Market Basket completes rollout of Retalix Store Level forecasting and auto-replenishment solution

Grocery Retailer Increases Order Efficiency and Reduces Out of Stocks

DALLAS, TX, July 22, 2004 -- Retalix USA (Nasdaq:RTLX) announced today that Market Basket, a supermarket chain in Texas and Louisiana, completed the rollout of Retalix's DemandAnalytx store forecasting and ordering system.

Retalix's DemandAnalytx (DAX) Demand-chain Optimization Software allows retailers, manufacturers and distributors to achieve dramatic improvements in key metrics of supply chain performance. The DAX solution is fully web-enabled, and provides collaborative tools at the store level to utilize sophisticated algorithms to interpret POS data, forecast store-level demand and optimize replenishment orders, while taking into account the full complexity of the retail environment.

"Our stores have never looked better, and the results we've achieved using the Retalix DemandAnalytx (DAX) software solution have exceeded our expectations," said Skylar Thompson, President of Market Basket. "The success of our initial pilot made it an easy decision to continue to roll out this order optimization system across the rest of our stores. The store managers were lining up to be the next site installed." Tom Cormier, Market Basket's CFO, added, "This has been one of the smoothest software implementations I've ever been involved with. The level of support we received throughout the project was tremendous."

"DemandAnalytx offers a fast, robust and flexible forecasting and ordering platform for supermarket and convenience store operators," said Barry Shaked, Retalix CEO. "Leveraging Point of Sale data, DAX is able to create a very accurate forecast of store specific consumer demand. This forecast provides the means to drive an efficient order, which helps reduce out-of-stocks, and increases return on inventory investment. The success at Market Basket is validation that Retalix's continued investment to gain downstream supply chain efficiencies with products like DemandAnalytx (DAX) Store Level Replenishment technology, will drive new efficiencies and cost savings for all of our customers."

About Market Basket

Market Basket, headquartered in Nederland, Texas, is a privately held regional grocery chain with retail facilities located throughout Southeast Texas and Southwest Louisiana. They operate conventional supermarkets under the Market Basket and Lucky 7 banners. For further information, please visit the company's web site at

About Retalix Ltd.

Retalix Ltd., with North American headquarters in Dallas, TX, provides integrated enterprise-wide software solutions for the global food and fuel retail industries, including supermarkets, convenience stores, fuel stations and restaurants. The Company offers a full suite of software applications that support a food retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability. With installations in more than 30,000 stores and across 44 countries, the Company markets its software solutions through direct sales, distributors, local dealers and its various subsidiaries. For further information, please visit the Company's web site at

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 the Company, including revenues, income and expenses, 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 the Company's anticipated future financial performance, continued roll-outs with existing customers, the market reception of its new e-marketplace and ASP services, the potential benefits to food and fuel retailers and suppliers, expansion into new geographic markets, the conversion of sales leads into customers and the ramp-up of ASP users, the integration of the Company's acquisition of OMI 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, 2003, 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.

Barry Shaked, Retalix Ltd.
Jeff Yelton, Retalix USA
CCG, Investor Relations 
Crocker Coulson, 818-789-0100 

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