Their spokesman said they would fight Israel from bases in the south, but he claimed his group had no intention of dissolving its military forces.
At least six other armed groups field soldiers to fight Israel.
Israel says many of those prisoners immediately returned to fighting Israel.
We fought Israel for 30 years, and this is where we draw our legitimacy from.
Iraq sent armies to fight Israel in 1948 and 1967.
For years the area has been controlled by Arab guerrilla groups fighting Israel and one another.
If anyone wants to help our cause, they should come here and help us fight Israel.
"No spirit for that now," he said, lying in a hospital room below old stickers celebrating men who had died fighting Israel.
When not fighting Israel, they may busy themselves cutting the wires to television satellite dishes.
He fought Israel in 1967, 1973 and 1982.