Consolidated revenues for the three months period ended March 31, 2012 amounted to NIS 418 million (US$ 113 million) compared to NIS 221 million in the corresponding period in 2011.

The increase is mainly attributable to: (i) Gain from sale of the Company's share in four Dutch Hotels in the amount of NIS 188 million; (ii) an increase in revenues from commercial centers, mainly attributed to the opening of two centers by our subsidiary, Plaza centers. (iii) an increase in revenues from sale of medical systems by InSightec. (iv) an increase in revenues from investment property rental income (US), offset by a decrease in gain from fair value adjustment of investment property compared to the corresponding period in 2011.

Gain from sale of hotels amounted to NIS 188 million (US$ 51 million). The gain is mainly attributable to the sale of the Company's share in four Dutch Hotels.

Revenues from commercial centers amounted to NIS 39 million (US$ 10 million) in Q1 2012 compared to NIS 29 million in Q1 2011. The increase is mainly attributable to the operation of six commercial centers in Q1 2012 compared to the operation of four commercial centers in Q1 2011.

Cost of commercial centers amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 39 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from investment property rental income (US) amounted to NIS 71 million (US$ 19 million) in Q1 2012 compared to NIS 61 million in Q1 2011. The increase is mainly attributable to the growth in occupancy compared during the period.

Cost of investment property amounted to NIS 34 million (US$ 9 million) in Q1 2012 compared to NIS 26 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from fair value adjustment of investment property - There is no change in the fair value adjustment in Q1 2012 compared to an increase in the amount of NIS 25 million in Q1 2011.

Revenues from hotels operations and management amounted to NIS 63 million (US$ 17 million) in Q1 2012 compared to NIS 59 million in Q1 2011. The increase is mainly attributable to the increase in revenues from the Company's hotels in the Netherlands.

Costs and expenses of hotels operations and management amounted to NIS 55 million (US$ 15 million) in Q1 2012 compared to NIS 53 million in Q1 2011. The increase is attributable to the increase in the revenues as aforementioned.

Revenues from the sale of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 8 million in Q1 2011. The increase is mainly attributable to the number of the systems sold during the period.

Costs and expenses of medical systems amounted to NIS 15 million (US$ 4 million) in Q1 2012 compared to NIS 18 million in Q1 2011. The decrease in costs is attributable to efficiency measures taken by InSightec in the second half of 2011.

Research and development expenses amounted to NIS 12 million (US$ 3 million) in Q1 2012 compared to NIS 16 million in Q1 2011. The decrease in costs is attributable to the efficiency measures taken by InSightec in the second half of 2011.

Revenues from the sale of fashion retail amounted to NIS 42 million (US$ 11 million) in Q1 2012 compared to NIS 38 million in Q1 2011.

Cost of fashion retail amounted to NIS 51 million (US$ 14 million) in Q1 2012 compared to NIS 45 million in Q1 2011.

General and administrative expenses amounted to NIS 14 million (US$ 4 million) in Q1 2012 compared to NIS 15 million in Q1 2011. General and administrative expenses offset noncash expenses amounted to NIS 9 million (US$ 2 million) in Q1 2012 compared to NIS 11 million in Q1 2011. The decrease in cash expenses is attributable to the continuing efficiency measures taken with respect to payroll expenses and other expenses this year in the amount of NIS 2 million.

Financial expenses, net amounted to NIS 151 million (US$ 41 million) in Q1 2012 compared to NIS 36 million in Q1 2011. The increase of NIS 115 million relates mainly to the following:

(I) An increase in the amount of NIS 88 million (US$ 24 million) in noncash expenses, as a result of changes in fair value of financial instruments (mainly Plaza Centers' debentures, call transactions, other derivatives and marketable securities, which are measured at fair value through profit and loss).

(II) An increase in the amount of NIS 39 million (US$ 10 million) in noncash expenses in Q1 2012 attributed to currency exchange. The increase is mainly attributable to EURO-NIS revaluation in Q1 2011 in Plaza Centers' debentures, which are recorded in NIS and are measured at EURO.

(III) An increase in the amount of NIS 8 million (US$ 2 million) in interest expenses, net, attributable mainly to the increase in the interest expenses from US investment property activity.

Offset by:

(III) A decrease in the amount of NIS 20 million (US$ 5 million) in financial expenses attributable to linkage differentials in Plaza Centers and the Company's debentures with respect to the Israeli consumer price index in the amount of nil in Q1 2012 compared to NIS 20 million in Q1 2012. Such decrease derives from an immutability in the consumer price index in Q1 2012 compared to an increase in the rate of 0.87% in the consumer price index in Q1 2011.

Write-down and other expenses, net amounted to NIS 26 million (US$ 7 million) in Q1 2012 compared to NIS 14 million in Q1 2011. These expenses are mainly attributable to impairment in Plaza Centers' trading property and to initiation expenses attributable to our operations in India and in the US.

Profit for the period attributable to equity holders of the Company amounted to NIS 50 million (US$ 13 million) in Q1 2012 compared to loss in the amount of NIS 63 million in Q1 2011. Total Profit for the period in Q1 2012 amounted to NIS 14 million (US$ 4 million) compared to loss in the amount of NIS 41 million in Q1 2011.

Shareholders' equity as of March 31, 2012 amounted to NIS 1.5 billion (US$ 421 million) (out of which NIS 0.4 billion is attributed to the controlling interest). There is no fundamental change from December 31, 2011.

Our presentation to the consolidated financial statements for the first quarter of 2012 is available through our website at: [ http://www.elbitimaging.com ] under: "Investor Relations - Company Presentations (03/2012)."

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, primarily through its subsidiary Plaza Centers N.V. In certain circumstances and depending on market conditions, we operate and manage commercial and entertainment centers prior to their sale; (ii) U.S. Real Property - Investment in commercial real property in the United States; (iii) Hotels - Hotel operation and management; (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; (vi) Fashion Apparel - Distribution and marketing of fashion apparel and accessories in Israel; and (vii) Other Activities - (a) venture capital investments and (b) potential 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 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, 2011, 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

 December March 31 31 March 31 2 0 1 2 2 0 1 1 2 0 1 2 Convenience translation (in NIS thousands) US$'000 Current Assets Cash and cash equivalents 479,100 602,292 128,964 Short-term deposits and investments 393,915 409,338 106,034 Trade accounts receivable 59,476 72,049 16,010 Other receivable 212,147 101,566 57,105 Prepayments and other assets 274,207 262,861 73,811 Inventories 51,233 48,043 13,791 Trading property 4,643,699 4,556,616 1,249,986 6,113,777 6,052,765 1,645,701 Held for sale assets 2,477,980 - 667,020 Assets related to discontinued operation - - - 8,591,757 6,052,765 2,312,721 Non-Current Assets Deposits, loans and other long-term balances 379,004 380,077 102,020 Investments in associates 7,226 10,556 1,945 Property, plant and equipment 919,429 1,167,646 247,491 Investment property 117,463 2,672,571 31,619 Other assets and deferred expenses 10,042 13,037 2,703 Intangible assets 73,009 74,415 19,652 1,506,173 4,318,302 405,430 10,097,930 10,371,067 2,718,151 Current Liabilities Short-term credits 894,887 1,079,736 240,885 Borrowings relating to trading property 1,203,605 1,124,031 323,985 Suppliers and service providers 158,602 219,229 42,692 Payables and other credit balances 372,206 261,744 100,190 Other liabilities 160,304 157,144 43,150 2,789,604 2,841,884 750,902 Liabilities associated with assets held for sale (*) 1,570,984 - 422,877 Liabilities related to discontinued operation 3,232 2,941 871 4,363,820 2,844,825 1,174,650 Non-Current liabilities Borrowings 4,011,563 5,650,170 1,079,828 Other financial liabilities 48,180 215,752 12,969 Other liabilities 12,540 12,808 3,376 Deferred taxes 98,891 108,642 26,619 4,171,174 5,987,372 1,122,792 Shareholders' Equity Attributable to equity holders of the Company 407,104 359,630 109,584 Non Controlling Interest 1,155,832 1,179,240 311,125 1,562,936 1,538,870 420,709 10,097,930 10,371,067 2,718,151

(*) Including loans in the amount of NIS 542 that are expected to be repaid concurrently with those of the disposal group.

ELBIT IMAGING LTD.

CONSOLIDATED INCOME STATEMENTS

 Three months Three months ended Year ended ended March 31 December 31, March 31 2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2 Convenience translation (in NIS thousands) US$'000 Revenues and gains Gain from bargain purchase - - - - Gain from sale of real estate assets 188,254 - - 50,674 Gain from changes of shareholding in investee - - 15,450 - Commercial centers 39,407 29,148 115,270 10,608 Gain from fair value adjustment of investment property - 24,811 100,818 - Investment property rental income 70,739 61,326 254,806 19,042 Hotels operations and management 63,280 59,235 286,548 17,034 Sale of medical systems 14,700 8,556 53,324 3,957 Sale of fashion merchandise and other 41,694 38,008 185,082 11,223 418,074 221,084 1,011,298 112,538 Expenses and losses Commercial centers 42,105 38,981 159,626 11,333 Investment property expenses 34,321 26,319 112,262 9,239 Hotels operations and management 55,471 53,330 240,784 14,932 Cost and expenses of medical systems operation 15,281 17,731 101,498 4,113 Cost of fashion merchandise and other 50,664 45,170 211,743 13,638 Research and development expenses 12,240 16,441 62,851 3,295 General and administrative expenses 13,566 14,675 61,857 3,652 Share in losses of associates, net 2,839 2,016 7,568 764 Financial expenses (income) , net 150,746 35,538 (86,560) 40,577 Write-down, charges and other expenses, net 25,869 14,004 309,885 6,964 403,102 264,205 1,181,514 108,507 Profit (loss) before income taxes 14,972 (43,121) (170,216) 4,031 Income taxes (tax benefits) 731 (1,703) 86,550 197 Profit (loss) from continuing operations 14,241 (41,418) (256,766) 3,834 Profit (loss) from discontinued operation, net - - 9,737 - Profit (loss) for the period 14,241 (41,418) (247,029) 3,834 Attributable to: Equity holders of the Company 49,992 (63,295) (264,919) 13,457 Non Controlling interest (35,751) 21,877 17,890 (9,623) 14,241 (41,418) (247,029) 3,834

ELBIT IMAGING LTD.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

 Three months Three months ended Year ended ended March 31 December 31, March 31 2 0 1 2 2 0 1 1 2 0 1 1 2 0 1 2 Convenience translation (in NIS thousands) US$'000 Profit (loss) for the period 14,241 (41,418) (247,029) 3,834 Exchange differences arising from translation of foreign operations (10,046) 90,877 38,031 (2,704) Gain (loss) from cash flow hedge 8,842 - (41,577) 2,380 Gain (loss) from available for sale investments 5,638 489 (4,131) 1,518 4,434 91,366 (7,677) 1,194 Comprehensive income (loss) 18,675 49,948 (254,706) 5,028 Attributable to: Equity holders of the Company 52,120 5,078 (264,454) 14,029 Non Controlling interest (33,445) 44,870 9,748 (9,001) 18,675 49,948 (254,706) 5,028

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 Foreign currency Stock base Share Share translation Other compensation Capital premium reserve reserves (*) reserve Balance - January 1, 2011 38,051 844,574 (471,993) (33,904) 57,201 Profit of the year - - - - - Comprehensive income (loss) - - 42,876 (42,411) - Dividend paid to the Non Controlling interest by a subsidiary - - - - - Stock based compensation expenses - - - - 10,705 Exercise of shares by employees 8 20,237 - - (20,245) Initially consolidated subsidiary - - - - - Purchase of unit holdings from non controlling interest by a subsidiary - - - 155,102)) - issuance of shares to the non controlling interest by a subsidiary - - - 7,741 - December 31, 2011 38,059 864,811 (429,117) (223,676) 47,661 Profit of the year - - - - - Comprehensive income (loss) - - (10,240) 12,369 - Stock based compensation expenses - - 913 - 70 Transaction with non controlling interest - - - (5,630) - March 31, 2012 38,059 864,811 (438,444) (216,937) 47,731

 attributable to share holders of Non Total Retained Gross Treasury the Controlling shareholders' earnings Amount stock Company Interest equity Balance - January 1, 2011 495,332 929,261 (168,521) 760,740 1,416,781 2,177,521 Profit of the year (264,919) (264,919) - (264,919) 17,890 (247,029) Comprehensive income (loss) - 465 - 465 (8,142) (7,677) Dividend paid to the Non Controlling interest by a subsidiary - - - - (56,529) (56,529) Stock based compensation expenses - 10,705 - 10,705 36,278 46,983 Exercise of shares by employees - - - - - - Initially consolidated subsidiary - - - - 11,766 11,766 Purchase of unit holdings from non controlling interest by a subsidiary - (155,102) - (155,102) (226,634) (381,736) issuance of shares to the non controlling interest by a subsidiary - 7,741 - 7,741 (12,170) (4,429) December 31, 2011 230,413 528,151 (168,521) 359,630 1,179,240 1,538,870 Profit of the year 49,992 49,992 - 49,992 (35,751) 14,241 Comprehensive income (loss) - 2,129 - 2,129 2,305 4,434 Stock based compensation expenses - 983 - 983 8,738 9,721 Transaction with non controlling interest - (5,630) - (5,630) 1,300 (4,330) March 31, 2012 280,405 575,625 (168,521) 407,104 1,155,832 1,562,936

(*) includes with non-controlling interest and hedging reserve.

ELBIT IMAGING LTD.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 Foreign currency Other Stock base Share Share translation reserves compensation Capital premium reserve (*) reserve January 1, 2012 10,245 232,789 (115,509) (60,210) 12,829 Profit of the year - - - - - Comprehensive income (loss) - - (2,756) 3,330 - Stock based compensation expenses - - 246 - 19 Transaction with non controlling interest - - - (1,516) - March 31, 2012 10,245 232,789 (118,019) (58,396) 12,848

Table continues...

 attributable to share holders of Non Total Retained Gross Treasury the Controlling shareholders' earnings Amount stock Company Interest equity January 1, 2012 62,022 142,166 (45,362) 96,804 317,427 414,231 Profit of the year 13,457 13,457 - 13,457 (9,623) 3,834 Comprehensive income (loss) - 574 - 574 620 1,194 Stock based compensation expenses - 265 - 265 2,351 2,616 Transaction with non controlling interest - (1,516) - (1,516) 350 (1,166) March 31, 2012 75,479 154,946 (45,362) 109,584 311,125 420,709

(*) includes with non-controlling interest and hedging reserve.

For Further Information:

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

SOURCE Elbit Imaging Ltd.

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Elbit Imaging Ltd. Announces First Quarter Results for 2012

Elbit Imaging Ltd. Announces First Quarter Results for 2012