Gazit America announces that Equity One, Inc. has reported a joint venture
with Capital Shopping Centres Group PLC

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, May 25 /CNW/ - Gazit America Inc. ("Gazit America") (TSX: GAA) announced today that Equity One, Inc. ("Equity One") (NYSE:EQY), a major investment of the Company, has reported that it has entered into an agreement to acquire Capital and Counties USA Inc. through a joint venture with its parent company, Capital Shopping Centres Group PLC ("Capital Shopping Centres"). In the transaction, Capital Shopping Centres will receive 4.1 million shares of Equity One common stock and 10.9 million joint venture units. With the completion of this transaction, Gazit America will hold approximately 14.7% of voting rights in Equity One (approximately 13.2% of the common shares outstanding, assuming the JV units are fully converted). Equity One's press release can be found on the U.S. Securities and Exchange Commission website at www.sec.gov/edgar.shtml or on Equity One's website at www.equityone.net.

ABOUT GAZIT AMERICA (TSX: GAA)

Gazit America is focused on entrepreneurial real estate opportunities including the acquisition and development of income-producing properties, investments in public and private real estate entities, investments in joint ventures and other structured acquisitions and investments in commercial and residential mortgage-backed securities. Gazit America currently owns approximately 15.4% of Equity One, Inc. (approximately 13.2% assuming the JV units are fully converted), a company that trades on the New York Stock Exchange under the ticker EQY, and three properties comprised of six medical office buildings totalling approximately 164,000 square feet of rentable space located in Cambridge, London and Ottawa, Ontario.

For further information: regarding Gazit America: Gail Mifsud, C.E.O., Gazit America Inc., 109 Atlantic Avenue, Suite 303, Toronto, Ontario, Canada, M6K 1X4, Tel: [phone], Fax: [phone], [email protected], www.gazitamerica.com