Israeli PM rejects Palestinian militants' ultimatum

JERUSALEM, July 3 (Reuters) Israeli Prime Minister Ehud Olmert rejected today an ultimatum by Palestinian militants, who abducted an Israeli soldier, for Israel to release Palestinian prisoners.

''The government of Israel will not yield to the extortion of the Palestinian Authority and the Hamas government, which are led by murderous terrorist organisations,'' Olmert's office said in a statement after militants set a deadline for tomorrow. ''We will not conduct any negotiations on a prisoner release.'' REUTERS SHR ND1728