An Israel Air Force helicopter fired Friday two missiles at a three story building in Gaza city; two people were wounded.
Army source said that the target of the attack was metal workshop.
The attack came few hours after few Qassam rockets landed in the Israeli southern Negev town of Sderot.
Palestinian Authority source reported that one missile hit the three-story building, sending a huge fireball high over the city, while the second failed to explode.
Army source accused that the metal workshop, occupying the first floor of the Zeitoun neighborhood building, was used to produce explosives.
Palestinian official source denied the accusation, confirming that the metal workshop was producing car batteries.
The workshop attacked belonged to the family of Reem Raiyshi, 22, who killed herself in a January attack at the Erez Crossing, the checkpoint between Israel and the Gaza Strip, killing 3 soldiers and a security guard.
Earlier on Friday, Israeli Defense Minister Shaul Mofaz met with top security and army officials and decided to provide army a "free hand" in order to stop Qassam firing from the Gaza strip.
Army admitted Friday that a 35 days long military operation in Beit Hanoun area failed to stop Qassam firing at Israeli settlements and southern towns.
Palestinian resistance groups vowed to continue with homemade rockets attacks as long as army kept operating inside the Palestinian territories, especially Beit Hanoun area.
Also on Friday, Palestinian witnesses and medics said that army opened fire on the funeral in the southern Gaza Strip, killing a 12-year-old boy and wounding seven other people.
An army source said soldiers guarding a nearby settlement fired toward dozens of Palestinians who entered a restricted area, after ignoring warning shots to stop.
Palestinian witnesses said soldiers opened fire near the cemetery in the town of Khan Yunis.
Witnesses said that over 20,000 people marched in the funeral procession, confirming that soldiers opened fire as the two men were being buried.
Medical sources reported that a 12-years-old boy died of a gunshot to the head and three other children were among the wounded, including a 13-year-old boy in critical condition.
In a separate incident, witnesses said soldiers shot and critically wounded a 14-year-old girl in Rafah.