G. Willi-Food (WILC) Receives Temporary Injunction in Connection With Shamir Salads

June 1, 2009 9:22 AM EDT

G. Willi-Food International Ltd. (NASDAQ: WILC) announced that on May 27, 2009, the district court in Tel Aviv issued a temporary injunction against 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").

As previously announced, on May 14, 2009, the Company received from the Sellers a notice cancelling the Shamir Agreement, and on May 18, 2009, the Company was notified of unilateral actions taken by the Sellers with respect to a change in Shamir Salads' board composition and signatory rights and replacement of the articles of association of Shamir Salads in an effort by the Sellers to deprive the Company of its board representation and signatory rights in Shamir Salads.

Pursuant to the injunction issued by the court, the Sellers are prohibited from taking any action not in accordance with the signatory rights in Shamir Salads in effect prior to May 18th...In addition, the Sellers are prohibited from interfering with the functions of the co-CEO of Shamir Salads nominated by the Company and/or from preventing the deputy CFO of Shamir Salads' from participating in the discussions to approve the financial statements of Shamir Salads. The district court also required the Sellers to reimburse the Company for its court and attorney expenses in the amount of NIS 30,000 plus VAT.

G. Willi-Food International Limited is engaged, directly and through subsidiaries, in the design, import, marketing and distribution in Israel of a range of over 600 food products.[SM]

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