Kadima, the party Ariel Sharon founded a few months before his devastating stroke, swept to victory in Israel's election.
The win has changed the country's political landscape after decades of domination by the Labour and Likud parties.
Acting PM Ehud Olmert prayed at the Western Wall before giving a speech laying out his vision for the next four years.
He said Israel must open a new chapter in its history and set out plans to establish final borders for the country.
Kadima must form a coalition. A likely partner is centre-left Labour led by Amir Peretz, which came second.
But it was a gloomy night for the former ruling right-wing Likud, which trailed badly behind the other leading parties.
Despite its significance, the election had been met with wide public apathy. Turnout was the lowest in Israel's history.
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