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    EZ Energy Generates Funds for U.S. Acquisition

    Company plans for 100 store chain in the U.S.

    ISRAEL -- EZ Energy, Ltd., closed a private placement of bonds and warrants for investment institutions this week, to generate funds for the acquisition of more than 100 convenience stores located in the U.S., the Globes Online reported.

    The company doubled the offering to NIS 100 million, after the original offering was oversubscribed. EZ Energy offered index-linked bonds with 6.75 percent interest, which will be redeemed in five yearly installments starting in 2010. The company also issued warrants convertible into shares at a strike price of NIS .14 per share over four years, the report stated. The share is currently being traded at .166, after rising 34 percent since the beginning of the year.

    "We thank the capital market for the great confidence shown in EZ Energy since it went public," said EZ Energy chairman Eli Zahavi. "We intend to use the proceeds from the offering to close deals that we have announced for the purchase of over 100 gas stations and convenience stores in the U.S., as well as new deals in this field, which are now under consideration."

    The company has signed two acquisitions agreements and continued negations for three more deals, carrying a total investment of $140 million the report stated. When the five agreements are complete, the company will own 106 convenience stores in the U.S., which it estimates will generate an aggregate $375 million in revenue a year.

    EZ Energy's strategy is to locate convenience store/gas station clusters that ensure high yields, and at the same time try to introduce financial partners, the report stated. Using this strategy, the company plans to purchase a large number of gas stations through relatively small equity to complete acquisitions.

    The acquisition is expected to be finalized March 12. Clal Finance Underwriting Ltd. led the financing process.

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