The Israeli blitz hit Gaza during the Muslim holiday of Eid al-Fitr, which marks the end of the holy fast month.

Hours before the incursion, Israeli Prime Minister Ariel Sharon said members of the terror network al-Qaeda had infiltrated the Palestinian-controlled Gaza strip and Israel's northern neighbor Lebanon.

Ahmed Rabah, chief of Al Aqsa Hospital in central Gaza Strip, said nine people from two families were killed, and at least 15 others injured, most of whom were in critical condition. Palestinian sources later confirmed another death and more injuries.

Rabah said the victims were hit by fragments of tank shells landing at several houses in the eastern part of the refugee camp. It was difficult to identify most of the dead.

A Palestinian public security spokesman said at least 40 tanks and armored personnel carries, supported by Apache attack helicopters, entered the refugee camp from the Jewish settlement of Nitzarim south of Gaza City.

Residents of the camp said the Israeli missiles destroyed two houses in the refugee camp during the operation.

The houses belonged to two militants who had been killed in carrying out attacks against Israeli targets.

The latest Israeli operation lasted three hours until local time 1:00 a.m. (GMT 2300 Thursday), said Palestinians who witnessed the tanks and armored vehicles pulling out of the camp.

Israeli military sources confirmed the troops were conducting a targeted operation, adding that four of the 10 slain Palestinians were members of the Palestinian Islamic Resistance Movement (Hamas).

Israel Radio also reported that an Israeli soldier was lightly injured in the fire exchange with Palestinian militants.

The Israeli military did not say whether their operation had anything to do with Sharon's claim that the Al-Qaeda network reached Gaza.

Both the Palestinian National Authority and Lebanon immediately denied Sharon's allegation.

The recent months saw an escalation of Israeli incursions into the tiny, but densely-populated Gaza Strip, where Hamas has its stronghold.

Sharon has vowed to uproot Hamas which persists with attacking Israelis, including civilians, in retaliation for the targeted killing of Palestinian militants.

(Xinhua News Agency December 7, 2002)