PRESS RELEASES > February 27, 2004

Retalix and MTXEPS Announce Signing of Strategic Relationship Agreement

Retalix to integrate MTXEPS Electronic Payment Engine into Retalix Point of Sale applications

Dallas, TX, February 27, 2004 – Retalix USA., (NASDAQ: RTLX), and MTXEPS Inc., today announced the signing of a Strategic Agreement with MTXEPS to integrate the company’s WinEPS Electronic Payments engine into Retalix’s POS software applications for the Grocery, Drug and Convenience Store sectors.

WinEPS provides a range of electronic payment options including Debit and Credit transactions, EBT, Gift Card, Phone Card, and Check Authorization. The Windows-based solution will enable Retalix POS customers to benefit from advanced features including automatic tender resolution, automatic debit/credit conversion and customer-defined configuration capabilities. Retalix will serve as the single point of contact for the POS and the electronic payment solution, both for applications and support.

“MTXEPS is a proven payment solution provider and recognized as an industry leader,” said Jeff Yelton, CEO and President of Retalix USA. “We are delighted to be working them and are pleased that our customers will now be able to benefit from a complete and integrated payment solution with a single point of contact.”

"We are excited about expanding our relationship with Retalix, leading to an even tighter integration of our products than we have today" said Jon Elwood, President of MTXEPS Inc. "By partnering with Retalix, WinEPS customers will benefit by having the most feature-rich integration to Retalix products, today and in the future."

About MTXEPS, Inc.
MTXEPS is a privately held company, based in California, which markets their products directly and through their reseller channels. The WinEPS software product has been in the market place for over 10 years and now is a feature-rich, mature product with over 5,000 installations. For additional information, please visit www.MTXEPS.com.

About Retalix Ltd.
Retalix Ltd., with North American headquarters in Dallas, TX, provides integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores, fuel stations and restaurants. The Company offers a full suite of software applications that support a food retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability. With installations in more than 25,000 stores, fuel stations and quick service restaurants across 44 countries, the Company markets its software solutions through direct sales, distributors, local dealers and its various subsidiaries. The Company was founded in 1982 as Point of Sale Limited and changed its name in November of 2000 to Retalix Ltd. The Company's ordinary shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the NASDAQ National Market System since July 1998. For further information, please visit the Company's web sites at www.retalix.com.

Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, including revenues, income and expenses, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include risks relating to the Company’s anticipated future financial performance, continued roll-outs with existing customers, the market reception of its new e-marketplace and ASP services, the potential benefits to food and fuel retailers and suppliers, expansion into new geographic markets, the conversion of sales leads into customers and the ramp-up of ASP users, the integration of the Company’s acquisition of OMI and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F for the year ended December 31, 2002, for a discussion of these and other important risk factors. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.