UPDATED: KIDNAPPING: THREATS AND DEMANDS

Israel 'will ensure Hamas govt toppled' if soldier slain (Breitbart)
Israel will work to ensure the Hamas-led government falls if a soldier kidnapped by Palestinian militants is not released alive, a high-ranking security official said. "We will make sure that the Hamas government ceases to operate if the kidnapped soldier is not returned to us alive," the source told AFP on condition of anonymity. Yuval Diskin, the head of Israel's Shin Beth homeland security agency, made the threat in talks with Palestinian president Mahmud Abbas late Sunday, the source said.

Palestinian militants issue demands over hostage
GAZA (Reuters) - Palestinian militant groups that carried out an attack in Israel in which a soldier was abducted issued a series of demands on Monday but stopped short of confirming they were holding him.

Hamas's Izz el-Deen al-Qassam Brigades, the Popular Resistance Committees and the Islamic Army said Israel would receive no information about kidnapped soldier Gilad Shalit until Israel released from jail all Palestinian women prisoners and Palestinian children under the age of 18.

A spokesman for the Qassam Brigades said the statement did not mean Hamas's armed wing and the other two groups were holding Shalit.

Prisoner release ruled out (YNet)
Olmert categorically rejects Palestinian offer to provide info on abducted soldier Gilad Shalit in return for freeing all female security prisoners. Israel will not show restraint much longer - Gaza operation imminent, PM says