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Emblaze Ltd (LSE:BLZ) ("Emblaze" or "the Company") Company Update Publication of financial statements Tel Aviv, Israel, 28 March, 2014 Publication of financial statements Following recommendation of the Company's Audit Committee which also serves asa Financial Balance Committee for the purposes of the Israeli laws, theCompany's board of directors yesterday approved the consolidated financialstatements of the Company for the year ended 31 December 2013 (the "FinancialStatements"). The Financial Statements have been prepared in accordance with theInternational Financial Reporting Standards ("IFRS") as adopted by theEuropean Union. The consolidated financial statements of the Company and itssubsidiaries for the year ended 31 December 2013, have been audited by KostForer Gabbay & Kasierer, a member of Ernst & Young Global. These Financial Statements do not constitute an annual financial report forthe purposes of the Company's compliance with DTR4.1.3 (a "Report"). TheCompany expects to publish its Report for the year ended 31 December 2013, asrequired by DTR4.1.3, by 30 April 2014. Highlights The following sections reflect the position of the Company as at 31 December2013 as well as several updates relating to the period from 1 January 2013until the date of this report. - Primary assets as at 31 December 2013: - a 95 per cent. interest in Emoze Ltd, a provider of mobile push messagingand push content solutions for handset manufacturers, mobile operators andenterprises; and - cash and cash equivalents; - Continued strong cash position with cash, short term deposits and financialassets of US$141 million (net from short-term loan), which include: - US$3 million in cash and short term bank deposits with an original maturityof three months or less from date of acquisition; and - US$156,660 million in short term bank deposits with an original maturity ofmore than three months from date of acquisition (including an amount ofUS$140,418 million (net from short-term loan) which was deposited in trust bythe Company for the purposes of the previously proposed acquisition of acontrolling stake in IDB Holding Corporation Ltd and were subsequently repaidto the Company following the abortion of said transaction). In order to allow for the implementation of future acquisition opportunities,the Company's main objective with respect to its cash portfolio was, andremains, the preservation of cash value and liquidity, by maintaining aconservative investment policy; - Revenues for the year ending 31 December 2013 totalled US$1.9 million (2012:US$2.1million) and loss from continued operations totalled US$(2.9) million(2012: gain of US$0.9 million); - In November 2013, the Company transferred its listing from the PremiumSegment to the Standard Segment of the Official List of the London StockExchange. - During 2013 the Company has purchased 841,782 of its own shares for anaggregate amount of approximately US$687,000, net of related expenses. Thetotal issued share capital of the Company as at 31 December 2013 was140,578,154 of which 109,990,252 ordinary shares are outstanding, and30,587,902 shares are held in treasury. - In March 2014, the Company announced that it signed an agreement to acquirefrom Zwi Williger ("ZW") and Joseph Williger ("JW" and, together with ZW, the"Sellers") a controlling stake in Willi-Food Investments Ltd ("WFI"), acompany listed on the Tel Aviv Stock Exchange, a company which in turn, ownsapproximately 58 per cent. of G Willi-Food International Ltd ("WFINT" andtogether with WFI, "Willifood"), a company listed on NASDAQ. The acquisitionof the controlling stake in Willi-Food Investments Ltd. is deemed a reversetakeover under the Listing Rules and trading in the Company's shares wasaccordingly suspended on 3 March 2014. About the Company The Company was incorporated in Israel on 19 January 1994. Emblaze completedthe initial public offering of its ordinary shares on the alternativeinvestment market of the London Stock Exchange in October 1996 and thereaftercompleted a listing on the Official List of the London Stock Exchange in 1998. For more information, visit www.emblaze.com. A copy of the Company's Financial Statements & Report for the year ended 31December 2013 will be submitted to the Financial Services Authority followingpublication of the Report. The full Financial Statements can be accessed via RIS and is available as fromtoday on the Company's website, www.emblaze.com. Jossef Schneorson Chief Executive Officer and Vice Chairman of the Companycommented: "we are committed to actively seek to utilise the Company'sresources in order to maximize value for its shareholders. We are hoping thatthe agreement signed for the acquisition of WFI will be a good and solidinvestment to Emblaze shareholders". Enquiries: Eyal Merdler, CFO: eyal.merdler@emblaze.com www.emblaze.com EMBLAZE LTD. AND ITS SUBSIDIARIES 31 December Note 2013 2012 2011 U.S. dollars in thousandsASSETSCURRENT ASSETS:Cash and cash equivalents 5 2,957 9,333 148,261Short-term deposits 6a 16,242 122,195 198Short-term deposits held in trust 6b 140,418 - -Financial assets at fair value through profit or loss - 13,360 -Available for sale financial assets 206 215 196Prepaid expenses and other receivables 7 552 1,967 1,279Total current assets 160,375 147,070 149,934NON-CURRENT ASSETS:Equipment, net 67 67 59Total assets 160,442 147,137 149,993 The accompanying notes are an integral part of the consolidated financialstatements. EMBLAZE LTD. AND ITS SUBSIDIARIES 31 December Note 2013 2012 2011 U.S. dollars in thousandsLIABILITIES AND EQUITYCURRENT LIABILITIES:Trade payables 699 268 325Deferred revenues and accrued expenses 8 1,990 4,341 7,372Short-term loan 6b 18,813 - -Total current liabilities 21,502 4,609 7,697NON-CURRENT LIABILITIES:Employee benefit liabilities, net 9 40 34 21EQUITY: 11Share capital 416 416 416Share premium 469,925 469,911 469,864Treasury shares (76,962) (76,275) (75,555)Available for sale reserve 123 132 98Accumulated deficit (254,189) (251,346) (252,282)Equity attributable to Company's equity holders 139,313 142,838 142,541Non- controlling interests (413) (344) (266)Total equity 138,900 142,494 142,275Total liabilities and equity 160,442 147,137 149,993 The accompanying notes are an integral part of the consolidated financialstatements. EMBLAZE LTD. AND ITS SUBSIDIARIES Year ended 31 December 2013 2012 2011 U.S. dollars in thousands (except Note earnings (loss) per share)Revenues 1,882 2,149 1,207Cost of sales 449 525 247Gross profit 1,433 1,624 960Operating expenses:Research and development 1,562 1,751 1,401Selling and marketing 134 800 599General and administrative 13a 7,095 2,620 2,433Total operating expenses 8,791 5,171 4,433 Operating loss (7,358) (3,547) (3,473)Financial income 13b 5,208 2,460 2,702Financial expense 13b (846) (58) (459)Other income 10b - 2,061 4,114Income (loss) from continuing operations (2,996) 916 2,884Income (loss) from discontinued operations, net 13c 181 (30) 1,289Net income (loss) (2,815) 886 4,173Other comprehensive income (loss) to be reclassified toprofit or loss in subsequent periods :Gain (loss) from available-for-sale financial assets (9) 34 (33)Other comprehensive income (loss) not to bereclassified to profit or loss in subsequent periods :Remeasurement loss from defined benefit plans (97) (32) (42)Total other comprehensive income (loss) (106) 2 (75) Total comprehensive income (loss) (2,921) 888 4,098Net income (loss) attributable to:Equity holders of the Company (2,746) 968 4,263Non- controlling interests (69) (82) (90)Net income (loss) (2,815) 886 4,173Total comprehensive income (loss) attributable to:Equity holders of the Company (2,852) 970 4,188Non- controlling interests (69) (82) (90)Total comprehensive loss (2,921) 888 4,098Basic and diluted net earnings per share attributable toCompany's equity holders (in U.S dollars): 15Income (loss) from continuing operations (0.03) 0.01 0.03Income from discontinued operations - - 0.01Net earnings (loss) per share (0.03) 0.01 0.04 The accompanying notes are an integral part of the consolidated financialstatements. EMBLAZE LTD. AND ITS SUBSIDIARIES Attributed to equity holders of the Company Available Non- Share Share Treasury for Accumulated controlling Total capital premium shares sale reserve deficit Total interests equity U.S. dollars in thousandsBalance as of 1 January 2013 416 469,911 (76,275) 132 (251,346) 142,838 (344) 142,494Net Loss - - - - (2,746) (2,746) (69) (2,815)Other comprehensive loss - - - (9) (97) (106) - (106)Total comprehensive loss - - - (9) (2,843) (2,852) (69) (2,921)Cost of share- based payment - 14 - - - 14 - 14Purchase of treasury stock - - (687) - - (687) - (687)Balance as of 31 December2013 416 469,925 (76,962) 123 (254,189) 139,313 (413) 138,900 Attributed to equity holders of the Company Available Non- Share Share Treasury for Accumulated controlling Total capital premium shares sale reserve deficit Total interests equity U.S. dollars in thousandsBalance as of 1January 2012 416 469,864 (75,555) 98 (252,282) 142,541 (266) 142,275Net income (loss) - - - - 968 968 (82) 886Other comprehensive income(loss) - - - 34 (32) 2 - 2Total comprehensive loss - - - 34 936 970 (82) 888Cost of share-based payment - 47 - - - 47 4 51Purchase of treasury stock - - (720) - - (720) - (720)Balance as of 31 December2012 416 496,911 (76,275) 132 (251,346) 142,838 (344) 142,494 The accompanying notes are an integral part of the consolidatedfinancial statements. EMBLAZE LTD. AND ITS SUBSIDIARIES Year ended 31 December 2013 2012 2011 U.S. dollars in thousandsCash flows from operating activities:Net income (loss) (2,815) 886 4,173Less - income (loss) from discontinued operations 181 (30) 1,289Income (loss) from continuing operations (2,996) 916 2,884Adjustments to reconcile income from continuing operationsto net cash provided by (used in) operating activities :Depreciation 31 30 33Cost of share-based payment 14 51 25Change in financial assets at fair value through profit or loss 432 (70) -Interest income (1,863) (2,040) (2,501)Interest expense on short term loan 86 - -Exchange rate differences on deposit held in trust and short (3,438)term loan - - (4,738) (2,029) (2,443)Changes in asset and liability items:Decrease in receivables and prepaid expenses 494 35 (81)Decrease in trade payables, other payables and accrued (1,468)expenses (3,103) 2,394 (974) (3,068) 2,313Cash received during the year:Interest received 2,450 1,426 2,434Net cash used in operating activities from continuing (6,258) (2,755) 5,188operationsNet cash used in operating activities from discontinued (189) 5 (1,274)operationsNet cash provided by (used in) operating activities (6,447) (2,750) 3,914 The accompanying notes are an integral part of the consolidated financialstatements. EMBLAZE LTD. AND ITS SUBSIDIARIES Year ended 31 December 2013 2012 2011 U.S. dollars in thousandsCash flows from investing activities:Purchase of property and equipment (31) (38) (48)Maturing of (investment in) short-term deposits, net 105,953 (122,000) 222Investment in deposit held in trust (118,253) - -Purchase of financial assets at fair value through profit orloss (13,352) (15,133) -Proceeds from sale of financial assets at fair value throughprofit or loss and available for sale financial assets 26,441 1,713 -Net cash provided by (used in) investing activities fromcontinuing operations 758 (135,458) 174Cash flows from financing activities:Repurchase of Company shares (687) (720) -Net cash used in financing activities from continuingoperations (687) (720) -Net decrease in cash and cash equivalents (6,376) (138,928) 4,088Cash and cash equivalents at the beginning of the year 9,333 148,261 144,173Cash and cash equivalents at the end of the year 2,957 9,333 148,261(a) Non-cash transactions:Deposit of deposit held in trust against short-term loan 18,393 - - The accompanying notes are an integral part of the consolidated financialstatements.