Israel is on high alert after a rocket fired from Egypt exploded in the resort town of Eilat.
It is the first rocket attack on Israel from Egypt since the collapse of the regime of Hosni Mubarak more than a year ago.
District police chief Ron Gertner the rocket was fired from the Sinai peninsula.
He told Israeli radio it struck a construction site close to a residential area shortly after midnight on Thursday.
Israel has put its armed forces on their highest state of alert for the Passover holidays .