The attack, which occurred before midnight, caused the cancellation of last night's Independence Day celebrations in the town. Mayor Gabi Ne’eman said the rocket, a 107-millimeter shell with a range of 5.5 miles, fell in the town’s industrial zone, adjacent to men putting on a fireworks display.



A fire broke out, causing severe damage to a local bakery. Police and firefighters arrived on the scene.



"In my estimation, the attack was carried out in response to the celebrations in Israel," Ne’eman said.



Hizbullah has not commented or claimed responsibility for the attack. The IDF assumes that a Palestinian terror organization with operatives in Lebanese territory carried out the attack.



An army spokesman said that Israel holds Lebanon responsible. “The Lebanese government is responsible for all incidents which take place in Lebanese territory," he said, "including these attacks, which are conducted by terror organizations."



"The army will not allow terror activity and provocative actions aimed at civilians in northern Israel," the spokesman added. "It will prepare to prevent the recurrence of similar terror attacks and will respond if needed - but according to its own schedule, not that of the terrorists."



Israel intensified security near the northern border after Hizbullah successfully flew a pilotless drone over Israeli territory last month. Yesterday’s attack came two days after the the IDF accidentally fired a tank shell into southern Lebanon during a training exercise. No injuries were reported. It is unclear whether the katyusha fired at Shlomi is related to that incident.



The last rocket attack into Israeli territory from Lebanon occurred last November, prompting threats of Israeli retaliation.



Shlomi was the scene of a Hizbullah shelling attack in August of 2003, in which 16-year-old Haviv Dadon was killed and several people were wounded.