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Retalix Launches QSR for Supermarkets

New Software Solution Allows Grocers to Enhance Customer Service with Deli/Foodservice Preparation in their Stores

DALLAS – May 7, 2007 – Retalix® (NASDAQ: RTLX), a leading provider of enterprise-wide software solutions for food retailers and distributors, announced today the release of Retalix StoreLine QSR. As an add-on module to the company’s industry leading point-of-sale (POS) application, Retalix StoreLine™, the new solution allows grocers to incorporate functionality to manage deli-preparation operations and quick service restaurants (QSR) within their stores.

Retalix StoreLine QSR, with its food service menuing capabilities, is fully integrated with Retalix StoreLine POS, Retalix Front Office and Retalix Kitchen Management System (KMS). This enables retailers to manage, order and produce full-service custom food orders within any POS transaction. It also allows store associates to create orders using the same underlying business logic and system infrastructure that’s available with Retalix StoreLine POS, assuring workflow and pricing consistencies between POS terminals while reducing overhead and maintenance costs.

Initial installations with Retalix StoreLine QSR are planned to be implemented this quarter at major grocers in the U.S. and U.K.

“The lifestyle needs of time-pressed consumers have facilitated the rise in food service at the supermarket. Retalix StoreLine QSR module simplifies the order, fulfillment and payment process of these unique items for the consumer and store associate,” said Ray Carlin, executive vice president of Retalix USA. “Retalix StoreLine QSR, like Retalix Fuel and Retalix Loyalty, is an excellent example of our using an open, integrated POS platform that helps food retailers worldwide to excel at superior customer service.”

Retalix StoreLine QSR features a colorful and intuitive, touch-based graphical user interface, reducing training time and costs for store associates. The system can be configured to accept payments or take orders only. In addition, grocery items can be accepted at the QSR lane and QSR items can be paid for at the front-end checkout lanes.

Major components are similar to stand-alone quick-service restaurants, and include customized product ordering capabilities, the Kitchen Management System (KMS), production recording, label management and an extensive set of reports such as item modifications and performance of suggestive selling and upgrade prompts, among others.

About Retalix

Retalix is an independent provider of enterprise-wide software solutions to retailers and distributors worldwide. Retalix solutions serve the needs of multi‑national grocery chains, convenience and fuel retailers, food service operators, food and consumer goods distributors and independent grocers. The Company offers a full portfolio of software applications that automate and synchronize essential retailing, distribution and supply chain operations, encompassing stores, headquarters and warehouses. Retalix develops and supports its software through more than 1,500 employees in its various subsidiaries and offices worldwide. The company’s U.S. are located in Plano, Texas and international headquarters are located in Ra’anana, Israel. Retalix on the Web: www.retalix.com.

Retalix, Retalix StoreLine, Retalix Fuel and Retalix Loyalty are either registered trademarks or trademarks of Retalix Ltd. in the United States and/or other countries. The names of actual companies, products and services mentioned herein may be the trademarks of their respective owners.

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 and U.S. federal securities laws. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements or other guidance or outlooks expressed or implied by such forward-looking statements. Such factors include risks relating to Retalix’s anticipated future financial performance and growth, continued roll-outs with existing customers, continued interest in Retalix’s new platforms, the perception by leading retailers of Retalix’s reputation, the potential benefits to food and fuel retailers and distributors, expansion into new geographic markets, 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 Retalix’s Annual Report on Form 20-F for the year ended December 31, 2005, for a discussion of these and other important risk factors. Retalix 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.