TEL AVIV, Israel, August 29 /PRNewswire/ --     Delek Group Ltd. (TASE: DLEKG) (hereinafter: "Delek Group" or
"The Group") today reported its results for the three and six-month periods
ending June 30, 2007. The full financial statements are available on Delek
Group's website at: http://www.delek-group.com

Main Six-Month Highlights (compared with same period in 2006)

- Net income, excluding capital gains resulting from IPO's,
increased 22% reaching NIS 705m

- Net income, including capital gains, totalled NIS 758
million

- Declared NIS 200m dividend for second quarter 2007;
distributed dividends in 2007 reached NIS 430m

Net income for the first six months of 2007, excluding capital
gains resulting from the Initial Public Offerings ("IPO") of several
subsidiaries, increased 22% reaching NIS 705 million, compared with NIS 577
million in the same period last year. Net income for the first six months
included the Group's share in the capital gain recorded following Delek
Global Real Estate's ("DGRE") IPO on the London AIM Exchange in April 2007,
amounting to NIS 53 million. Net income for the first six months last year
included a substantial NIS 443 million capital gain from the IPO of Delek
USA. Net income for the first six months, including the said capital gains,
totalled NIS 758 million, compared with NIS 1,020 million in the same period
last year.

Net income for the second quarter of 2007, excluding capital
gains resulting from the IPO of subsidiaries, totalled NIS 380 million, a 42%
increase compared with NIS 267 million last year. Net income for the second
quarter totalled NIS 433 million, compared with NIS 710 million in the second
quarter last year.

Mr. Asaf Bartfeld, CEO of Delek Group commented on the
results, "This quarter we continued to show healthy financial and business
performance, with our major holdings steadily increasing their contribution
to our net income in the second quarter. Our holdings in the fuel sectors,
local and US, as well as the financial services area, served as main growth
drivers this quarter. This quarter we also continued to invest substantial
resources in identifying and making new investments, internationally and
locally, further enhancing our presence in our core sectors, while leveraging
favorable market conditions for capital raising activities, all with a view
to further driving growth. During the quarter, and subsequent to it, the
Group completed the acquisition of Chevron's 869 fuel stations in the Benelux
region, acquired approximately 28% of US-based Lion Oil with a view to
reaching 35% in the near future, and acquired the Israeli fuel storage and
distribution facility, Pi-Glilot."

Mr. Alan Gelman, CFO and Deputy CEO of Delek Group added, "We
continue to identify opportunities in the local capital market and listed
Delek Israel on the Tel Aviv Stock Exchange, raising NIS 918 million (net of
IPO expenses) and, at the Corporate level, raised an additional NIS 500
million in debentures, bringing total capital raised during the first six
months at the corporate level to NIS 1.4 billion. Our strong cash flow and
financial performance culminated in the declaration of a NIS 200 million
dividend for the quarter, bringing the total dividend distributed for the
first six months of 2007, to NIS 430 million."

Mr. Bartfeld concluded, "Looking ahead, we continue to
actively seek to leverage our core expertise and knowledge in the energy,
real estate and financial service sectors, while expanding our global
presence, with a view to driving performance and growth, enhancing
shareholder value."

Main Events Subsequent to the end of the Second Quarter 2007

- Delek Israel completed the acquisition of the fuel
distribution and storage operations of the Israeli Pi Glilot Oil Terminals
and Pipes Ltd.

- Delek Global Real Estate signed an agreement to acquire the
largest retail real estate portfolio ever sold in Switzerland from Jelmoli
Holding AG.

- Delek Benelux acquired the marketing activities of Chevron
Global Energy Inc. in Benelux, including 869 fuelling stations, mostly under
the Texaco brand

- Delek US acquired approximately 28% and signed to acquire an
additional 6%, of Lion Oil Co. a private company operating a 75,000 bpd
refinery in El Dorado, Arkansas,

- Delek Israel completed an IPO on the Tel Aviv Stock Exchange
raising a net NIS 940 million (shares and debentures).

Main Business Highlights for the Second Quarter and First Six
Months 2007

Contribution of Principal Operations to Net Profit(1) (NIS millions)

1-3/07 4-6/07 1-6/07  4-6/06 1-6/06  2006
    US Fuel Sector Operations        57    212    269     156    221   337
    Israeli Fuel Sector               1     34     35       4      8    25
    Operations(1)
    Oil and Gas Exploration          26      8     34      16     27   108
    Oil Exploration Expenses(1)     (43)   (15)   (58)      -      -     -
    Automotive Operations            56     71    127      42     72   151
    Real Estate Operations           20     62     82     101    129   235
    Biochemical Operations            5      2      7       7     14    21
    Insurance and Finance            90     83    173       1     26   109
    Operations(1)
    Telecom Operations                2      -      2     (10)   (29)  (43)
    Capital Gains & Others(1)       111   (24)     87     393    552   570
    Net Income                      325    433    758     710  1,020 1,513



(1) This table has been extracted from Delek Group's six months
2007 Directors Report. Please review the full report available on the Group's
website www.delek-group.com to view the notes for each of the items above.

US Fuel Sector Operations: The Group holds 77% of Delek USA.
Net income for the first six months 2007 totalled NIS 347 million, a 30%
increase compared with NIS 266 million in the same period last year. Net
income for the second quarter of 2007 totalled NIS 273 million, a 36%
increase compared with NIS 201 million in the same period last year. This
increase follows higher sales, increased fuel prices and stronger operating
margins.

US Fuel Sector Operations contributed NIS 269 million to the
Group's net profit in the first six months of 2007, NIS 212 million of which
in the second quarter, a substantial increase compared with NIS 221 million
in the first six months last year, NIS 156 million of which in the second
quarter last year. In April 2007, wholly-owned Mapco Express, Inc. completed
the acquisition of 107 gasoline stations with convenience stores, from
Calfee, for approximately US$62 million (not including inventory).

Israeli Fuel Sector Operations: The Group held (prior to the
IPO in August) 100% of Delek - the Israel Fuel Company Ltd. Net income for
the first six months increased 40% reaching NIS 42 million, compared with NIS
30 million last year. Net income for the quarter increased 66% reaching NIS
40 million, compared with NIS 24 million in the second quarter last year. The
higher net income follows improved gross margin, lower operating expenses,
and overall operating efficiencies. The net income in both periods in 2007
included accounting charges resulting from share based compensation allocated
to the CEO during the periods.

The Israeli Fuel Sector Operations contributed NIS 35 million
to the Group's net income in the first six months, NIS 34 million of which in
the second quarter 2007, compared with NIS 8 million net income contribution
in the first six months last year, NIS 4 million of which in the second
quarter last year.

In May 2007, Delek Benelux B.V., an indirectly owned
subsidiary of Delek Petroleum, signed an agreement to acquire the marketing
activities of Chevron Global Energy Inc.'s subsidiary in the Benelux
countries for a total of EUR342 million, before working capital adjustments.
These include 869 fuelling stations, mostly under the Texaco brand. The
transaction was completed in August, 2007. The acquisition was financed
through a combination of foreign bank financing (63%), and equity provided by
the parent company (37%). The loan from the foreign banking comprises of two
main parts, approximately EUR240 million loan to finance the acquisition,
approximately EUR110 million for the financing of ongoing activities.

Oil and Gas Exploration Operations: The Oil and Gas
Exploration, and Gas Production, sector contributed a NIS 26 million net loss
in the first six months of 2007, primarily following the NIS 58 million
expenses recorded following the abandoning of the two drills in Guinea
Bissau. Excluding these expenses, net income for the six months totalled NIS
34 million, compared with NIS 27 million in the first six months last year.

Automotive Operations: The Group holds 55.4% of Delek
Automotive Systems Ltd. Delek Automotive Systems' net income for the first
six months of 2007 totalled NIS 221 million, a 61% increase compared with NIS
137 million in the first six months last year. Net income for the second
quarter increased 73% reaching NIS 121 million, compared to NIS 70 million in
the second quarter last year.

The Automotive Sector contributed NIS 127 million to the
Group's net income in the first six months of 2007, NIS 71 million of which
in the second quarter, compared with NIS 72 million contribution in the first
six months of 2006, NIS 42 million of which in the second quarter 2006. The
higher net income primarily follows the increase in number of vehicles sold.

Real Estate Operations: The Group holds 67.9% of Delek Real
Estate. Delek Real Estate's net income for the first six months of 2007
totaled NIS 125 million, NIS 91 million of which in the second quarter 2007,
compared with NIS 181 million in the first six months of 2006, NIS 142
million of which in the second quarter 2006. In April 2007, DGRE successfully
raised GBP 111 million following its IPO on the London AIM Stock Exchange.
Delek Real Estate today holds approximately 81.5% of DGRE, and recorded a
capital gain of NIS 77 million in the second quarter.

The real estate sector contributed approximately NIS 81
million to the net profits of the Group in the first six months of 2007, NIS
62 million of which in the second quarter 2007, compared with NIS 129 million
last year, NIS 101 million of which in the second quarter 2006. The lower net
income primarily follows, that no revenues were recorded this quarter on
account of the valuation of assets, net, as compared with the same period
last year.

Insurance and Finance Operations: The activities or this
segment are primarily conducted through Israeli insurance company, Phoenix
Holdings Ltd., and general US insurer, Republic Companies Group Inc.

The insurance and financial services sector contributed NIS
173 million to the Group's net income in the first six months of 2007, NIS 83
million of which in the second quarter of 2007, compared with NIS 26 million
in the first six months of 2006, NIS 1 million of which in the second quarter
of 2006. The substantial increase in contribution to net income follows the
increased investment in the insurance sector towards the end of 2006 with the
acquisition 100% of Republic Companies Group and 55.5% control in Phoenix
Holdings. During the first quarter of 2007 the Group sold its 12.2%
shareholding in Menora.

Dividend Distribution

On August 29, 2007, the Board of Directors of Delek Group
declared a cash dividend distribution for the second quarter of 2007 to the
amount of NIS 200 million (NIS 17.13 share) to the shareholders on record as
of 23rd September 2007. The ex-date is September 24th 2007 and the dividend
will be paid on October 8th, 2007.

Conference Call Details

The Company will be hosting a conference call today, August
29, 2007, at 10:00 am EDT. On the call, management will review and discuss
the results and will be available to answer investor questions. To
participate, please call one of the following teleconferencing numbers.
Please begin placing your calls at least 5 minutes before the conference call
commences. If you are unable to connect using the toll-free numbers, please
try the international dial-in number.

US Dial-in Number: +1-888-668-9141 UK Dial-in Number: 800-032-3367

Israel Dial-in Number: +972(0)3-918-0691 International Dial-in Number: 
+972-3-918-0691 at: 10:00am Eastern Time, 7:00am Pacific Time, 3:00pm 
UK Time, 5:00pm Israel Time

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), 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
    Head of Investor Relations
    Delek Group
    Tel: +972-9-863-8444
    Email: black_d@delek.co.il

    Kenny Green
    International Investor Relations
    GK International
    Tel: (US) +1-646-201-9246 / (UK) +44-(0)871-474-1218
    E-mail: info@gkir.com