A bomb killed two conscripts and injured 16 others in al-Arish in northern Sinai on Saturday morning, Egypt's Interior Ministry said.
The explosive device was planted inside a car parked on the side of the road by "unknown" individuals, the ministry said in a statement.
Aswat Masriya could not independently verify the content of this statement. Anti-terrorism legislation imposes heavy fines on news organizations that contradict official statements.
The injured have been hospitalised, the ministry added.
Saturday marks the third day of Eid, a religious holiday observed by Muslims worldwide.
Militancy inside Egypt has seen a significant rise since the military ouster of Islamist President Mohamed Mursi in July 2013, following mass protests against his rule.
North Sinai is at the epicentre of the insurgency and most attacks take place there, targeting security forces.
