Military

DATE=1/28/2003

TYPE=CORRESPONDENT REPORT

TITLE= ISRAEL ELECTIONS (L-UPDATE)

NUMBER=2-298924

BYLINE= SONJA PACE

DATELINE=JERUSALEM

CONTENT=

/// COMPANION TO SECOND SHORT UPDATE -- UPDATES PREVIOUS LONG CR WITH POLLS CLOSING AND EXIT POLL RESULTS ANNOUNCED ///

INTRO: Israeli television networks say incumbent Prime Minister Ariel Sharon and his right-wing Likud Party have scored a substantial victory, and will lead the country's next coalition government. The network projections, based on voter surveys, were released as soon as the polls closed Tuesday evening. V-O-A's Sonja Pace reports from Jerusalem.

TEXT: Within seconds after the polls closed at 10 in the evening local time, exit poll results were announced on Israeli television.

///ACT: ANNCRS FROM TV IN HEBREW ESTAB AND UNDER ///

Israel's Channel Two made the announcement sound dramatic, but the outcome was no surprise. Opinion polls have been predicting for weeks that Mr. Sharon would win. Initial exit polls indicate that his Likud Party picked up between 33 and 36 seats in the 120-member parliament.

The big loser of the day, also as predicted, was the Labor Party which is estimated to have won only 18 or 19 seats, the poorest showing in its history.

The vehemently secular, anti-religious party, Shinui came in third with an estimated 14-17 seats its best performance ever.

The ultra-orthodox religious party Shas lost ground, projected to receive between nine and 13 seats, down from the 17 seats it held in the last parliament.

Official results are expected to be issued later in the night.

Analysts have been predicting this kind of outcome. They say two years of Israeli-Palestinian violence has left many Israelis disillusioned about prospects for peace and has increased support for Mr. Sharon's tough policies against the Palestinians.

Analysts have also said that Israelis were not likely to vote against the experienced incumbent in favor of the Labor Party's relatively inexperienced Amram Mitzna, the mayor of the city of Haifa, who wants immediate resumption of peace talks with the Palestinians.

Mr. Sharon is expected to have weeks of complex negotiations ahead to form a ruling coalition of several parties with very diverse views.

NEB/SP/AWP/KBK