Hezbollah admitted it would not have captured the two Israeli soldiers last month had it known a war would follow.
The leader of the militia also said that talks were going on to return the two in exchange for Lebanese prisoners held by Israel.
The Israeli government refused to confirm this, although officials have said privately that a prisoner exchange was probably the only way forward.
Meanwhile, Israeli Prime Minister Ehud Olmert admitted to "failures" during the Jewish state's month-long offensive on Hezbollah in Lebanon.
"It is true that not everything worked as we wished. We were not ready. We did not always achieve the aims we hoped for. Not everything worked properly. There were problems and failures," he told a conference in the northern port of Haifa. Source.
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