Elbit Medical Imaging Ltd. Announces Definitive Agreements for a Large Scale Luxury Mixed Use Project in Bangal...( TEL-AVIV Israel Oct. 22 /- Elbit ...)

TEL-AVIV, Israel, Oct. 22 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. (Nasdaq: EMITF) ("EMI") today announced that on October 18, 2007 its wholly owned subsidiary has entered into definitive agreements with one of the leading developers in Bangalore, India (the "Partner") for the joint development of a large scale mixed-use project located in Bangalore, Karnataka, India.

The Project, which will be developed through an Indian company to be held in equal parts by EMI and the Partner (the "JV Company"), will be built in an upscale section of Bangalore, on an area of approximately 200 acres (by way of direct ownership) and additional areas through joint development rights. The Project is planned to include (i) high class residential neighborhoods with amenities such as a golf course, club houses, swimming pools, tennis courts, sports facilities and other recreation areas; (ii) office complexes and IT parks; (iii) a luxury 5 star+ hotel; (iv) a serviced apartments facility; (v) a hospital; and (vi) a major retail facility. The total built up area of the entire planned project will exceed 2 million square meters (approximately 21 million square feet), subject to obtaining the requisite permits and approvals under applicable law.

Construction of the Project is anticipated to commence within the next twelve months, and will be executed in stages to be completed within 3 to 5 years thereafter. The Project is the largest development project undertaken in the Bangalore area to date.

Consummation of the transaction will be accomplished in stages, and is subject to the fulfillment of certain conditions. EMI previously paid an advance of approximately $50 million towards the purchase price of the land, p
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