Delek Group Subsidiaries Sign Natural Gas Supply Agreement with Chemicals

Tel Aviv, March 25, 2008. Delek Group (DLEKG.TA) reported that today, March 25, 2008, the Yam Tethys Partners signed an agreement with a subsidiary under the full ownership of Israel Chemicals Ltd. (“ICL”) under ICL guarantee (“ICL Group”), for the supply of natural gas to the manufacturing sites of ICL Group. The partners of Yam Tethys include Limited Partnership, Avner Oil Exploration Limited Partnership, Delek Investments and Properties Ltd. and Nobel Energy Mediterranean Ltd.

The quantity of gas under which ICL Group guarantees to buy from the partners of Yam Tethys under the agreement is a total of 2 billion cubic meters (BCM) and is subject to adjustments under the terms of the agreement (“the Gas Quantity contract”).

The supply of gas will start with the completion of the pipeline to bring gas from the South is complete, which according to the information supplied to ICL from the gas transmission company, Israel Natural Gas Line Ltd., is expected at the end of 2008, and when the ICL Group converts its facilities to use natural gas, which is planned to start gradually with its facilities in Sodom facilities (which will consume most of the gas of the ICL Group), from the end of 2008. The supply agreement will expire at the earlier of:

(1) Five years from the date of completion of the running-in period, but no later than September 2015 (subject to an extension as described below); (2) Purchase of the entire Contract Gas Quantity.

The period set out in item 1 will be automatically extended by one additional year if by the end date, the entire Contract Gas Quantity has not been consumed. In addition, Yam Tethys Partners have an option to extend the period by an additional two years, until the entire Contract Gas Quantity has been consumed, all as set out in the Agreement.

According to the Agreement, the price of the natural gas will be based on a formula applied to the prevailing fuel oil market prices, with a discount, subject to both “floor” and “ceiling” prices. The ICL Group has committed to purchase yearly minimum quantities on a “take or pay” basis, at quantities and conditions set out in the Agreement.

The total value of the Agreement is estimated at $260 to $330 million. The actual cost will be influenced by a variety of factors, mainly the fuel oil price and the quantity and rate of consumption of the gas.

The Agreement is conditional upon the receipt of the necessary permits to erect connection facilities to the gas line and the signing of an ongoing gas transportation agreement with Israel Natural Gas Line Ltd.

The respective ownership by the Delek Group subsidiaries of the Yam Tethys Partnership is as follows:

Delek Drilling Limited Partnership: 25.5% Avner Oil Exploration Limited Partnership: 23% Delek Investments and Properties Ltd.: 4.441% THIS IS A TRANSLATION FROM THE HEBREW ORIGINAL THAT WAS SUBMITTED TO THE STOCK EXCHANGE

About The Delek Group The Delek Group is one of the leading and most prominent and dynamic investment groups in Israel.

The Delek Group is diversified into the following three major subsidiaries: • Delek Petroleum, with its two subsidiaries: Delek Israel, a gasoline and lubricants distributor in Israel, and Delek USA (NYSE:DK), which operates gas stations and convenience stores and an oil refinery in Southern United States. • Delek Investments and Properties, a holding company with subsidiaries in the energy, infrastructure, automotive, finance and media sectors. • Delek Real Estate, through its subsidiaries Dankner and Delek Belron Investments, owns and manages prime global real-estate investments.

Contact Dalia Black Kenny Green Head of Investor Relations International Investor Relations Delek Group GK Investor Relations Tel: +972 9 863 8444 Tel: (US) 1 866 704 6710 / (UK) 0871 474 1218 Email: [email protected] E-mail: [email protected]