Yash Bhatnagar and Sameer Srivastava

Buy: Limit at market price Sell: Stop at $8.50, Limit at $13.50

Blue Square-Israel Ltd. (Blue Square) operates in three segments:◦Supermarkets segment – food retailer in the

State of Israel (207 super markets)◦Non-Food segment - Sells Non-Food items

both in its supermarkets and in retail outlets (268 outlets)

◦Real Estate segment - owns, leases and develops yield-generating commercial properties.

Current Price: $9.85 P/E Ratio: 25.26 Beta: 1.06 Dividend/ Yield: $3.41(37.82%) EPS: $0.39 52-Week Low: $8.00 52-Week High: $15.39 Market Cap: $439 M Institutional Ownership: 0%

Taken from http://www.google.com/finance?q=NYSE:BSI as of 03/09/11

Company reported annual 2009 earnings of 0.47 per share on 03/15/2010

Company reported 3rd quarter 2010 earnings of 0.01 per share on 11/24/2010

◦ Known as the “Walmart of Israel”◦ Has a dividend of 35.16%◦ Current price at lower end of 52 week range. ◦ The company has averaged a stellar 62% average

annual growth rate in net income. ◦ The stock deliver a 5 year average annual growth

rate of around 10%.◦ Strong long term stock characteristics◦ Global supermarkets such as Walmart have not

targeted region.

The Company competes with Toys R Us, Office Depot, Home Center, Ace Hardware, Golf & Co. Ltd. and Kitan Textile Industries Ltd.

Has strongest market hold in the holdings and supermarket industry compared to competition.

Provides materials to the middle class Invests in local companies and groups Executive team has ties to nonprofit sector Own companies that aid the lower middle

class, such as Dr. Baby and All for a Dollar.

BSI:1. http://www.bsi.co.il/en/index.asp

2. http://www.google.com/finance?q=NYSE:BSI

3. http://www.reuters.com/finance/stocks/companyProfile?symbol=BSI

4. http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=BSI:IT