03.05.2007 GAZIT-GLOBE EXPANDS ITS OPERATIONS INTO BULGARIA Gazit Globe to invest over €200 million during the next five years in acquiring and developing shopping centers in Bulgaria TEL AVIV, ISRAEL (March [ ], 2007) - Gazit Globe Israel (“the Company”), the Israeli subsidiary of Gazit- Globe Ltd, Israel’s leading real estate owner and developer, announces today that the Company intends to invest over €200 million during the next five years in the acquisition and development of 15-20 shopping centers in Bulgaria. The Company’s existing development opportunities in Bulgaria, include: • Two plots of land in the city of Sofia, on the city’s ring road, at the junction of two highways connecting Sofia with Plovdiv and Varna. The Company intends to develop two mixed-use shopping centers, with integrated offices, offering a gross leasable area of 150,000 square meters, which will be built in several stages. • A plot of land of approximately 20,000 square meters in the center of an affluent residential neighborhood in the city of Plovdiv, the second largest city in Bulgaria. The anchor tenant is the German “Do-it-Yourself” chain "Praktiker". The plot has additional building rights for approximately 25,000 square meters of commercial space. • An office building in the center of Sofia, adjacent to the U.S. Embassy, currently used as the Company’s headquarters in Bulgaria. Commenting on today’s announcement, Ronen Ashkenazi, CEO of the Company, said: “To date, the Company has invested approximately €20 million in properties and development sites, which offer good opportunities to apply our expertise in developing new shopping centres. Additionally, we are in the process of acquiring an additional plot of land at a cost of approximately €10million. “These acquisitions underline Gazit-Globe’s global strategy to expand its operations into new countries, and following a thorough market study done by our local managers on ground, the Company has identified Bulgaria as a market where it can unlock significant shareholder value. In addition, we believe that with Bulgaria’s EU accession in 2007, growth will be accelerated, offering many more attractive opportunities for the Company.” About Gazit Globe: Gazit-Globe is a real estate company listed on the Tel Aviv Stock Exchange as part of the TA-25 Index. Gazit-Globe, directly and through subsidiaries and affiliates acquires, develops and operates income producing properties including shopping centers, retirement homes and medical office buildings in growth urban areas in North America, Europe and Israel. Its primary investment objective is the creation of value through long-term maximization of cash flow and capital appreciation from its growing real estate investments. With total assets (in market value) of over $9 billion, Gazit-Globe has interests in 456 properties. This includes 22 properties currently under development that consist of approximately 4.4 million square meters of gross leasable area. Gazit-Globe Ltd. believes certain statements in this press release may constitute "forward-looking statements". Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and risks, many of which are subject to change. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of Gazit-Globe Ltd. Additionally, forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any new information, change in events, conditions or circumstances on which any such statements are based after the date hereof of to reflect the occurrence of future events.