I want to buy some two-way unlicensed radios (walkie talkies) for
family in Israel, similar to the Motorola Talkabout radios with a 2
mile range. In the US they use a frequency called FRS. In Europe there
is something called PMR446 which is on a different frequency, so you
have to buy different radios for use in Europe.

My question is ... what kind of two-way family radio is legal for use
in Israel without a license?

PMR 446 radio equipment can be used in CEPT member countries that have
implemented the ERC Decisions. According to the European
Radiocommunications Office website at www.ero.dk, Israel is NOT listed
as having adopted PMR446. The page is
http://www.ero.dk/818b7698-2d99-431f-8d20-f41ca3b8aa56.W5Doc?mid=766F2AA3-3EDB-4C90-8311-9F9B0A7FE7AE&frames=0

I have emailed the Israeli Ministry of Communication and will post
their reply if I get one.

Owain

I haven't had a personal response to the email yet; if I do I will
post it here (if the question hasn't expired).

The auto-responder gave the following contact information:

Telecommunications services, including Bezeq services, International
services and cellular telephony:Mr. Meir Ben Basat, tel. 03-5198231
E-mail: benbassatm@moc.gov.il

General Inquiries: Ms. Anat Friedman, tel. 02-6706323
E-mail: friedmana@moc.gov.il   

Owain