G. Willi-Food Reports Operating Income of NIS 8.5 Million and Net Income of NIS 6.8 Million for the First Quarter of 2009

Yavne, Israel, May 26 - G. Willi-Food International Ltd., one of Israel's largest food importers and a single-source supplier of one of the world's most extensive range of quality kosher food products, today announced its unaudited financial results for 2009 first quarter ended March 31, 2009.

First Quarter Fiscal 2009 Summary

- 10.2% decrease in sales over first quarter of 2008

- 28.2% decrease in gross profit over first quarter of 2008

- 22.8% gross margin in first quarter of 2009 compared with
  28.5% gross margin in first quarter of 2008

- Operating income of NIS 8.5 million (US $2.0 million) in
  first quarter 2009

- Income before taxes of NIS 8.5 million (US $2.0 million) in
  first quarter of 2009

- Income after taxes of NIS 6.8 million (US $1.6 million) in
  first quarter of 2009

- Net income related to Company Shareholders of NIS 6.2
  million (US $1.5 million) in first quarter of 2009

Willi-Food's operating divisions include Willi-Food in Israel, majority owned Gold Frost - a designer, developer and distributor of branded kosher dairy food products, and its subsidiary - the dairy distributor based in Denmark, the Company's global kosher trade and export joint venture with the Baron family and Shamir Salads - an Israeli distributor and manufacturer of Mediterranean style salads.

Revenues for the first quarter of 2009 decreased 10.2% to NIS 95.6 million (US$22.8 million) compared to revenues of NIS 106.4 million (US$25.4 million) in the first quarter of 2008. This decrease was mainly due to the cessation of the operations of of Laish Israeli - the Company's U.S. subsidiary during July 2008, as reported by the Company on July 14, 2008.

Gross profit for the first quarter of 2009 decreased by 28.2% to NIS 21.8 million (US$5.2 million) compared to gross profit of NIS 30.4 million (US$7.2 million) in the first quarter of 2008. First quarter gross margin was 22.8% compared to gross margin of 28.5% for the same period in 2008. As previously announced by the Company on December 29, 2008, and on March 12, 2009, during the fourth quarter of 2008, the global purchase prices of food products sharply decreased, resulting in the sharp decrease in the selling prices of the Company's products as well. Because the Company's commitments to purchase food products were based on higher prices from its vendors, the immediate consequence was a decline in the gross margin in the fourth quarter of 2008 and further decline in the first quarter of 2009. The company anticipates that its 2009 second quarter results will not be affected by the abovementioned decrease in global purchase prices of food products, as the Company has completed the sale of the inventory in the orders from vendors backlog acquired at the higher prices. The decrease in 2009 first quarter gross margin compared to the gross margin in the first quarter of 2008 was due to the decrease of global purchase prices of food products compounded with the strengthening of the U.S. dollar versus the NIS (a depreciation of more than 11% of the value of the NIS in the fourth quarter of 2008 and a further 10% depreciation in the first quarter of 2009) and the general effects of the global economic recession.

Willi-Food's operating income for the first quarter of 2009 decreased by 42.6% to NIS 8.5 million (US $2.0 million) compared to NIS 14.8 million (US $3.5 million) reported in the comparable quarter of last year. Selling expenses as a percentage of revenues decreased in the first quarter of 2009 to 8.3% compared to 8.8% in the first quarter of 2008. General and administrative expenses as a percentage of revenue decreased in the first quarter of 2009 to 5.7% from 5.8% in the first quarter of 2008. The decrease in selling and general and administrative expenses is attributed to the actions taken by the Company's management during the first quarter of 2009 to reduce the Company's expenses by, among other things, a temporary 5% decrease in management's salaries.

Willi-Food's income before taxes for the first quarter of 2009 decreased by 35.5% to NIS 8.5 million (US $2.0 million) compared to NIS 13.1 million (US $3.1 million) recorded in the first quarter of 2008. Willi Food's net income in the first quarter of 2009 decreased by 30.0% to NIS 6.8 million (US $1.6 million) compared to NIS 9.7 million (US $2.3 million) recorded in the first quarter of 2008. Willi Food's net income related to Company Shareholders in the first quarter of 2009 decreased by 28.1% to NIS 6.2 million (US $1.5 million), or NIS 0.60 (US $0.14) per share compared to NIS 8.6 million (US $2.1 million), or NIS 0.84 (US $0.20) per share, recorded in the first quarter of 2008.

Willi-Food ended the quarter with $19.3 million in cash and securities and $4.8 million in short-term debt.

Mr. Zwi Williger, President and COO of Willi-Food commented, "We are very pleased with our first quarter 2009 results in the current challenging environment. Willi-Food's first quarter results were affected by the sharp decrease in global purchase prices, the depreciation of the NIS versus the U.S. dollar, the continued environment of uncertainty in the global financial markets, and the recession that began in our home market. Despite the economic situation and the recession that has affected our customers and the global markets, Willi Food has achieved net income of NIS 6.8 million in the first quarter of 2009 - margin of 7.1% of revenues. Willi Food has taken the appropriate measures to position the Company for a stronger fiscal 2009 and we remain focused on maximizing long-term profitability."

Mr. Williger concluded, "We continue to work to expand the footprint and brand recognition of Willi-Food globally while diversifying our product base in order to hedge against any single event impacting our results. We are looking for improved Willi-Food's results in 2009 as compared to our 2008 results."

Shamir Salads

The Company announced that, on May 14, 2009 it had received a notice from the minority shareholders of Shamir Salads (the "Sellers"), with whom the Company had entered into a January 2, 2008 agreement to purchase approximately 51% of the shares of Shamir Salads (the "Shamir Agreement"), cancelling the Shamir Agreement due to an alleged violation of the Agreement by the Company. In addition, on May 18, 2009, the Sellers notified the Company that the board of directors and the shareholders of Shamir Salads had convened without the Company's board and shareholder representatives and resolved to cancel the Shamir Agreement, change Shamir Salads' board composition and signatory rights, and replace the articles of association of Shamir Salads depriving the Company of its board representation and signatory rights in Shamir Salads.

The Company's position is that the Seller's actions referred to above are illegal, violate the Shamir Agreement and Shamir Salads' articles of association and were not properly authorized by Shamir Salids. The Company believes that the actions taken by the Sellers are in response to the claim by the Company that the Sellers return a portion of the advance payment made by the Company to the selling shareholders in connection the acquisition of shares in Shamir. The Company has claimed that the Sellers made false representations to the Company as to the 2008 financial results of Shamir, inflating the amount of the advance payment made by the Company, and the Sellers have not responded to this claim.

The Company has submitted an urgent application to the district court in Tel Aviv requesting, among other things, a declaratory judgement that the Shamir Agreement is in full force and effect and various injunctions against the Sellers. The court held a hearing on the case on May 25, 2009, and the Company is awaiting the court's decision.



NOTE A: Convenience Translation to Dollars

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on March 31, 2009, U.S. $1.00 equals NIS 4.188. The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month ended March 31, 2009 are presented in accordance with International Financial Reporting Standards ("IFRS").

   G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS


 March 31,  December 31, March 31,  December
31,
  2 0 0 9 2 0 0 8 2 0 0 92 0 0 8
   NIS  US dollars (*)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents   68,563   78,749 16,37118,804
Financial assets carried at
fair value through profit or
loss12,2409,367  2,923 2,237
Trade receivables   93,423   79,599 22,30719,006
Other receivables and prepaid2,3043,987550   952
expenses
Current tax assets 7522,456180   586
Inventories 34,493   34,417  8,236 8,218
Total current assets   211,775  208,575 50,56749,803

Non-current assets
Property, plant and equipment   56,185   55,574 13,41613,270
Less -Accumulated
depreciation14,083   13,467  3,363 3,216
42,102   42,107 10,05310,054

Prepaid expenses12,421   12,539  2,966 2,994
Goodwill 3,8293,829914   914
Intangible assets5,0775,181  1,212 1,237
Deferred taxes 4071,111 97   265
Total non-current assets63,836   64,767 15,24215,464

   275,611  273,342 65,80965,267
EQUITY AND LIABILITIES
Current liabilities
Short-term bank credit  20,052   17,562  4,788 4,193
Trade payables  46,544   53,728 11,11412,829
Accruals 5,1596,197  1,232 1,480
Current tax liabilities  1,6011,050382   251
Other payables and accrued
expenses 5,0834,971  1,213 1,187
Employees Benefits   2,8862,544689   607
Total current liabilities   81,325   86,052 19,41820,547

Non-current liabilities
Long-term bank loans   252  267 6064
Deferred taxes 512  442122   105
Warrants to issue shares -5  - 1
Employees Benefits   1,039  994248   237
Total non-current liabilities1,8031,708430   407

Shareholders' equity
Share capital NIS 0.10 par
value
(authorized - 50,000,000
shares, issued
and outstanding - 10,267,893
shares   1,1131,113266   266
Premium 59,056   59,056 14,10114,101
Capital fund   247  247 5959
Foreign currency translation
reserve204  369 4988
Retained earnings  117,623  111,447 28,08626,611
Noncontrolling interest 14,240   13,350  3,400 3,188
   192,483  185,582 45,96144,313

   275,611  273,342 65,80965,267


(*)Convenience translation into U.S. dollars

   G. WILLI-FOOD INTERNATIONAL LTD.

   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

   Three months endedThree months ended
March 31  March 31
2 0 0 92 0 0 82 0 0 92 0 0 8
   NIS US dollars (*)
  (in thousands, except per share and
  share data)

Sales95,570106,445 22,820 25,417

Cost of sales73,781 76,094 17,617 18,170

Gross profit 21,789 30,351  5,203  7,247

Selling expenses  7,965  9,396  1,902  2,244
General and administrative
expenses  5,424  6,149  1,295  1,468

Other Income 95  - 23  -

Total operating expenses 13,294 15,545  3,174  3,712

Operating income  8,495 14,806  2,029  3,535

Financial income672  (743)160  (177)
Financial expense   715967171231

Income before taxes
on income 8,452 13,096  2,018  3,127

Taxes on income   1,694  3,438404821

Income after taxes
on income 6,758  9,658  1,614  2,306

Related to:
Company Shareholders' 6,176  8,595  1,475  2,052

Minority interest   582  1,063139254

Net income6,758  9,658  1,614  2,306

Earnings per share data:

Earnings per share:

Basic  0.60   0.84   0.14   0.20

Diluted0.60   0.84   0.14   0.20

Shares used in computing
basic and diluted earnings
per ordinary share:  10,267,893 10,267,893 10,267,893 10,267,893

(*) Convenience translation into U.S. dollars