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Elbit Medical Imaging Ltd. Announces that Plaza Centers Has Entered into a Joint Venture Partnership to Develop Residential and Office Projects in Romania
Date:10/23/2007

TEL-AVIV, Oct. 23 /PRNewswire-FirstCall/ -- Elbit Medical Imaging Ltd. (TASE, Nasdaq: EMITF) ("EMI" or the "Company") announced today that its subsidiary, Plaza Centers N.V. (LSE: PLAZ) ("Plaza"), a leading Central and Eastern European ("CEE") and in India emerging markets property developer, announced today that it has entered into a joint venture partnership with BAS Development ("BAS"), to develop residential and office projects in Romania. BAS is a private company which is active in the Romanian property market and which operates primarily in partnership with Aura Investments Limited, an Israeli investment and management company listed on the Tel Aviv Stock Exchange (AUR.TA).

A newly established company (the "JV Company"), of which 50.1 percent will be owned by Plaza and the remaining 49.9 percent by the current shareholders of BAS, will acquire BAS' ownership in five existing residential and office development projects. The acquisition price of approximately Euro 6.9 million reflects the initial value of BAS' net interest in the projects. BAS will retain responsibility for managing these projects.

The five projects are located in three of Romania's largest cities: Bucharest, Brasov (the gateway to Transylvania) and Ploiesti (56 km north of Bucharest). Plaza anticipates that these cities are poised for significant growth, particularly in light of the positive economic impact of the EU on this region. In the future, the JV Company will work to identify and secure additional residential and office development opportunities in these and other large cities in Romania.

Commenting on the deal, Shimon Yitzhaki, President of EMI said, "We know the Romanian market very well and believe in its fast growing residential and office markets. We are confident that this additional sector in this region will generate additional returns. Bucharest, Brasov and Ploiesti are vibrant cities in excellent locations which we believe will generate significant val
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