  We continue our investigation of the Baxter-Bazhanov-Stroganov or
\tau^{(2)}-model using the method of separation of variables
[nlin/0603028,arXiv:0708.4342]. In this paper we derive for the first time the
factorized formula for form-factors of the Ising model on a finite lattice
conjectured previously by A.Bugrij and O.Lisovyy in
[arXiv:0708.3625,arXiv:0708.3643]. We also find the matrix elements of the spin
operator for the finite quantum Ising chain in a transverse field.
