Blue Square Announces its Subsidiary Served With a Claim and Request for Approval as a Class Action

ROSH HAAYIN, Israel, June 4/PRNewswire-FirstCall/ -- Blue Square-Israel Ltd. (NYSE: BSI) (hereinafter: "Blue Square")
announced that on June 3, 2008 its subsidiary the Blue Square Chain (Hyper
Hyper) Ltd. (hereinafter: "Hyper") was served with a claim and a request for
approval as a class action (the "Claim"), in which Hyper is being sued
together with other defendants, regarding the marketing of ink cartridges.

The Claim alleges that the defendants coordinated the prices
of certain Hewlett-Packard ("HP") ink cartridges sold by them, in a way that
constitutes allegedly an agreement in restraint of trade. According to the
claim, the defendants allegedly sell HP ink cartridges for a higher price
than the price charged for such ink cartridges by smaller retailers.

The plaintiff's personal claim is estimated at NIS 496 and if
the Claim is approved as a class action, the approximate claim against all
the defendants is estimated by the plaintiff at NIS 81 million (against all
defendants). The Claim requests relief in the form of declaration of an
agreement in restraint of trade, monetary compensation and a mandatory
injunction to stop alleged price coordination.

Hyper is currently reviewing the Claim and denying all above
allegations, however, at this preliminary stage of the proceedings, it is
unable to evaluate its likelihood of success in the proceedings, including
the likelihood that the Claim will be certified as a class action.

* * *

Blue Square-Israel Ltd. is a leading retailer in Israel. A
pioneer of modern food retailing, in the region. Blue Square currently
operates 188 supermarkets under different formats, each offering varying
levels of services and prices. For more information, please refer to the Blue
Square-Israel Ltd. website at http://www.bsi.co.il.

Forward Looking Statements

The statements contained in this release, except for
historical facts, which are forward-looking with respect to plans,
projections, or future performance of the Company, involve certain risks and
uncertainties. Potential risks and uncertainties include, but are not limited
to, risk of market acceptance, the effect of economic conditions, the impact
of competitive pricing, supply constrains, the effect of the Company's
accounting policies, as well as certain other risks and uncertainties which
are detailed in the Company's filings with the Securities and Exchange
Commission, particularly the Annual Report on Form 20-F/A for the year ended
December 31, 2006.

Contact:
Blue Square-Israel Ltd.
Elli Levinson-Sela
General Counsel & Corporate Secretary
Telephone: +972-3-9282670
Fax: +972-3-9282498
Email: ellils@bsi.co.il

Source: Blue Square Israel Ltd

Contact: Blue Square-Israel Ltd., Elli Levinson-Sela, General Counsel & Corporate Secretary, Telephone: +972-3-9282670, Fax: +972-3-9282498, Email: ellils@bsi.co.il

2008-06-04 06:56:34 0376913 PRNEWSWIRE