Pricer acquires Eldat Communication
 Tel Aviv April 24th ,2006

 Joint company to deliver ESL industry standard

 Pricer AB (publ) (“Pricer”) and Eldat Communication (“Eldat”) have agreed to merge in order to form the world’s principal provider of advanced Electronic Shelf Label (“ESL”) systems for retailers. This merger brings the joint company a global market share of above 60 percent and further accelerates the company’s ambitions in this industry. Pricer will acquire 100 per cent of the shares in Eldat and in exchange issue 261.8 million Pricer shares giving the owners of Eldat about 26 per cent ownership of Pricer. The value of the transaction is about SEK 300M (equivalent to about USD 40M or EUR 32M). The completion of the transaction, expected in July 2006, is subject to approval at the AGM of Pricer and Eldat share holders. The joint companies’ pro forma 2005 sales were 60M USD with approximately 160 employees.

 Background and motives for the acquisition

 The acquisition combines Eldat’s market successes and technological resources, ensuring that retailers will have a supplier with the resources and technological strength to maintain and deliver greater value.

 In Japan, Pricer and Eldat are the two principle ESL providers with the absolute majority of the market where Pricer through its partner Ishida is the largest ESL provider while Eldat with its partner Teraoka holds a very strong position. In France, Eldat has approximately 8 million ESL’s installed while Pricer has approximately 6 million.. The joint companies will have over 33 million ESL’s installed with over 2,700 stores including many of the world’s largest retailers.

“Pricer and Eldat are the only ESL providers that have been successful in large scale ESL deployments with integrated retailers in France and Japan, where ESL has found widespread market acceptance,” says Jan Forssjö, President and CEO, Pricer. “We believe the acquisition of this leading ESL provider consolidates our efforts to offer better value, better scale and better expertise to the existing installed base and overall market.”

“Our strategy is to now create one industry standard allowing retailers to confidently build their display solutions today and for the future,” adds Jan Forssjö. “We plan on being at the centre of the coming ESL explosion, and this acquisition ensures that resources are spent building strength in the Pricer/Eldat backbone.”

Eldat today is deploying a major French retailer and numerous stores in Japan with its partner Teraoka. The deployment with the French retailer started in 2002 and continues this year..

The Pricer solution uses infrared technology, as Eldat, to deliver fast and accurate pricing information to the shelf edge.. The Eldat offering will remain available for deployments to its customer base with no disruption, and Eldat partners will continue to have access to a world class solution. Furthermore, the joint companies will strive to combine their similar technologies into an advanced software and infrastructure platform to create a comprehensive backbone that will provide customers with a clear product roadmap based on a joint industry standard. In a world where technology platforms compete, delivering a strong display standard will enhance the merged  company’s ability to deliver more innovative devices faster, as well as advanced services and added value partnerships.

“We are looking forward to joining our strengths with the Pricer experience and leveraging our strong R&D history and commercial successes with the industry leader,” says Rami Sharon, President and CEO of Eldat. ”The customer support and development teams will continue to offer their respective product support and releases while working to integrate the processes worldwide during the transaction period.”

“Together, the two companies will provide a more compelling access to a complete ESL solution, and remove any industry uncertainties,” says Jan Forssjö. "We can jointly focus on what is most important, delivering scalable and cost effective ESL solutions to the food retailers and beyond.”

Terms and conditions of the transaction

Pricer will acquire all of Eldat’s shares and in exchange issue 261.8 million Pricer shares (Class B) to the owners of the acquired company. The Board of Pricer has today decided on this issue and it will be completed subject to shareholders’ approval. The new shares represent 25.7 percent of the total number of shares in Pricer. The shareholders of Eldat consist of venture capitals, financial institutes and private individuals and, will be represented by two members at the Board of the merged company

At current share price of SEK 1.16 the transaction value is about SEK 300M, about 40M USD.

Time plan

The Annual General Meeting of Pricer, will be held in mid June (final date yet to be determined).

Once the approvals are obtained, the transaction will be completed through the exchange of shares and the new shares will be available for trading in July.

The combined companies

Eldat had sales of USD 17.2M in 2005, gross profit of 32 percent and a net result of USD 0.2M (after adjusting for non-recurring items). Eldat employs about 45 people in offices in Tel Aviv and Paris. The combined companies’ pro forma 2005 sales are 60M USD with approximately 160 employees.

The Board of Pricer confirms the earlier cash projection forecast of reaching positive cash flow during 2006 taking into account the effects of the above mentioned transaction.

For further information, please contact:

Rami Sharon, President and CEO, Eldat Communication Ltd.: +972 3 6887879