The Israel Air Force last night bombed the house of Hamas parliamentarian Halil al-Haya in Gaza. He was slightly injured in the attack, but eight others - including seven members of his family - were killed, and 13 people were wounded.

In total, 12 Palestinians were killed in Gaza yesterday by the Israel Defense Forces, and more than 15 rockets were launched from Gaza at Sderot and the western Negev.

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The security cabinet yesterday authorized the IDF to intensify air attacks on the Gaza Strip and targeted assassinations of senior Hamas activists. Government sources in Jerusalem said the cabinet decision called for assassinations of leaders of the military wing of Hamas, not the political wing. The sources said al-Haya's name had not been mentioned in the meeting.

Sources in the IDF say they believe that the steps taken so far will not deter Hamas and that the organization will continue to launch rockets at Sderot.

The more than 15 rockets fired yesterday from the Gaza Strip at Sderot and its surroundings caused major property damage, but no injuries. One hit the home of a Sderot family that was out of town. Another rocket landed near a school in the city. In the evening, a Qassam hit a restaurant at Kibbutz Nir-Am, causing extensive damage.

Meanwhile, a mass exodus was underway from the city. Thousands of residents have already left, following nearly a week of ongoing rocket fire.

Defense Minister Amir Peretz yesterday declared a state of emergency in Sderot, the Gaza envelope communities and four additional moshavim within Qassasm range. The police and the Home Front are preparing for the possibility that Hamas may launch rockets with a somewhat longer range - up to 15 kilometers - capable of striking more communities, including Ashkelon.

The IDF has reinforced security at Gaza-region kibbutzim and moshavim following alerts regarding attempts by Hamas and other terror organizations to infiltrate Israel via tunnels. The IDF is concerned these groups may try to kidnap or kill soldiers or civilians.

Meanwhile, in Gaza, Palestinians called the IAF bombing an attempt on the life of al-Haya, the head of Hamas' political wing in Gaza. The IDF said it was an attempt to strike a Hamas cell.

Several family members and Hamas activists had apparently gathered in the yard of the home when the IAF struck, a little after 9 A.M. Al-Haya, who was lightly injured in attack, had just finished discussing a cease-fire with a Fatah leader at the Egyptian Embassy in the Gaza Strip.

Seven of the dead are members of the al-Haya family: Nimr al-Haya, 60; Abd al-Hamid al-Haya, 35; Bakhr al-Haya, 26; Ibrahim al-Haya, 23; Ala al-Haya, 22; Jihad al-Haya, 17; and Mohammed al-Haya, 16. The eighth man is Samakj Farauna, 27, a Hamas activist.

Al-Haya, a former spokesman for the Hamas parliamentary faction in Gaza, is responsible for negotiations with Fatah and Hamas' future membership in the Palestine Liberation Organization (PLO).

Hamas has vowed to respond to what it called the attempt on al-Haya's life.

Between Saturday and Sunday morning, the IAF struck six targets in the Gaza Strip, including rocket-launching cells, vehicles transporting rockets and cells, and a number of Qassam-manufacturing workshops.

Three attacks targeted Hamas activists transporting explosives and rockets in Jabalya and Gaza City's Zeitun neighborhood. These attacks killed four people, including a 16-year-old Jabalya resident, Palestinian sources said.

Three more attacks targeted Qassam workshops in Beit Lahiya, Gaza City and the Nuseirat refugee camp.