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May 3, 2016

Azrieli Group Announces the Purchase of the Buy2 Digital Commerce Platform The Group's Entry into the eCommerce Sector will Provide it with a New Growth Engine and a Significant Base for Development of the Group's Digital Commerce Business

Azrieli Group today reports that it has entered into an agreement with Buy2 Networks Ltd., a public company whose shares are listed on the Tel Aviv Stock Exchange, whereby it will purchase all of the rights and assets of Buy2 Networks in the eCommerce sector, including 100% of the shares of Netex New Media Ltd., a private company wholly owned by the seller, which engages in the business sector.

In consideration for the acquired business, Azrieli Group shall pay the seller approx. NIS 54 million, subject to various adjustments, and in addition approx. NIS 8 million as repayment of a debt of the acquired company to the seller. In addition, for a period of 24 months from the date of the closing of the transaction, Azrieli Group shall pay approx. NIS 5 million per year for management services in the business sector that shall be provided by the seller to Azrieli Group.

The closing of the transaction is contingent, inter alia, on receipt of approval of the Antitrust Commissioner, and therefore, to date, the closing of the transaction is uncertain.

Buy2 Networks was established and is managed by Aviv Refuah. The company is one of the leading and most advanced eCommerce companies in Israel. The Buy2 group includes a broad range of sites and services headed by the Buy2 site, which includes more than 20 thousand different products for online purchase.

The group provides a comprehensive solution for suppliers and sellers interested in selling on the group's sites, from the marketing of the products to the public, clearing services, customer service, logistics services which include storage of the products and management of their distribution to the customer's home within a short time (generally within 24-48 hours), etc.

Yuval Bronstein, CEO of the Group, said: "We have been acting for over a year to expand our foothold in the eCommerce sector in Israel, which has become an integral part of commercial life in Israel and around the world. We see this as a new growth engine, and after long and meticulous examination, we have decided to buy the platform and business of Buy2, and we believe that this leading platform will add significant strength to our business, together with its founder, Aviv Refuah, who is expected to join Azrieli Group as head of eCommerce alongside the Group's present managers."

Azrieli Group Ltd. owns and operates one of Israel's largest portfolios of malls, shopping centers and office properties nationwide. The Company is publicly traded on the TASE under the symbol AZRG IT, and is included in the TA-25, TA-100 and TA Real Estate 15 indices. It is the only Israeli stock included in the EPRA Index, which is the European index of the world's largest income-producing property companies. To date, the Company has an equity market capitalization of about NIS 18 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area (as of December 31, 2015) of approx. 890,000 square meters; the Company holds 15 malls and shopping centers comprising 300,000 square meters of leasable space across Israel, 11 office properties comprising 374,000 square meters of leasable space across Israel and 6 properties overseas (mainly in Houston, Texas) comprising 187,000 square meters of leasable space. In addition, the Company has 8 projects under development comprising around 475,500 square meters of leasable space in Israel. Approx. 90% of the fair value of the investment property and the property under development relates to domestic properties (in Israel). The Group has been specializing in shopping center and office space development, acquisition, and management for the past 30 years. For further information, please visit the Company's website at www.azrieli.com.

For further information:

Adi Molcho-Weinstein

Manager of Investor Relations, Azrieli Group Office: 03-6081781

Mobile: 054-5608014

AdiM@azrieli.com

Azrieli Group Ltd. published this content on 03 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 03 May 2016 13:03:05 UTC.

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