RETALIX LTD.

D. Trend Information
Trends we identify within the retail industry that could influence demand are increasing focus on areas such as customer loyalty, purchasing and
inventory optimization, synchronization of data and use of shared databases, operation of multi-format retail operations and the increasing tendency of
large retailers to grow and operate internationally.
Competition in the market for software solutions supporting the operations of retailers and manufacturers is also increasing, which is resulting in
significant pressure on prices and subsequent lower gross margins. During the last two years there have also been some significant acquisition transactions
within the industry in which large corporations which have not been directly involved in the industry have acquired competitors of ours.
E. Off Balance Sheet Arrangements
None.
F. Tabular Disclosure of Contractual Obligations
The following table presents further information relating to our liquidity as of December 31, 2005:
Contractual Obligations (U.S. $ in millions)* Total
57
Less
than 1
year
2-3
years 3-5 years
More than 5
years
Long-Term Debt Obligations (including current maturities) $ 1.3 $ 0.2 $ 0.4 $ 0.5 $ 0.2
Operating Lease Obligations (with regard to offices and facilities and vehicles) 15.0 5.8 7.2 1.4 0.6
Severance pay 3.9 0.1 0.1 0.3 3.4
Total 20.2 6.1 7.7 2.2 4.2
* See also the notes to our audited consolidated financial statements for the year ended December 31, 2005 included elsewhere in this annual report,
and in particular, Note 8 thereto.