Israel, Sep. 14, 2009 (PRNewswire-FirstCall) -- Blue Square-Israel Ltd. (NYSE: BSI) ("Blue Square") announced today that it is informed by its parent company, Alon Israel Oil Company Ltd. ("Alon"), as follows:

1. On September 14, 2009, Alon and Africa Israel Trade and Agencies Ltd. ("Africa") have signed an agreement under which Africa shall sell and transfer to Alon its holdings in Alon (ordinary shares equal to 26.14% of Alon`s issued share capital) and as consideration, Alon shall sell and transfer to Africa shares of Alon USA Energy, Inc. ("Alon USA"), a subsidiary of Alon, and shall grant Africa an option to purchase from Alon shares of Dor Alon Energy In Israel (1988) Ltd., a subsidiary of Alon. The actual transfer of the shares and the closing of the transaction will be executed subject to the receipt of the required approvals under applicable law for the transfer of the shares, if required.

2. As a result of the completion of said transaction, the holdings in Alon (offsetting the dormant shares which shall be in the possession of Alon) shall be as follows:

Bielsol Investmens (1987) Ltd. ("Bielsol") together with the shares which are held by Mr. David Wiessman: approximately 53.1%.

Collective acquisition entities of Kibbutzim in Israel, represented by Delek Holdings (Established by the Kibbutz Organizations) Ltd. ("Delek Holdings"): approximately 46.9%.

Blue Square-Israel Ltd. is a leading retailer in Israel. A pioneer of modern food retailing, in the region. Blue Square currently operates 202 supermarkets under different formats, each offering varying levels of services and prices. For more information, please refer to the Blue Square-Israel Ltd. website at http://www.bsi.co.il.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, plans or projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events, results, performance, circumstance and achievements to be materially different from any future events, results, performance, circumstance and achievements expressed or implied by such forward-looking statements.