Shikun & Binui Allocates 13% of Shikun Ubinui Real Estate to Institutional Investors for NIS 290m

The deal represents a value of NIS 2.25bn for the Israeli Real Estate Arm of the Group

RAMAT GAN, Israel, December 31 - Shikun & Binui Ltd. (TASE: SKBN.TA) ("Shikun & Binui" or the "Company"),
a member of the Arison Group and Israel's leading infrastructure and real
estate company, announce today the signing of an agreement with Israeli
institutional investors from Harel, Clal Insurance and The Phoenix Groups to
sell approximately 13% of its fully owned subsidiary Shikun & Binui Real
Estate for NIS 290m.

This deal reflects a post money valuation of NIS 2.25bn for Shikun &
Binui Real Estate. The above-mentioned deal will result in the contribution
of NIS 130m to the Company's reported net profit.

Shikun & Binui Real Estate, under the management of Tamir Dagan, is the
development arm of the Shikun & Binui Group and has been active in Israel for
over 50 years. The Company leads in the area of "sustainable building" in
Israel as part of the Group's strategy to create a sustainable and advanced
life environment for today, as well as future generations.

Shikun & Binui Real Estate leads the residential development business in
Israel, including new buildings, apartment deliveries and sales. The Company
has a unique historic land bank in excess of 15,000 units.

Ofer Kotler, the Group's CEO commented, "The deal reflects the trust that
the investors have in Shikun & Binui Real Estate and in the Group in general.
I am proud that we have ended the year successfully while at the same time
exposing value."

Doron Blachar, the Group's CFO said, "The offering strengthens the
Company's balance sheet including its equity structure and its financial
stability. We will continue to actively create value for the Group's
shareholders."

Tamir Dagan, the CEO of Shikun & Binui Real Estate commented, "The
strategy of Shikun & Binui Real Estate is to continually expand operations
and grow. The sustainability vision of the Company will serve as a pivotal
growth engine in our operations, for the Company's customers, workers and
shareholders," concluded Mr. Dagan.

About Shikun & Binui

Shikun & Binui, a member of the Arison Group, is the leading
infrastructure and real estate company in Israel. The Group's subsidiaries
have been operating since 1924. The Group's companies have gained extensive
experience in complex construction and infrastructure projects in Israel and
abroad. The Shikun & Binui Group has proven achievements in building,
residential neighborhoods, commercial and industrial buildings, as well as
large-scale transportation infrastructure and ecological projects, water
purification and desalination and development of international projects.
Shikun & Binui is a leading, multi-faceted and socially responsible
international group that produces balance between the business, social and
environmental accomplishment. The group places emphasis on honesty,
transparency, innovation, and excellence. The group has accepted upon itself
a leadership role in creation of a sustainable and progressive life
environment.

    Company Contact:         Investor Relations Contacts:
    Doron Blachar, CFO       Ehud Helft / Fiona Darmon
    Shikun & Binui           GK Investor Relations
    Tel: +972-3-630-1518     Tel: +1-646-797-2868 / +97-52-695-4400
                             Email: info@gkir.com

Doron Blachar, CFO, Shikun & Binui, +972-3-630-1518; Investor Relations Contacts: Ehud Helft / Fiona Darmon, GK Investor Relations, +1-646-797-2868 / +97-52-695-4400, info at gkir.com