RETALIX LTD.

The following table shows the impact of the corrections made and included in the financial statements attached herein on our previously published
quarterly results of operations for the year ended December 31, 2005:
March 31,
2005
The three months period ended
June 30,
3005
Sept'
30, 2005
Dec' 31,
2005
The year
ended The three months period ended
Dec' 31,
2005
March 31,
2005
(in thousands, except per share data)
June 30,
2005
Sept' 30,
2005
Amendments As amended
Dec' 31,
2005
The year
ended
Revenues:
Product sales $(3,824) $(4,304) $(3,922) $(5,179) $(17,229) $16,700 $23,878 $25,288 $25,826 $ 91,692
Services and projects 3,813 1,938 3,136 4,409 13,296 17,102 24,352 26,336 27,889 95,679
Total revenues (11) (2,396) (786) (770) (3,933) 33,802 48,230 51,624 53,715 187,371
Cost of revenues:
Cost of product sales - (2,532) (403) (528) (3,463) 5,765 8,310 8,450 8,996 31,521
Cost of services and
projects - - - 5,298 9,469 9,549 10,149 34,465
Total cost of revenues - (2,532) (403) (528) (3,463) 11,063 17,779 17,999 19,145 65,986
Gross profit (11) 166 (383) (242) (470) 22,739 30,451 33,625 34,570 121,385
Operating expenses:
Research and development
expenses-net - - 8,437 11,973 12,188 12,085 44,683
Selling and marketing
expenses - - 6,770 8,995 9,191 8,426 33,382
General and
administrative expenses . - - (67) 334 267 4,378 6,371 6,372 6,010 23,131
Other general income
(expenses) - net - - 83 83 - - (6) 6 -
Total operating expenses - - 16 334 350 19,585 27,339 27,745 26,527 101,196
Income from operations (11) 166 (399) (576) (820) 3,154 3,112 5,880 8,043 20,189
Financial income
(expenses) - net - - 174 (161) 63 126 202
Gain arising from issuance
of shares by a
subsidiary and an
associated company - - 83 83 - - 83 83
Income before taxes on
income (11) 166 (316) (576) (737) 3,328 2,951 6,026 8,169 20,474
Taxes on income (2) 44 (81) 167 128 993 514 1,772 2,633 5,912
Income after taxes on
income (9) 122 (235) (743) (865) 2,335 2,437 4,254 5,536 14,562
Share in losses of an
associated company - - (40) (43) (20) (27) (130)
Minority interests in
losses of subsidiaries - - 72 134 (44) 27 189
Net income $ (9) $ 122 $ (235) $ (743) $ (865) $ 2,367 $ 2,528 $ 4,190 $ 5,536 $ 14,621
Earnings per share:
Basic - $ 0.01 $ (0.01) $ (0.04) $ (0.04) $ 0.13 $ 0.14 $ 0.22 $ 0.29 $ 0.78
Diluted - $ 0.01 $ (0.01) $ (0.04) $ (0.04) $ 0.13 $ 0.13 $ 0.21 $ 0.28 $ 0.74
Dec' 31,
2005