British Broadcasting Corp. (BBC) reporter Alan Johnston was released by Arab terrorists, four months after he was kidnapped in Gaza. Johnston was freed after a prolonged gunfight between Hamas terrorists and his captors, members of the Army of Islam. 

--Prime Minister Ehud Olmert nominated Ronnie Bar-on as Finance Minister, with Meir Sheetrit to take his place as Interior Minister. Zev Boim is to replace Sheetrit as Housing Minister.

--Former Justice Minister Chaim Ramon, convicted for sexual indecency towards a woman soldier who worked in his office, has accepted urgent requests by Kadima party officials that he accept the offer to become Vice Prime Minister, replacing President-elect Shimon Peres.