Three people have been wounded in a grenade attack by suspected Palestinian militants in the southern Israeli city of Beersheba, Israeli police said.
One of the militants was wrestled to the ground by a local shop owner after he threw a grenade or explosive device at market stalls outside a bank branch in the old quarter of Beersheba.
Deputy Police Chief Shimon Ben-Arush called the blast a "terrorist" attack and said police were pursuing a second man seen fleeing the scene.
"It appears that one or two terrorists threw a bomb or grenade close to the entrance of the bank. One of the terrorists was caught, and the other is being pursued. He fled on foot," he told Israel Radio.
Ambulance workers said the three people wounded were only slightly hurt.
There was no immediate claim of responsibility for the attack.
Palestinian militants have carried out a wave of bombings and shooting attacks against Israelis since a Palestinian uprising against Israeli occupation began in September 2000 after negotiations became deadlocked.
Israel forces have recently waged a fierce offensive in the West Bank and have threatened further military action following a suicide bombing that killed 15 people near Tel Aviv on Tuesday.