Coca-Cola Israel has Signed a Memorandum of Understanding to Acquire One Third of StoreAlliance Israel, Which Provides Online Information and Management Services to the Independent Grocery Sector in Israel

Retalix Ltd. (Nasdaq:RTLX) announced today that The Central Bottling Company Ltd. (Coca-Cola Israel), the exclusive Israeli bottler for Coca-Cola, and StoreAlliance Ltd. have signed a memorandum of understanding whereby Coca-Cola Israel will invest in Retalix's subsidiary in Israel.

According to the MOU, Coca-Cola Israel intends to acquire one third of StoreAlliance shares and obtain usage rights to StoreAlliance's marketing and advertising channels as part of a deal valued at $5 million (US). Coca-Cola Israel, Retalix and StoreAlliance intend to bring on board additional investors in the future.

Retalix Ltd. provides StoreAlliance with Internet-based applications that allow StoreAlliance to operate an ASP (Application Service Provider) business for the independent grocer sector in Israel. Through these applications and the online collaboration that they enable between retailers and suppliers, StoreAlliance services are designed to introduce efficiencies in the supply chain, thereby increasing the profits of all participants. These ASP applications include pricebook, ordering, receiving, inventory management, online access to marketing information, and customer relationship management.

More than 400 independent grocers and supermarkets in Israel are currently members of StoreAlliance and benefit from the ASP application management and information services. In the US, Retalix is also establishing an ASP/e-Marketplace for the grocery industry through its StoreAlliance.com initiative. In the convenience store market sector in North America, Retalix has partnered with i2 Technologies (NASDAQ: ITWO - news) and the National Association of Convenience Stores (NACS) to establish C-StoreMatrix.

Retalix Ltd. CEO and Chairman, Barry Shaked, said: ``StoreAlliance set out to bring on board during year 2000 a strategic investor in the form of a major manufacturer and distributor. With Coca-Cola Israel joining us, this goal is soon to be achieved. The investment will be used to accelerate the build out of StoreAlliance's online community and enhance the services and functionality of its Web-based applications. This will be StoreAlliance's first relationship with a strategic supplier and it puts us in a privileged position to become a leading supplier for on-line application services to the retail sector in Israel. I am confident that other investors in complementary sectors will also join this venture.''

StoreAlliance Israel CEO, Assaf Gadish, said: ``Coca-Cola Israel's vote of confidence in the potential of StoreAlliance provides significant momentum to expand our retailer community, add more member suppliers and broaden the variety of services that we provide.''

About StoreAlliance Israel Ltd.

StoreAlliance Israel, a subsidiary of Retalix Ltd., was established in 1999 to provide information and application management services to food retailers and suppliers in Israel via the Internet. To date, more than 400 grocers and independent supermarkets have joined the StoreAlliance retailer community and enjoy a variety of centrally-hosted services.

About The Central Bottling Company Limited

The Central Bottling Co. Limited is a privately-owned company registered in Israel. The company owns exclusive rights for the manufacturing, marketing and distribution of Coca-Cola brand products in Israel, including ``Coca-Cola,'' ``Sprite'' and ``Fanta.'' The company also distributes in Israel products of its subsidiaries, such as Danish beers ``Carlsberg,'' ``Tuborg'' and ``Skol,'' and ``Prigat'' juices. Recently, The Central Bottling Co. acquired a significant part of ``Ne'viot,'' an Israeli-based mineral water company, and has begun distributing its products.

About Retalix Ltd.

Retalix Ltd., with headquarters in Israel, provides integrated enterprise-wide software solutions for the retail industry worldwide, including supermarkets, convenience stores and restaurants. The Company offers a full suite of software applications that support a retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability. Recently, the Company expanded its product line by offering its head and back-office applications via the Internet to small chains and single store retailers. With installations in more than 15,000 stores and quick service restaurants across 41 countries, the Company markets its software solutions through direct sales, distributors, local dealers and through its U.S. subsidiary, Retalix USA, Inc., and its various other subsidiaries. The Company was founded in 1982 as Point of Sale Limited and changed its name in November of 2000 to Retalix Ltd. The Company's Ordinary Shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the NASDAQ National Market System since July 1998. For further information, visit the Company's Web sites at www.retalix.com, www.retalixusa.com or www.storealliance.com.

Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include risks relating to completion of a definitive agreement with Coca-Cola Israel, participation and equity investments by additional investors in StoreAlliance Israel, the market reception of StoreAlliance Israel's new products and ASP services, the potential benefits to food retailers and suppliers, the conversion of sales leads into customers and the ramp-up of ASP users and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F for the year ended December 31, 1999, for a discussion of these and other important risk factors. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.