Shikun & Binui Subsidiary Signs Agreement to Sell Land in Netanya

RAMAT GAN, Israel -

- Expects to Record Net Capital Gain of NIS 20 Million in Third Quarter 2009

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, announced today that on August 12, 2009, Shikun & Binui Nadlan Ltd. (a wholly owned subsidiary active in real estate development in Israel), entered into an agreement with an independent third party (the “Purchaser”), under which Shikun & Binui Nadlan Ltd. will sell land in Netanya, Israel, to the Purchaser.

The Company expects to record a net capital gain in its third quarter 2009 financial statements, resulting from the aforesaid transaction, of approximately NIS 20 million.

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

Source: Shikun & Binui Ltd.

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