from their operations.

In addition, we are investing great efforts to source high-quality shopping centers in the U.S. that will meet our criteria. We believe that this sector is highly attractive for companies with financial capabilities and know-how, such as the Elbit Imaging Group and we hope that we will be able to secure these opportunities. We believe that our engines growth in the medium- long term is the commercial centers and residential sectors in India, and therefore we are investing our best efforts in order to develop these sectors.

ELBIT IMAGING LTD. CONSOLIDATED BALANCE SHEETS September September December September 30, 2009 30, 2008 31 , 2008 30, 2009 Convenience translation (in thousand NIS) US$'000 Current Assets Cash and cash equivalents 1,474,747 1,983,093 1,690,433 392,429 Short-term deposits and investments 405,910 350,157 408,719 108,012 Trade accounts receivable 52,044 35,288 34,740 13,849 Other receivable 139,375 138,906 134,194 37,088 Prepayments and other assets 368,053 78,527 404,613 97,939 Inventories 47,111 37,860 38,176 12,536 Trading property 4,146,754 2,468,864 3,279,775 1,103,446 6,633,994 5,092,695 5,990,650 1,765,299 Assets related to discontinued operation 9,102 10,507 9,043 2,422 6,643,096 5,103,202 5,999,693 1,767,721 Non-Current Assets Deposits, loans and other long-term balances 684,473 829,200 783,568 182,138 Investments in associates 47,004 50,602 46,655 12,508 Property, plant and equipment 1,651,212 1,650,193 1,618,253 439,386 Investment property 80,234 643,830 78,897 21,350 Other assets and deferred expenses 131,587 129,550 118,064 35,015 Intangible assets 46,697 46,190 46,582 12,426 2,641,207 3,349,565 2,692,019 702,823 9,284,303 8,452,767 8,691,712 2,470,544 Current Liabilities Short-term credits 1,162,400 536,216 1,255,018 309,314 Suppliers and service providers 200,517 220,277 214,461 53,357 Payables and other credit balances 231,708 330,241 217,704 61,657 Other liabilities 115,208 104,589 105,246 30,657 1,709,833 1,191,323 1,792,429 454,985 Liabilities related to discontinued operation 29,208 26,874 29,186 7,772 1,739,041 1,218,197 1,821,615 462,757 Non-Current liabilities Borrowings 5,199,299 4,753,674 4,258,639 1,383,528 Other financial liabilities 117,279 73,283 93,121 31,208 Other liabilities 15,088 11,707 15,440 4,015 Deferred taxes 44,001 40,703 65,114 11,709 5,375,667 4,879,367 4,432,314 1,430,460 Shareholders' Equity Attributable to equity holders of the Company 1,135,928 1,295,773 1,373,692 302,270 Minority Interest 1,033,667 1,059,430 1,064,091 275,057 2,169,595 2,355,203 2,437,783 577,327 9,284,303 8,452,767 8,691,712 2,470,544 ELBIT IMAGING LTD. CONSOLIDATED INCOME STATEMENTS Nine months Three months Year Nine ended ended ended months September 30 September 30 December Ended 31 2009 2008 2009 2008 2008 2009 Conven ience trans lation (in thousand NIS) (in thousand NIS) US$'000 Revenues and gains Commercial centers 60,251 442,442 18,351 16,068 524,163 16,033 Hotels operations and management 284,896 284,467 95,977 94,247 384,220 75,811 Sale of medical systems 34,067 33,072 9,549 4,158 38,076 9,065 Change in shareholding of subsidiaries 78,258 - - - 49,122 20,824 Sale of fashion merchandise 80,579 70,602 30,804 24,633 102,736 21,442 538,051 830,583 154,681 139,106 1,098,317 143,175 Expenses and losses Commercial centers 131,046 360,860 42,657 41,654 432,760 34,871 Hotels operations and management 258,868 264,703 83,503 98,016 354,850 68,884 Cost and expenses of medical systems operation 48,697 41,987 15,402 12,730 55,469 12,958 Cost of fashion merchandise 92,747 84,591 36,035 30,931 118,040 24,680 Research and devel opment expenses 51,779 52,100 18,421 18,321 68,759 13,778 General and admini strative expenses 48,331 41,002 14,480 13,658 54,944 12,861 Share in losses of associates, net 9,518 8,339 2,008 519 12,952 2,533 Financial expenses (income), net 219,041 (1,463) 52,080 (6,924) (63,995) 58,287 Other expenses, net 100,928 2,802 40,200 3,736 68,797 26,857 960,955 854,921 304,786 212,6411,102,576 255,709 Loss before income taxes (422,904) (24,338)(150,105) (73,535) (4,259)(112,534) Income taxes (tax benefits) (24,297) (1,824) 5,735 (1,553) 24,736 (6,465) Loss from conti nuing operations (398,607) (22,514)(155,840) (71,982)(28,995)(106,069) Profit (loss) from discontinued operation, net 203 2,681 742 (311) 4,934 54 Loss for the period (398,404) (19,833)(155,098) (72,293)(24,061)(106,015) Attributable to: Equity holders of the Company (330,451) (97,102)(144,304) (85,509)(103,714)(87,933) Minority interest (67,953) 77,269 (10,794) 13,216 79,653 (18,082) (398,404) (19,833)(155,098) (72,293)(24,061)(106,015) (1) Sale of trading property and investment property operations ELBIT IMAGING LTD. CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS Nine months ended Three months ended Year Nine September 30 September 30 ended months ended December September 31, 30 2009 2008 2009 2008 2008 2009 Convenience translation (in thousand NIS) (in thousand NIS) US$'000 Loss for the period (398,404) (19,833) (155,098) (72,293) (24,061) (106,015) Exchange differences arising from translation of foreign operations 89,603 (633,689) (53,189) (234,264) (453,305) 23,843 Gain from cash flow hedge (3,892) (5,187) (4,291) (20,525) (49,970) (1,036) Loss (gain) from available for sale investments 8,389 (2,804) 7,812 (2,804) (5,929) 2,233 94,100 (641,680) (49,668) (257,593) (509,204) 25,040 Comprehensive Loss (304,304) (661,513) (204,766) (329,886) (533,265) (80,975) Attributable to: Equity holders of the Company (268,549) (582,825) (181,243) (273,677) (508,007) (71,461) Minority interest (35,755) (78,687) (23,523) (56,209) (25,258) (9,514) (304,304) (661,513) (204,766) (329,886) (533,265) (80,975) ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Foreign currency Avaialable Stock Share Share translation Hedging for sale base Capital premium adjustments reserves reserve compen sation reserve (In thousand NIS) Balance - January 1, 2008 38,032 815,275 45,872 12,848 - 32,909 Comprehensive Loss - - (350,242) (49,970) (4,081) - 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 - - - - - 10,931 Dividend to the minority - - - - - - Purchase of the minority interest - - - - - - Employee share premium - 16 - - - - December 31, 2008 38,032 815,291 (304,370) (37,122) (4,081) 43,840 Comprehensive income (loss) - - 59,592 (3,892) 6,203 - Stock based compensation expenses - - - - - 11,508 Initialy consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - - - Exercise of shares by employees 6 605 - - - (611) Equity componenet of convertiable debentures - 19,277 - - - - Purchase of the minority interest - - - - - - September 30, 2009 38,038 835,173 (244,778) (41,014) 2,122 54,737 Loans to employees Total to amount acquire attribut Retained Gross Treasury Company able to earnings Amount stock Shares equity holders of the Company (In thousand NIS) Balance - January 1, 2008 1,232,399 2,177,335 (138,519) (3,378) 2,035,438 Comprehensive Loss - - Dividend paid (103,714) (508,007) - - (508,007) issuance of shares to the minority by a subsidiary (168,064) (168,064) - - (168,064) Repayment of loans as a result of the realization by employees of rights to shares - - - - - Stock based compensation expenses - - - 3,394 3,394 Dividend to the minority - 10,931 - - 10,931 Purchase of the minority interest - - - - - Employee share premium - - - - - December 31, 2008 - 16 - (16) - 960,621 1,512,211 (138,519) - 1,373,692 Comprehensive income (loss) Stock based compensation expenses (330,452) (268,549) - - (268,549) Initialy consolidated subsidiary - 11,508 - - 11,508 issuance of shares to the minority by a subsidiary - - - - - Exercise of shares by employees - - - - - Equity componenet of convertiable debentures - - - - - Purchase of the minority interest - 19,277 - - 19,277 September 30, 2009 - - - - - 630,169 1,274,447 (138,519) - 1,135,928 Total Minority shareholders' Interest equity Balance - January 1, 2008 1,193,564 3,229,002 Comprehensive Loss - Dividend paid (25,258) (533,265) issuance of shares to the minority by a subsidiary - (168,064) Repayment of loans as a result of the realization by employees of rights to shares 5,860 5,860 Stock based compensation expenses - 3,394 Dividend to the minority 56,163 67,094 Purchase of the minority interest (97,770) (97,770) Employee share premium (68,468) (68,468) December 31, 2008 - - 1,064,091 2,437,783 Comprehensive income (loss) Stock based compensation expenses (35,755) (304,304) Initialy consolidated subsidiary 31,681 43,189 issuance of shares to the minority by a subsidiary 5,993 5,993 Exercise of shares by employees 66,123 66,123 Equity componenet of convertiable debentures - Purchase of the minority interest 19,277 September 30, 2009 (98,466) (98,466) 1,033,667 2,169,595 ELBIT IMAGING LTD. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Cumulative Foreign currency Avaialable Stock Share Share translation Hedging for sale base Capital premium adjustments reserves reserve compen Convenience sation translation reserve US$'000 December 31, 2008 10,120 216,948 (80,992) (9,878) (1,086) 11,666 Comprehensive income (loss) - - 15,857 (1,036) 1,651 - Stock based compensation expenses - - - - - 3,063 Initialy consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - - - Exercise of shares by employees 2 161 - - - (163) Equity componenet of convertiable debentures - 5,130 - - - - Purchase of the minority interest - - - - - - September 30, 2009 10,122 222,239 (65,135) (10,914) 565 14,566 Loans to employees Total to amount acquire attributable Retained Gross Treasury Company to equity earnings Amount stock Shares holders of the Company December 31, 2008 255,620 402,398 (36,860) - 365,538 Comprehensive income (loss) (87,933) (71,461) - - (71,461) Stock based compensation expenses - 3,063 - - 3,063 Initialy consolidated subsidiary - - - - - issuance of shares to the minority by a subsidiary - - - - - Exercise of shares by employees - - - - - Equity componenet of convertiable debentures - 5,130 - - 5,130 Purchase of the minority interest - - - - - September 30, 2009 167,687 339,130 (36,860) - 302,270 Total Minority shareholders' Interest equity December 31, 2008 283,154 648,692 Comprehensive income (loss) (9,514) (80,975) Stock based compensation expenses 8,429 11,492 Initialy consolidated subsidiary 1,595 1,595 issuance of shares to the minority by a subsidiary 17,595 17,595 Exercise of shares by employees - - Equity componenet of convertiable debentures - 5,130 Purchase of the minority interest (26,202) (26,202) September 30, 2009 275,057 577,327 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 Shimon Yitzhaki, President Elbit Imaging Ltd. [phone] [e-mail] Dudi Machluf, CFO Elbit Imaging Ltd. [phone] [e-mail] Investor Contact Mor Dagan Investor Relations Tel:[phone] [e-mail]

Elbit Imaging Ltd.

CONTACT: For Further Information: Company Contact: Shimon Yitzhaki,
President , Elbit Imaging Ltd., [phone], [e-mail];
Dudi Machluf, CFO, Elbit Imaging Ltd., [phone],
[e-mail]; Investor Contact, Mor Dagan, Investor Relations,
Tel:[phone], [e-mail]