Hadera, Israel, 13 July 2008 -- /PRNewswire/ -- Hadera Paper Ltd. (AMEX:AIP) [AIPM] announced today that on 10 July 2008, it signed an agreement to acquire shares of Carmel Container Systems Ltd., an affiliated company, from Robert Kraft, the principal shareholder of Carmel, and a number of additional shareholders in Carmel, on an "as is" basis, for approximately USD 20.77 million, to be paid upon closing of the transaction.

The completion of the transaction is conditional upon receiving approval as required by law, including the approval of the Israeli Antitrust Authority.

The company currently holds approximately 36% of Carmel and, upon completion of the transaction, will hold approximately 89.3% of the Carmel shares.

Subsequent to the transaction, if completed, the company shall consolidate the financial statements of Carmel and Frenkel C.D. Ltd., an affiliated company of the Hadera Paper and Carmel. The principal result of the consolidation will be an anticipated increase in the company's sales (based on the 2007 results, from approximately NIS 580 million, to approximately NIS 1160 million). The acquisition will be financed from the company's own resources.

Source: Hadera Paper Ltd.