LONDON, June 24 /PRNewswire/ --     BT (LSE:BT-A.L, NYSE:BT) has joined forces with Retalix Ltd. (NASDAQ:
RTLX), to launch a range of products and services which will meet the entire
in-store technology requirements of food and convenience retailers in the
U.K.

The co-operation agreement, announced at Retail Solutions 2008, brings
together Retalix's industry-established store technology platform with BT's
team of retail experts, who have a track record of delivering successful
store infrastructure implementations across a variety of retail store types.
Combined with its capabilities in communications and networked IT, BT will be
able to offer a new end-to-end grocery solution to the UK marketplace.

The Retalix grocery store solution is a tightly integrated suite of
electronic point-of-sale (EPOS) and back-office software applications,
comprising fuel, loyalty, self-checkout, wireless mobile solutions, in-store
kiosks and more. It suits the largest hypermarkets to the smallest
convenience store, with or without fuel, and is currently deployed across
over 3,800 stores and 50,000 point-of-sale terminals across the UK. Retalix
EPOS software is the solution of choice for top retailers including Tesco,
Sainsbury's and BP.

BT will sell, deliver and support the Retalix solution as part of a
complete "shop in a box" package, enabling grocery and convenience retailers
to source their store infrastructure, applications, communications, hardware,
and services, including integration, roll-out, training and support, from a
single supplier.

This consolidated approach will make BT a natural strategic IT partner
for this ever growing group of retailers, helping them to decrease the risk
and integration effort inherent in managing multiple suppliers and complex
multi-system implementation programmes. It will also enable retailers to
support a range of store initiatives, including self-service or fuel and café
management, from a single platform, which will aid the delivery of consistent
customer service across all in-store channels, while driving more efficient
processes.

Richard Dodd, Grocery Business Unit Director, BT Expedite, said: "We are
delighted to announce the expansion of our store portfolio following our
agreement with Retalix. As we build our business around our customers' needs,
BT Expedite takes collaboration very seriously and we only work with
companies that offer the best technologies available. With this complete
"shop in a box" offering, we can apply our skills and expertise in delivering
projects quickly and effectively to help a whole new group of retailers
achieve success."

Yoni Stutzen, EVP International Business Unit, Retalix, said: "BT's
integration and technology delivery capabilities combined with Retalix's
grocery, c-store and fuel software applications allow a comprehensive
offering to customers. Our reliable and proven suite of applications will now
be far more accessible to retailers who may have previously been limited by
the resources or the cost implications of managing complex system
integrations. Working with BT, we can now deliver world class business
solutions to large, medium and smaller retailers in the U.K."

About BT

BT is one of the world's leading providers of communications solutions
and services operating in 170 countries. Its principal activities include the
provision of networked IT services globally; local, national and
international telecommunications services to our customers for use at home,
at work and on the move; broadband and internet products and services and
converged fixed/mobile products and services. BT consists principally of four
lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2008, BT Group plc's revenue was GBP20,704
million with profit before taxation and specific items of GBP2,506 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT
Group and encompasses virtually all businesses and assets of the BT Group. BT
Group plc is listed on stock exchanges in London and New York.

For more information, visit http://www.bt.com/aboutbt

About BT Expedite

BT Expedite is the retail specialist division within BT. They provide
best of breed solutions to enable today's multichannel retailer to thrive in
today's competitive environment. Their solution set spans every area of
retailing; planning, sourcing, merchandising, store, sales analytics and CRM,
plus network infrastructure, hardware and professional service expertise.

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. The company's International
headquarters are located in Ra'anana, Israel, and its American headquarters
are located in Dallas, Texas. For more information about Retalix , please
visit http://www.retalix.com.

Retalix is a registered trademark of Retalix Ltd. in the United States,
the U.K. 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, 2006, 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.

Retalix Contact
    Motti Gadish
    Retalix Ltd.
    +972-9-776-6600
    news @retalix.com

    BT Contact
    Justine Manche
    BT Global Services PR
    +44-20-7356-5371
    justine.manche@bt.com