G. Willi-Food International Ltd. (NASDAQ: WILC) (the "Company" or "Willi-Food"), one of Israel's largest food importers and a single-source supplier of one of the world's most extensive range of quality kosher food products, today announced its unaudited financial results for the second quarter and for first six months ended June 30, 2009.

    Second Quarter Fiscal 2009 Summary

    - 6.0% increase in sales over second quarter of 2008

    - 6.6% increase in gross profit over second quarter of 2008

    - 21.3% gross margin in second quarter of 2009 compared with 21.2% gross
      margin in second quarter of 2008

    - Operating income of NIS 6.2 million compared to operating expense of
      NIS 1.4 million in second quarter 2008

    - Income before taxes on income of NIS 6.5 million compared to expense
      before taxes on income of NIS 1.1 million in second quarter 2008

    - Income after taxes on income of NIS 5.3 million compared to loss after
      taxes on income of NIS 1.4 million in second quarter 2008

    - Net income related to Company Shareholders of NIS 5.3 million compared
      to net loss related to Company Shareholders of NIS 2.0 million in
      second quarter 2008

Willi-Food's operating divisions include Willi-Food in Israel, wholly owned Gold Frost - a designer, developer and distributor of branded kosher dairy food products, the Company's global kosher trade and export joint venture with the Baron family, and Shamir Salads - an Israeli distributor and manufacturer of Mediterranean style salads. As previously reported by the Company on July 27, 2009, the Company now holds 100% of the shares of Gold Frost following completion of its tender offer for Gold Frost shares, and Gold Frost also sold of its 51% interest in the Danish dairy distributor.

Revenues for the second quarter of 2009 increased by 6.0% to NIS 83.8 million (US$ 21.4 million) compared to revenues of NIS 79.0 million (US$ 20.2 million) in the second quarter of 2008. The Company achieved this increase despite the cessation of the operations of Laish Israeli - the Company's U.S. subsidiary during July 2008, as reported by the Company on July 14, 2008. The increase was mainly due to expanded product lines that the Company had launched and increasing sales of existing products to new and existing customers.

Gross profit for the second quarter of 2009 increased by 6.6% to NIS 17.9 million (US$ 4.6 million) compared to gross profit of NIS 16.8 million (US$ 4.3 million) in the second quarter of 2008. Second quarter gross margin was 21.3% compared to gross margin of 21.2% for the same period in 2008.

Since the beginning of the recent recession, the Company has identified pressures in the market to lower prices and a movement of consumers to lower priced products; the Company prepared for this from the beginning of 2009. Due to the Company's lower price products for which the Company believes demand has grown, the Company's expectations have grown for increased sales and improved profits.

The Company anticipates 2009 second half profits and profit margins to be better than in the comparable period in 2008 and in the first half of 2009 for a number of reasons. First, the Company has been successful in adjusting the selling prices of its products to consumers in accordance with product prices of the Company's suppliers, which has enabled the Company to increase its gross profits margins. Second, during the last five months, the U.S. dollar has depreciated against the New Israeli Shekel by approximately 10%, which has lowered the product purchase prices that the Company pay in NIS to its suppliers.

Willi-Food's operating income for the second quarter of 2009 was NIS 6.2 million (US$ 1.6 million) compared to operating expenses of NIS 1.4 million (US$ 0.4 million) reported in the comparable quarter of last year. Selling expenses as a percentage of revenues decreased in the second quarter of 2009 to 8.9% compared to 10.7% in the second quarter of 2008. General and administrative expenses as a percentage of revenue decreased in the second quarter of 2009 to 6.5% from 9.8% in the second quarter of 2008. Part of the decrease in selling and general and administrative expenses was attributed to the actions taken by the Company's management during the first quarter of 2009 to reduce the Company's expenses.

Willi-Food's income before taxes for the second quarter of 2009 was NIS 6.5 million (US$ 1.7 million) compared to loss before taxes of NIS 1.1 million (US$ 0.3 million) recorded in the second quarter of 2008. Willi-Food's net income in the second quarter of 2009 was NIS 5.3 million (US$ 1.4 million) compared to net loss of NIS 1.4 million (US$ 0.4 million) recorded in the second quarter of 2008. Willi- Food's net income related to Company Shareholders in the second quarter of 2009 was NIS 5.3 million (US$ 1.4 million), or NIS 0.52 (US$ 0.13) per share compared to net loss related to Company Shareholders of NIS 2.0 million (US$ 0.5 million), or NIS 0.19 (US$ 0.05) per share, recorded in the second quarter of 2008.

Willi-Food ended the quarter with $27.4 million in cash and securities and $4.2 million in short-term debt. Six-Month Results

Willi-Food's revenues for the six-month period ended June 30, 2009 decreased by 3.3% to NIS 179.3 million (US$ 45.8 million) compared to revenues of NIS 185.5 million (US$ 47.3 million) in the first half of 2008. Gross profit for the period decreased 15.3% to NIS 39.7 million (US$ 10.1 million) compared to gross profit of NIS 46.8 million (US$ 11.9 million) for the six month period in 2008. 2009 first half gross margins were 22.1% compared to gross margins of 25.2% in the same period in 2008.

Operating income for the first half of 2009 increased by 9.5% to NIS 14.7 million (US$ 3.7 million) from NIS 13.4 million (US$ 3.4 million) reported in the comparable period of last year. First half 2009 income before taxes was NIS 15.0 million (US$ 3.8 million) compared to NIS 12.0 million (US$ 3.1 million) recorded in the first half of 2008. Net income related to Company Shareholders for the first half of 2009 increased by 73.9% to NIS 11.5 million (US$ 2.9 million), or NIS 1.12 (US$ 0.29) per share compared to net income related to Company Shareholders for the first half of 2008 of NIS 6.6 million (US$ 1.7 million), or NIS 0.64 (US$ 0.16) per share.

Outlook

Mr. Zwi Williger, President and COO of Willi-Food commented, "We are very pleased with our strong second quarter 2009 results in the current challenging environment. We have been able to grow revenues, despite the closing of Laish in July 2008, through successfully launching new items into our product line, as well as increasing sales of existing products to new and existing customers, and we were able to contain costs to an acceptable degree despite the immediate challenges. We have seen strong market response to our expanded product lines. We expect to launch additional new product lines in the second half of 2009, and we continue to develop new innovations food products."

"Willi-Food achieved net income related to Company Shareholders of NIS 5.3 million in the second quarter of 2009 - margin of 6.4% of revenues. The net income related to Company Shareholders without the effect of our subsidiaries - Shamir salads and Baron joint venture, that together achieved net loss of NIS 0.85 million in 2009 second quarter, would have been higher. Our strong financial results for the second quarter of 2009 demonstrate Willi-Food's ability to capitalize on what we believe to be the growing interest of consumers in the kosher market. We are able to differentiate our company through our success at becoming a high margin business in a low margin industry. We are pleased to consistently deliver significantly higher margins than those generated by most other companies in our industry."

"We analyzed the recession that began in our home market and in fact, the economic indicators, as well as the feedback from our customers, showing that the measures that we took is putting us in a good position for future growth. Willi-Food has taken the appropriate measures to position the Company for a stronger fiscal 2009 and 2010 and we remain focused on maximizing long-term profitability."

"We are carefully reviewing our merger and acquisition strategy. The U.S. remains a strategic region of interest for Willi-Food, and for now, we are seeking more customers to distribute our products; customers who wish to grow their volume and diversify their line of premium kosher products. Our line of products includes over 600 products exclusively distributed by Willi-Food and Shamir Salads. The dynamics of the industry are driving demand for innovative kosher products, and we believe that Willi-Food has the infrastructure and development expertise to deliver. Our strategy is to leverage Willi-Food's global supplier relationships and expertise in product development to capitalize on the growing demand for innovative kosher products for both kosher and health consumers in the U.S. The health benefits of eliminating animal fats in the 'kosherizing' process, in our dairy products, make our products attractive to consumers looking for better tasting low-cholesterol and low-fat alternatives."

Mr. Williger concluded, "We continue to work to expand the footprint and brand recognition of Willi-Food globally while diversifying our product base in order to hedge against any single event impacting our results. We are looking for improved Willi-Food's results in the second half of 2009 as compared to our 2008 second half results and as compared to 2009 first half results."

Update on Shamir Salads

As previously announced on June 1, 2009, the district court in Tel Aviv issued a temporary injunction against the minority shareholders of Shamir Salads (the "Sellers"), with whom the Company had entered into a January 2, 2008 agreement to purchase approximately 51% of the shares of Shamir Salads (the "Shamir Agreement"). Pursuant to the injunction issued by the court, the Sellers are prohibited from taking any action not in accordance with the signatory rights in Shamir Salads in effect prior to May 18th, performing any disposition of the shares of Shamir Salads held by the Company, taking any action not in accordance with the articles of association of Shamir Salads as in effect prior to May 18th, 2009, and/or interfering with the functions of Shamir Salads' board of directors as composed prior to May 18th, 2009. In addition, pursuant to the injunction, the Sellers are prohibited from interfering with the functions of the co-CEO of Shamir Salads nominated by the Company and/or from preventing the deputy CFO of Shamir Salads' from participating in the discussions to approve the financial statements of Shamir Salads.

On June 17, 2009, the Sellers petitioned the district court in Tel Aviv for temporary relief against the Company and others, a declaratory judgement and other relief in connection with an alleged fundamental breach by the Company of the Shamir Agreement and for the return of the shares in Shamir Salads and the consideration paid therefore. On June 22, 2009, an arbitrator was chosen to address all disputes between the parties. As part of the arbitration proceeding, the Sellers and the Company each submitted a complaint against the other for damages on August 4, 2009. The Company intends to vigorously defend its rights in this matter. Until the arbitration procedures will end, the temporary injunction against the Sellers will remain in effect.

Joint venture with the Baron Family

It has recently been discovered that a customer that owes Baron approximately Euro 0.4 million, terminated its operations. Baron has security interests on this debt, including a first priority lien on a portion of the house of the customer, and as a result no reserve has been set aside for this debt in 2009 second quarter. At this time the Company is examining the nature of the security interests, and following such examination, the Company will decide if there is a need to set aside a reserve for this debt in the third quarter of this year. In the event the Company decides that there is a need to set aside a reserve, the Company will consider making a claim against the Baron family on the damage they caused to the Company in their capacity as managers, due to the fact that they breached their fiduciary duties against the joint venture and sold to a customer without approval and against the decision of the board of directors of the joint venture.

About G. Willi-Food International, Ltd.

G. Willi-Food International Ltd. is one of Israel's largest food importers and a single-source supplier of one of the world's most extensive ranges of quality kosher food products. It currently imports, markets and distributes more than 2,500 food products manufactured by some 120 top-tier suppliers throughout the world to more than 1,500 customers. Willi-Food excels in identifying changing tastes in its markets and sourcing high-quality kosher products to address them. The Company also operates several subsidiaries: its wholly owned subsidiary, Gold Frost Ltd., develops and distributes kosher chilled and frozen dairy food products internationally; the joint venture with the Baron Family engages in the global import, export and distribution of kosher products worldwide; and Shamir Salads is a leading international manufacturer and distributor of pre-packaged chilled Mediterranean dips and spreads. For more information, please visit the Company's website at http://www.willi-food.co.il.

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding trends, demand for our products and expected revenues, operating results, and earnings. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. These risks and other factors include but are not limited to: changes affecting currency exchange rates, including the NIS/U.S. Dollar exchange rate, payment default by any of our major clients, the loss of one of more of our key personnel, changes in laws and regulations, including those relating to the food distribution industry, and inability to meet and maintain regulatory qualifications and approvals for our products, termination of arrangements with our suppliers, in particular Arla Foods, loss of one or more of our principal clients ,increase or decrease in global purchase prices of food products, increasing levels of competition in Israel and other markets in which we do business, changes in economic conditions in Israel, including in particular economic conditions in the Company's core markets, our inability to accurately predict consumption of our products and risks associated with product liability claims. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2008, filed with the Securities and Exchange Commission. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information contained in this press release.

NOTE A: Convenience Translation to Dollars

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was made at the rate of exchange prevailing on June 30, 2009, U.S. $1.00 equals NIS 3.919. The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the six-month and three-month ended June 30, 2009 are presented in accordance with International Financial Reporting Standards ("IFRS").

                       G. WILLI-FOOD INTERNATIONAL LTD.
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                     June 30, December 31,  June 30, December
                                                                          31,
                                        2009         2008      2009      2008
                                             NIS             US dollars (*)
                                                 (in thousands)
    ASSETS
    Current assets
    Cash and cash equivalents         95,250       78,749    24,305    20,094
    Financial assets carried at
    fair value through profit or
    loss                              12,150        9,367     3,100     2,390
    Trade receivables                 82,383       79,599    21,021    20,311
    Other receivables and prepaid
    expenses                           4,230        3,987     1,079     1,017
    Current tax assets                   351        2,456        90       627
    Inventories                       20,513       34,417     5,234     8,782
    Total current assets             214,877      208,575    54,829    53,221

    Fixed assets
    Cost                              56,056       55,574    14,304    14,181
    Less: accumulated depreciation    15,069       13,467     3,845     3,436
    and amortization
                                      40,987       42,107    10,459    10,745

    Prepaid expenses                  12,975       12,539     3,311     3,199
    Goodwill                           3,829        3,829       977       977
    Intangible assets                  4,961        5,181     1,266     1,322
    Deferred taxes                       454        1,111       116       283
    Total non-current assets          63,206       64,767    16,129    16,526

                                     278,083      273,342    70,958    69,747
    LIABILITIES AND SHAREHOLDERS'
    EQUITY
    Current liabilities
    Short-term bank credit            16,498       17,562     4,210     4,481
    Trade payables                    46,568       53,728    11,883    13,710
    Accruals                           5,328        6,197     1,360     1,581
    Current tax liabilities            2,054        1,050       524       268
    Other payables and accrued
    expenses                           6,607        4,971     1,685     1,268
    Employees Benefits                 2,384        2,544       608       649
    Total current liabilities         79,439       86,052    20,270    21,957

    Non-current liabilities
    Long-term bank loans                 144          267        37        68
    Deferred taxes                       259          442        66       113
    Warrants to issue shares               -            5         -         1
    Employees Benefits                 1,005          994       256       254
    Total long term liabilities        1,408        1,708       359       436

    Shareholders' equity
    Share capital NIS 0.10 par
    value
    (authorized - 50,000,000
    shares, issued
    and outstanding - 10,267,893
    shares                             1,113        1,113       284       284
    Premium                           59,056       59,056    15,069    15,069
    Capital fund                         247          247        63        63
    Foreign currency translation
    reserve                              324          369        83        94
    Retained earnings                122,942      111,447    31,371    28,438
    Noncontrolling interest           13,554       13,350     3,459     3,406
                                     197,236      185,582    50,329    47,354

                                     278,083      273,342    70,958    69,747

    (*)Convenience translation into U.S. dollars


                       G. WILLI-FOOD INTERNATIONAL LTD.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                       Six months           Three months         Six months
                                  ended June 30,               ended June 30,
                    2009        2008      2009      2008      2009      2008
                                     NIS                     US dollars (*)
                        In thousands (except per share and share data)

    Sales          179,328    185,481    83,758    79,036    45,758    47,328
    Cost of sales  139,674    138,659    65,893    62,271    35,640    35,381

    Gross profit    39,654     46,822    17,865    16,765    10,118    11,947

    Selling
    expenses        15,427     17,538     7,462     8,436     3,936     4,475
    General and
    administrative
    expenses        10,887     13,901     5,463     7,752     2,778     3,547
    Other (Income)

    Expense        (1,333)      1,981   (1,238)     1,981     (340)       505

    Total
    operating
    expenses        24,981     33,420    11,687    18,169     6,374     8,527

    Operating
    income
    (Expense)       14,673     13,402     6,178   (1,404)     3,744     3,420

    Financial income   935    (1,514)       263     (771)       239     (386)

    Financial expense  646       (75)      (69)   (1,042)       165      (19)

    Income          14,962     11,963     6,510   (1,133)     3,818     3,053
    (expense
    before
    taxes on
    income
    Taxes on
    income           2,883      3,750     1,189       312       736       957

    Income (loss)   12,079      8,213     5,321   (1,445)     3,082     2,096
    after taxes on
    income

    Related to:
    Company         11,495      6,609     5,319   (1,986)     2,933     1,687
    Shareholders'
    Minority           584      1,604         2       541       149       409
    interest

    Net income      12,079      8,213     5,321   (1,445)     3,082     2,096
    (loss)

    Earnings per
    share data:

    Earnings per
    share:

    Basic             1.12       0.64      0.52    (0.19)      0.29      0.16

    Diluted           1.12       0.64      0.52    (0.19)      0.29      0.16

    Shares used in
    computing
    basic and
    diluted
    earnings per
    ordinary                                    10,267,893
    share:      10,267,893 10,267,893 10,267,893        10,267,893 10,267,893

     (*) Convenience translation into U.S. dollars

    Company Contact:
    G. Willi Food International Ltd.
    Ety Sabach, CFO
    +972-8-932-1000
    ety@willi-food.co.il

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