Prime Minister Ehud Olmert said Thursday that Israel would not free the number of Palestinian militants demanded by the captors of Israel Defense Forces soldier Gilad Shalit, who was abducted a year ago.

Olmert was speaking in televised remarks to an economic conference at the Mediterranean coastal resort of Caesarea, two days after the Hamas-linked group holding Shalit released a recorded message from their captive, the first since he was abducted by Palestinian militants near the Gaza border on June 25 of last year.

The militants demand that Israel trade hundreds of Palestinian prisoners for Shalit's release. Israel has agreed to a swap in principle, but balked at the number and type of prisoners to be freed.

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The fact that for the release of Gilad Shalit the terrorists demand that we free hundreds of arch-murderers says everything about the differences between us in our regard for human life, Olmert said. That does not mean we shall give in extortion.

A Hamas official who has been in touch with Shalit's captors said Tuesday that they wanted the release of all Palestinian women and minors held by Israel and 1,000 other Arab prisoners, among them militant leaders.

Olmert also also said at the conference that he does not plan to fully safeguard all the communities around the Gaza Strip, Army Radio reported, saying that "a state cannot completely safeguard itself, because there will be no end."

He added that the safeguarding would be costly and would take away from other imperative security needs. The prime minister asked that the media not encourage, even silently, the residents demands that no normal government could ever accept.

"Life in Israel has its dangers and whoever chooses to live in the Jewish state must accept these dangers," he said.