Consolidated revenues for the three month period ended September 30, 2011 amounted to NIS 258 million (US$ 70 million) compared to NIS 238 million reported in the corresponding period in 2010.

The increase is mainly attributable to: (i) Gain from changes of shareholding in investee entities as a result of increasing our holding in EPN from 43% to approximately 45% in the amount of NIS 15 million; (ii) an increase from Gain from fair value adjustment of investment property attributable to EDT in the amount of NIS 29 million; (iii) improvement in the results of our existing hotels in the Netherlands, Belgium and Romania; offset by (iv) decrease in revenues in our hotel segments due to the sale of our UK hotels in December 2010.

Revenues from commercial centers in Q3 2011 amounted to NIS 26 million (US$ 7 million) compared to NIS 25 in the corresponding period in 2010.

Cost of commercial centers in Q3 2011 amounted to NIS 38 million (US$ 10 million) compared to NIS 35 million reported in the corresponding period in 2010.

Gain from fair value adjustment of investment property in Q3 2011 amounted to NIS 29 million (US$ 8 million) compared to nil in the corresponding period in 2010. The gain is attributable to the revaluation of EDT's retail properties.

Revenues from investment property rental income in Q3 2011 amounted to NIS 61 million (US$ 16 million) compared to NIS 63 in the corresponding period in 2010.

Cost of investment property in Q3 2011 and in Q3 2010 amounted to NIS 25 million (US$ 7 million).

Revenues from hotels operations and management in Q3 2011 amounted to NIS 72 million (US$ 19 million) compared to NIS 99 million reported in the corresponding period in 2010. The revenue from our existing hotels in Holland, Belgium and Romania were improved in Q3 2011 compared to the corresponding period in 2010 in the amount of NIS 7 million (US$ 2 million). Nevertheless, due to the sale of our UK hotels in December 2010, there is a decrease in the overall revenues from the hotels activity in Q3 2011 compared to the corresponding period in 2010.

Costs and expenses from hotels operations and management in Q3 2011 amounted to NIS 61 million (US$ 17 million) compared to NIS 86 million reported in the corresponding period in 2010. The decrease is mainly attributable to the sale of our UK hotels, in December 2010.

Revenues from sales from medical systems in Q3 2011 amounted to NIS 14 million (US$ 4 million) compared to NIS 7 million in the corresponding period in 2010. The increase is mainly attributable to the number of the systems sold during the period.

Costs and expenses from medical systems operations in Q3 2011 amounted to NIS 15 million (US$ 4 million) compared to NIS 14 million in the corresponding period in 2010.

Research and development expenses in Q3 2011 and in Q3 2010 amounted to NIS 14 million (US$ 4 million).

Revenues from sales of fashion merchandise in Q3 2011 amounted to NIS 41 million (US$ 11 million) compared to NIS 44 million reported in the corresponding period in 2010. The decrease is mainly attributable to timing of the Jewish Holidays in 2011 (October) as opposed to 2010 (September).

Cost and expenses of fashion merchandise and others in Q3 2011 amounted to NIS 51 million (US$ 14 million) compared to NIS 52 million reported in the corresponding period in 2010. The decrease is mainly attributable to the decrease in retail operations as mentioned above.

General and administrative expenses in Q3 2011 amounted to NIS 17 million (US$ 5 million) compared to NIS 14 million reported in the corresponding period in 2010. Such increase is mainly due to an increase in non cash stock based compensation expenses to NIS 8.5 million (US$ 2 million) in Q3 2011 compared to NIS 4 million in the corresponding period in 2010.

Financial income, net in Q3 2011 amounted to NIS 96 million (US$ 26 million) compared to financial expenses, net of NIS 76 million reported in the corresponding period in 2010. Such decrease of NIS 172 million relates mainly to the following:

(I) An increase in financial income amounted to NIS 161 million (US$ 43 million), attributable mainly to non-cash income derived from changes in fair value of financial instruments (mainly Plaza Centers N.V. notes, currency and interest hedge transactions, derivatives and marketable securities) all measured at fair value through profit and loss.

(II) A decrease in interest expenses, net in the amount of NIS 15 million (US$ 4 million), net of: (i) interest income; (ii) capitalization of financial expenses to qualified assets; and (iii) linkage differences in respect of bonds which are linked to the Israeli consumer price index). Such decrease in interest expenses related to: (i) sale of the UK hotels in December 2010 and (ii) the increase of 0.58% in the Israeli Consumer Price Index during Q3 2011 compared to 1.2% in the corresponding period of 2010.

Offset by

(III) An increase in the amount of NIS 4 million (US$ 1 million), in non-cash expenses related to exchange rate differences. The increase is mainly attributable to exchange rate fluctuation in respect to Plaza Center N.V.'s notes and one of the loans in the hotel segment.

Impairment charges and other expenses, net in Q3 2011 amounted to NIS 101 million (US$ 27 million) compared to NIS 14 million reported in the corresponding period in 2010. These expenses are attributable mainly to impairment of Plaza Centers N.V. trading property and due to impairment of deferred expenses and impairment of plots in dairy and farm activity, and to initiation expenses attributable to our operations in India and in the USA.

Income before taxes in Q3 2011 amounted to NIS 28 million (US$ 8 million) compared to loss in the amount of NIS 95 million reported in the corresponding period in 2010.

Loss in Q3 2011 amounted to NIS 26 million (US $7 million) out of which loss in the amount of NIS 40 million (US$ 11 million) is attributable to our equity holders and income in the amount of NIS 14 million (US$ 4 million) is attributable to the non-controlling interest.

Our shareholders' equity as of September 30, 2011 amounted to NIS 1.8 billion (US$ 490 million) compared to NIS 2.17 billion in December 31, 2010.

Our presentation to the consolidated financial statements for the third quarter of 2011 is available through our website at: [ http://www.elbitimaging.com ] under: "Investor Relations - Company Presentations (09/2011)."

About Elbit Imaging Ltd.

Elbit Imaging Ltd. operates in the following principal fields of business: (i) Commercial and Entertainment Centers - Initiation, construction and sale of shopping and entertainment centers and other mixed-use real property projects, predominantly in the retail sector, located in Central and Eastern Europe and in India; (ii) U.S. Real Property - Investment in commercial real property in the United States; (iii) Hotels - Hotel operation and management, primarily in major European cities; (iv) Medical Industries - (a) research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment and (b) development of stem cell population expansion technologies and stem cell therapy products for transplantation and regenerative medicine; (v) Residential Projects - Initiation, construction and sale of residential projects and other mixed-use real property projects, predominately residential, located primarily in India and in Eastern Europe; (vi) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel; and (vii) Other Activities - (a) venture capital investments and (b) investments in hospitals and farm and dairy plants in India. We have presently decided to suspend our investment activities in hospitals and farm and dairy plants in India until we are satisfied that the economy has recovered sufficiently to resume such activities.

Any forward-looking statements in our releases include statements regarding the intent, belief or current expectations of Elbit Imaging Ltd. and our management about our business, financial condition, results of operations, and its relationship with its employees and the condition of our properties. Words such as "believe," "expect," "intend," "estimate" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors including, without limitation, the factors set forth in our filings with the Securities and Exchange Commission including, without limitation, Item 3.D of our annual report on Form 20-F for the fiscal year ended December 31, 2010, under the caption "Risk Factors." Any forward-looking statements contained in our releases speak only as of the date of such release, and we caution existing and prospective investors not to place undue reliance on such statements. Such forward-looking statements do not purport to be predictions of future events or circumstances, and therefore, there can be no assurance that any forward-looking statement contained our releases will prove to be accurate. We undertake no obligation to update or revise any forward-looking statements.

ELBIT IMAGING LTD.

CONSOLIDATED BALANCE SHEETS

 September December September 30 31 30 2 0 1 1 2 0 1 0 2 0 1 1 Convenience translation (in NIS thousands) US$'000 Current Assets Cash and cash equivalents 884,357 1,040,797 210,737 Short-term deposits and investments 494,336 835,730 160,678 Trade accounts receivable 50,350 55,084 13,564 Other receivable 106,759 108,940 28,760 Prepayments and other assets 280,750 295,305 75,633 Inventories 58,774 44,643 15,834 Trading property 4,677,462 4,192,241 1,260,092 6,552,788 6,572,740 1,765,298 Assets related to discontinued operation - - - 6,552,788 6,572,740 1,765,298 Non-Current Assets Deposits, loans and other long-term balances 407,700 645,842 109,833 Investments in associates 13,771 25,127 3,710 Property, plant and equipment 1,179,541 1,157,206 317,764 Investment property 2,559,019 2,232,322 689,391 Other assets and deferred expenses 14,971 21,160 4,033 Intangible assets 75,321 48,316 20,291 4,250,323 4,129,973 1,145,022 10,803,111 10,702,713 2,910,320 Current Liabilities Short-term credits 1,427,907 1,638,516 384,673 Borrowings relating to trading property 1,029,866 808,030 277,442 Suppliers and service providers 194,248 109,426 52,330 Payables and other credit balances 275,390 196,445 74,189 Other liabilities 144,837 126,590 39,018 3,072,248 2,879,007 827,652 Liabilities related to discontinued operation 13,168 12,615 3,548 3,085,416 2,891,622 831,200 Non-Current liabilities Borrowings 5,612,682 5,524,260 1,512,037 Other financial liabilities 197,679 75,532 53,254 Other liabilities 14,263 14,005 3,843 Deferred taxes 81,446 19,773 21,941 5,906,070 5,633,570 1,591,075 Shareholders' Equity Attributable to equity holders of the Company 558,026 760,740 150,330 Minority Interest 1,253,599 1,416,781 337,715 1,811,625 2,177,521 488,045 10,803,111 10,702,713 2,910,320

ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS

 Nine months ended Three months ended Year ended Nine months ended September 30 September 30 December 31, September 30 2011 2010 2011 2010 2010 2011 Convenience translation (in NIS thousands) US$'000 Revenues and gains Gain from bargain purchase - (*)397,082 - - 397,082 4,163 Gain from sale of real estate assets - - - - 198,777 - Gain from changes of shareholding in investees entities 15,453 - 15,453 - - - Commercial centers 81,614 72,228 25,948 24,854 102,895 21,987 Gain from fair value adjustment of investment property 78,815 - 29,030 - 40,226 21,233 Investment property rental income 182,318 63,397 60,544 63,397 122,462 49,116 Hotels operations and management 209,987 293,093 71,840 99,226 403,822 56,570 Sale of medical systems 27,503 22,916 14,386 6,633 33,631 7,409 Sale of fashion merchandise and others 124,447 124,893 40,859 43,573 174,817 33,526 720,137 973,609 258,060 237,683 1,473,712 194,004 Expenses and losses Commercial centers 112,905 112,412 38,525 35,427 156,745 30,417 Investment property expenses 76,885 25,260 25,558 25,260 50,571 20,712 Hotels operations and management 179,104 250,190 61,372 86,323 341,291 48,250 Cost and expenses of medical systems operation 51,564 46,018 15,166 13,880 63,973 13,891 Cost of fashion merchandise and others 148,842 142,278 51,258 51,869 197,574 40,097 Research and development expenses 46,770 43,278 14,392 13,690 58,514 12,600 General and administrative expenses 49,587 49,029 17,277 14,434 65,292 13,359 Share in losses of associates, net 5,200 7,172 1,327 2,300 8,275 1,401 Financial expenses (income) , net (86,288) 226,940 (95,789) 75,899 372,769 (23,246) Impairments, charges and other expenses, net 137,724 31,821 101,142 14,009 84,664 37,102 722,293 934,398 230,228 333,091 1,399,668 194,583 Income (loss) before income taxes (2,156) 39,211 27,832 (95,407) 74,044 (579) Income taxes (tax benefits) 51,560 3,993 53,761 (13,275) 4,920 13,893 Income (loss) from continuing operations (53,716) 35,218 (25,929) (82,132) 69,124 (14,472) Profit (loss) from discontinued operation, net - (2,372) - (2,372) 4,401 - Income (loss) for the period (53,716) 32,846 (25,929) (84,504) 73,525 (14,472) Attributable to: Equity holders of the Company (133,020) 5,410 (39,513) (85,261) 61,998 (35,836) Minority interest 79,304 27,436 13,584 757 11,527 21,364 (53,716) 32,846 (25,929) (84,504) 73,525 (14,472)

(*) Retrospectively adjusted in connection with a business combination

ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

 Year ended Nine months Nine months Three months ended ended ended December September September 30 September 30 31, 30 2011 2010 2011 2010 2010 2011 (in NIS thousands) Convenience Income (loss) for the period (53,716) 32,846 (25,929) (84,504) 73,525 (14,472) Exchange differences arising from translation of foreign operations 102,444 (220,168) 75,602 44,062 (403,560) 27,598 Loss from cash flow hedge - (8,141) - 784 39,220 - Gain (loss) from available for sale investments (11,206) 2,529 (11,750) 4,462 (864) (3,019) 91,238 (225,780) 63,852 49,308 (365,204) 24,579 Comprehensive income (loss) 37,522 (192,934) 37,923 (35,196)(291,679) 10,107 Attributable to: Equity holders of the Company (68,206)(124,904) (2,962) (37,051)(128,992) (18,375) Minority interest 105,728 (68,030) 40,885 1,855 (162,687) 28,483 37,522 (192,934) 37,923 (35,196)(291,679) 10,107

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 Cumulative Foreign Available currency for sale Stock base Share Share translation Hedging and other compensation Capital premium adjustments reserves reserves reserve (in NIS thousands) Balance - December 31, 2009 38,038 835,269 (242,304) (39,221) 2,763 57,090 Comprehensive income (loss) - - (229,689) 39,221 (522) - Purchase of parent shares by a subsidiary - - - - - - Stock based compensation expenses - - - - - 9,429 Employee stocks expired 6,832 (6,832) Initially consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - (36,145) - Exercise of shares by employees 13 2,473 - - - (2,486) Purchase of the minority interest - - - - - - December 31, 2010 38,051 844,574 (471,993) - (33,904) 57,201

Table Continued Below

 Total amount attributable to equity holders of Total Retained Gross Treasury the Minority shareholders' earnings Amount stock Company Interest equity (in NIS thousands) Balance - December 31, 2009 433,334 1,084,969 (138,519) 946,450 1,201,721 2,148,171 Comprehensive income (loss) 61,998 (128,992) - (128,992) (162,687) (291,679) Purchase of parent shares by a subsidiary - - (30,002) (30,002) - (30,002) Stock based compensation expenses - 9,429 - 9,429 23,380 32,809 Employee stocks expired - - - Initially consolidated subsidiary - - - - 182,843 182,843 issuance of shares to the minority by a subsidiary - (36,145) - (36,145) 171,524 135,379 Exercise of shares by employees - - - - - - Purchase of the minority interest - - - - - - December 31, 2010 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 Cumulative Foreign Available currency for sale Stock base Share Share translation Hedging and other compensation Capital premium adjustments reserves reserves reserve (in NIS thousands) Balance - December 31, 2010 38,051 844,574 (471,993) - (33,904) 57,201 Comprehensive income (loss) - - 71,846 - (7,032) - Dividend paid to the minority by a subsidiary - - - - - - Stock based compensation expenses - - - - - 9,446 Employee stocks expired 8 20,258 - - - (20,266) Initially consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - (143,954) - Exercise of shares by employees - - - - - - September 30, 2011 38,059 864,832 (400,147) - (184,890) 46,381

Table Continued Below

 Total amount attributable to equity holders of Total Retained Gross Treasury the Minority shareholders' earnings Amount stock Company Interest equity (in NIS thousands) Balance - December 31, 2010 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521 Comprehensive income (loss) (133,020) (68,206) - (68,206) 105,728 37,522 Dividend paid to the minority by a subsidiary - - - - (55,769) (55,769) Stock based compensation expenses - 9,446 - 9,446 15,787 25,233 Employee stocks expired - - - - - - Initially consolidated subsidiary - - - - 11,766 11,766 issuance of shares to the minority by a subsidiary - (143,954) - (143,954) (240,694) (384,648) Exercise of shares by employees - - - - - - September 30, 2011 362,312 726,547 (168,521) 558,026 1,253,599 1,811,625

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 Cumulative Foreign Available currency for sale Stock base Share Share translation Hedging and other compensation Capital premium adjustments reserves reserves reserve Convenience translation US$'000 December 31, 2010 10,251 227,525 (127,153) - (9,134) 15,410 Comprehensive income (loss) - - 19,355 - (1,894) - Purchase of parent shares by a subsidiary - - - - - - Stock based compensation expenses - - - - - 2,545 Employee stocks expired 2 5,458 - - - (5,460) Initially consolidated subsidiary - - - - - - issuance of shares to the minority by a subsidiary - - - - (38,781) - Exercise of shares by employees - - - - - - September 30, 2011 10,253 232,983 (107,798) - (49,809) 12,495

Table Continued Below

 Total amount attributable to equity holders of Total Retained Gross Treasury the Minority shareholders' earnings Amount stock Company Interest equity Convenience translation US$'000 December 31, 2010 133,441 250,340 (45,399) 204,941 381,676 586,617 Comprehensive income (loss) (35,836) (18,375) - (18,375) 28,482 10,107 Purchase of parent shares by a subsidiary - - - - (15,024) (15,024) Stock based compensation expenses - 2,545 - 2,545 4,253 6,798 Employee stocks expired - - - - - - Initially consolidated subsidiary - - - - 3,170 3,170 issuance of shares to the minority by a subsidiary - (38,781) - (38,781) (64,842) (103,623) Exercise of shares by employees - - - - - - September 30, 2011 97,605 195,729 (45,399) 150,330 337,715 488,045

 For Further Information: Company Contact: Investor Contact: Dudi Machluf Mor Dagan Chief Executive Officer (Co-CEO) Investor Relations Tel: +972-3-608-6024 Tel: +972-3-516-7620 [ dudim@elbitimaging.com ][ mor@km-ir.co.il ]

SOURCE Elbit Imaging Ltd.

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Elbit Imaging Ltd. Announces Third Quarter Results for 2011

Elbit Imaging Ltd. Announces Third Quarter Results for 2011