Israeli troops massed along the Gaza Strip border on Monday, ready to launch a major ground offensive if a kidnapped Israeli soldier is not returned immediately.
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Palestinian gunmen tunneled half a mile under the Gaza border fence, came up 975 feet into Israel and attacked the outpost and a tank from behind, the army said.
Two Palestinians were killed in the ensuing battle. The remaining terrorists blew a hole in the fence and retreated back into Gaza, taking Israeli soldier Corporal Gilad Shalit with them.
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Hundreds of Israeli websites hacked in retaliation for Gaza offensive.