Jerusalem - Negotiations on a last-minute prisoner exchange between Hamas and the outgoing Israeli government have broken down, Israel announced overnight.
Outgoing Israeli premier Ehud Olmert, who has held intense, Egyptian-mediated indirect negotiations with Hamas in a bid to reach a deal during his final days in office, issued a statement, charging Hamas had "hardened its position," "reneged" on understandings that had already been formulated over the past year and "raised extreme demands."