Strauss Group to Acquire Fino Grao in Brazil, Through Tres Coracoes

TEL AVIV, Israel, March 23, 2011 - The Strauss Group (STRS.TA) published today the following immediate
report to the TASE.

The Company hereby announces that Tres Coracoes Alimentos S.A. ("Tres
Coracoes"), a 50% joint venture of Strauss Coffee B.V. (74.9%) and Sao Miguel
FIP, has signed a Letter of Intent to acquire the business of the coffee
company "Fino Grao", which operates mainly in the Minas Gerais province and
its capital Belo Horizonte, in Brazil.

Fino Grao sales in 2010 were approximately 32 to 35 million BRL
(approximately 68 to 74 million NIS). The sales are comprised primarily of
roast and ground coffee as well as cappuccino and espresso products. Fino
Grao is the second-largest in market share in Belo Horizonte after Tres
Coracoes.

This transaction will facilitate the capture of several synergies between
Fino Grao and Tres Coracoes.

Tres Coracoes will pay in consideration of Fino Grao's coffee business,
including trademarks, fixed assets and customers, without liabilities, an
amount which represents a multiple of around one time annual sales of Fino
Grao in 2010.

Tres Coracoes will conduct a due diligence review of the Fino Grao
business. The parties undertook to sign a definitive agreement that will
include the terms and conditions of the Letter of Intent as well as other
terms and conditions customary in such agreements.

The transaction, which is expected to be closed by June 11, 2011, is
conditional, inter alia, on receipt of all required approvals from the
authorities in Brazil. The transaction will be funded from internal resources
and bank credit. No additional significant investments will be required in
the acquired business.

About Strauss Coffee

Strauss Coffee is the fifth-largest coffee company in the world in terms
of green coffee usage, and one of the fastest growing coffee companies in the
world in the past seven years. The company's revenues totaled NIS 3.4 billion
at the end of 2010.

Strauss Coffee's activities focus on the R&G (Roast & Ground) segment and
other coffee related products, providing coffee solutions to both the in-home
and away from home markets, namely coffee shops, restaurants, hotel and
offices.

The Company enjoys a leading position in the coffee markets in Central
and Eastern Europe, Brazil and Israel.

About Tres Coracoes

Tres Coracoes is primarily engaged in the production and distribution of
roast and ground coffee. The company also produces and sales other products
such as corn products, coffee filter, cappuccino, chocolate, espresso, and
powdered drinks. The company is the owner of the trademarks Santa Clara,
Kimimo, 3 Coracoes, Pimpinela, Principal, Claralate, Dona Clara, Claramil and
Frisco, the Group is among the two largest groups in the roasted and ground
coffee market in Brazil.

The Group's manufacturing unit are located in the states of Ceara, Rio
Grande do Norte, Minas Gerais and Rio de Janeiro, and has 23 distribution
centers in most of Brazil states.

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

    Investor 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

    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

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