Elbit Medical Imaging Ltd. ("EMI") (Nasdaq: EMITF), announced today that on June 11, 2006 it had agreed with Israeli investors to issue approximately NIS 68 million aggregate principal amount of unsecured non-convertible Series A Debentures to investors in Israel. Such debentures would be in addition to the NIS 400 million in principal amount of Series A Debentures and NIS 59 million in principal amount of Series B Debentures, which were issued to Israeli investors in Israel during February and March 2006. It is expected that the issuance of the new debentures will be completed today, June 12, 2006.

The newly issued Series A debentures and the previously issues Series A debentures will be considered as one series for all purposes and have the same terms. The principal terms of the Series A Debentures were announced by EMI on February 21, 2006. As with the existing debentures, the newly issued debentures will be listed for trade on the "Institutional Retzef" which is a trading system for institutional investors in Israel. The debentures will not initially be registered for trade on the Tel Aviv Stock Exchange or any other exchange, although EMI has undertaken to use its best efforts to register the debentures for trade on the Tel Aviv Stock Exchange no later than August 30, 2006.

The Debentures will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not be deemed to be an offer to sell or a solicitation of an offer to buy any of these securities.

About Elbit Medical Imaging Ltd.

EMI is a subsidiary of Europe Israel (M.M.S.) Ltd. EMI's activities are divided into three principal fields: (i) ownership, operation, management, acquisition, expansion and development of commercial and entertainment malls in Europe, primarily in Eastern and Central Europe; (ii) ownership, operation, leasing, management, acquisition, expansion and development of hotels in major European cities and ownership, operation and management of a commercial and entertainment mall in Israel through its subsidiary, Elscint Ltd.; and (iii) research and development in the image guided focused ultrasound activities through its subsidiary, InSightec Ltd.

Any forward looking statements with respect to EMI's business, financial condition and results of operations included in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development and the effect of EMI's accounting policies, as well as certain other risk factors which are detailed from time to time in EMI's filings with the Securities and Exchange Commission including, without limitation, Annual Report on Form 20-F for the fiscal year ended December 31, 2004, filed with the Securities and Exchange Commission on June 30, 2005 and EMI's Registration Statement on Form F-4/A filed with the Securities and Exchange Commission on September 23, 2005.

For Further Information:

Company Contact Investor Contact

Shimon Yitzhaki Kathy Price

Elbit Medical Imaging Ltd. The Global Consulting Group

(972-3) 608-6000 1-646-284-9430

syitzhaki@europe-israel.com kprice@hfgcg.com

Source: prnewswire