Shikun & Binui to Distribute NIS 100 Million Dividend; Convening General Meeting to Approve Distribution

RAMAT GAN, Israel - 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, has announced that on July 27, 2009 the Company’s Board of Directors resolved to recommend the distribution of a cash dividend to the amount of NIS 100 million (”Dividend”). This represents NIS 0.249 dividend per share of NIS 1 par value, based on the Company’s outstanding share capital on the date of the Board of Directors’ decision.

The Dividend will be payable to all shareholders of record at the end of the trading day on August 26, 2009. The Dividend ex-date date will be August 27, 2009 and the Dividend payment date will be September 10, 2009. By law, tax will be withheld at source. Prior to the dividend distribution, the Company’s retained earnings eligible for distribution, according to section 302 of the Israeli Companies Law, total approximately NIS 224,520, and following the distribution, will total approximately NIS 124,520 million.

The Company has announced the convening of a General Meeting of Shareholders on August 19, 2009, at 10:00 am at the Company’s offices, 3 Shalem Street, Ramat Gan, Israel in order to approve the distribution of the dividend.

The majority required for the approval of the resolutions on the agenda is one third of the shareholders eligible to participate in the vote, present at the meeting in person or through representatives on their part. If the required majority is not present, the meeting will be postponed to August 26, 2009 at 10:00am, at the same place. It is possible to review documents relating to this report at the Company’s offices, in 3 Shalem Street, Ramat Gan, Sunday to Thursday, during normal working hours, and after prior phone arrangement at +972(03)630-1517.

This release does not constitute an offer to purchase any securities. If there is any inconsistency or ambiguity between this release and any of the company’s formal reports, the formal reports shall prevail.

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 / +972-5-695-4400 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 / +972-5-695-4400, Email: info at gkir.com