Gadi Lesin, President & CEO of Strauss Group, and Todd Morgan, CEO of Strauss Coffee, Announced Today Further Expansion of Strauss Coffee, Which Acquired the Businesses of LeCafe in Russia

TEL AVIV, Israel, November 28, 2010 -

    - This Transaction Includes Whole Ownership (100%) of LeCafe
      Brand and Partnership (51%) in LeCafe Group's Real Estate, Including a
      Logistics Center, Offices and an Area Where Strauss Coffee Plans to
      Build a new, Wholly-owned R&G Coffee Plant

    - Investment in this Transaction Totals $43 Million

Gadi Lesin, President & CEO of Strauss Group, said today:
"Strauss Group is today completing another phase in the expansion and
enhancement of its competitive position in the Russian coffee market which is
considered to be one of the largest in the world. This acquisition takes us
to the next level in our growth strategy in Russia, an area that has
presented growth over the past four years. It follows several acquisitions
conducted by the company in recent years along with steady organic growth,
which have all transformed Strauss Coffee Russia from a $20 million company
(at the end of 2007) to a $160 million company, post-acquisition."

(Logo:
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Todd Morgan, CEO of Strauss Coffee, said today: "This acquisition
will enable us to enhance our position as the number 3 instant coffee
playerand number 2 R&G coffee player in Russia. We will do so by
strengthening our portfolio with a familiar brand, gainingmore market shares
and increasing our shelf space significantly."

About the transaction:

Strauss Group is announcing today that its subsidiary Strauss
Coffee B.V. (74.9%) has acquired the LeCafebrand sold in Russia and CIS.
Gross revenues of the brand stood at $23 million in 2009 and at $16 million
by the end of September 2010.

Strauss Coffee will pay USD 37 million for the brand. The
consideration will be paid on the transfer date of ownership to Strauss
Coffee.

Additionally, Strauss Coffee acquired 51% of LeCafe Group
shares for USD 6 million. LeCafe is the owner of real estate such as
buildings and warehouses that will serve as a logistics center for Strauss's
activity in Russia, and as an area where Strauss Coffee will set up a
wholly-owned R&G coffee plant.LeCafe also engages in the sale of non-branded
instant coffee in Russia and CIS.

Strauss Coffee plans to invest USD 6 million in the
construction of the plant in 2011 and 2012.

The transaction and construction of the plant will be funded
by Strauss Coffee.

About Strauss Coffee of the Strauss Group

One of five companies affiliated with Strauss Group and
operating in CEE, Brazil and Israel, Strauss Coffee is currently the
fifth-largest coffee company in the world in terms of green coffee
procurement volumes and one of the world's fastest growing coffee companies
over the past five years.

Strauss Coffee employs 6,000 people, and its turnover totaled
NIS 3.35 billion at the end of 2009.

Strauss Coffee's activities focus on the R&G (Roast & Ground)
sector, and it also produces and markets instant coffee. The company also
engages in coffee related products, providing coffee solutions to both the
in-home and away from home markets, including coffee shops, restaurants,
hotel and offices.

The Company enjoys a leading position in the coffee markets
where it operates,

To visit at our website: www.strauss-group.com

    For additional information:

    Media Contact
    Osnat Golan
    VP Communications
    Strauss Group Ltd.
    Tel +972-3-6752281
    Mob +972-52-8288111
    Email: osnat.golan@strauss-group.com
    www.strauss-group.com

    Investors Contact
    Yaffa Cohen-Ifrah
    Director of Investor Relations
    Strauss Group Ltd.
    Tel: +972-3-6752545
    Mob +972-54-5772195
    Email: yaffa.cohen-ifrah@strauss-group.com
    www.strauss-group.com

Photo:
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For additional information: Media Contact: Osnat Golan, VP Communications, Strauss Group Ltd., Tel +972-3-6752281, Mob +972-52-8288111, Email: osnat.golan at strauss-group.com; Investors Contact: Yaffa Cohen-Ifrah, Director of Investor Relations, Strauss Group Ltd., Tel: +972-3-6752545, Mob +972-54-5772195, Email: yaffa.cohen-ifrah at strauss-group.com