An Agreement Signed for a $600 Million Syndicated Loan Between Oil Refineries and a Group of Financing Bodies led by Bank Hapoalim

By Oil Refineries Ltd, PRNE
Tuesday, June 29, 2010

The Loan Agreement Signed Under the Framework of a Complete Financing Plan for US$900 Million to Implement the Company's Strategic Plan Which Includes the Establishment of Hydrocracker Unit at a Cost of US$500 Million

HAIFA, Israel, June 30, 2010 - Oil Refineries Ltd. (TASE: ORL.TA) ("Oil Refineries" or the
"Company") and the syndicate of local banks led by Bank Hapoalim, has today
signed an agreement for a loan of US$600 million, as part of a financing
program of US$900 million, to continue the implementation of the Company's
strategic plan and its additional credit needs until the end of 2012. The
financing program also includes the backing of US EX-IM Bank for additional
loans totaling US$300 million dollars, for the purchase of equipment from
abroad. The EX-IM Bank backing has been approved by the United States
Congress in February this year.

The financing plan has been approved by ORL's Board of
Directors for ORL's general funding needs until the end of 2012 which
include, first and foremost the hydrocracker project, which is expected to
cost around US$500 million, and for additional investments and for
refinancing of the Company's debt during this period.

Bank Hapoalim, through its business division, organized and
managed the financing. Apart from Bank Haopalim, the financing group
includes: Leumi Bank, Discount Bank, First International Bank, Mizrahi Bank,
Union Bank, Amitim - Pension funds, Clal Insurance Company and Harel
Insurance Company.

The hydrocracker which will be set up at the Haifa refinery,
with an expected investment of US$500 million, whose primary products are
diesel fuel and kerosene (jet fuel), is expected to be operational in early
2012. The hydrocracker unit will allow, once operated, production of more
distillates with higher added value per barrel, and will increase the
flexibility of the refinery in its selection of raw materials and product
mix, to suit changing market conditions. Repayment of the principle of the
loans will commence only 12 months after the hydrocracker begins its
operations, which is sufficient time after the Company is expected to begin
enjoying the added value provided by the unit.

With the establishment of the hydrocracker facility, it is expected that
the Nelson Complexity Index of ORL, which currently stands at 7.4, will
increase to the 9 mark. The implication of the increased index complexity is
the ability to produce higher value added from each a barrel of oil.

Completion of this process depends on the fulfillment of conditions
precedent up to December 31, 2010, including the signing of a detailed
agreement with EX-IM Bank.

Yossi Rosen, Chairman of Oil Refineries: "This is the largest
investment program carried out in the Israeli market in recent years. ORL is
one of the few companies in the market with the ability and financial
strength to lead a program of such magnitude. We expect that the different
regulatory bodies that are involved in the project will assist in shortening
the approval process in order to allow the company to establish the unit
during this period where the local economy is in much need for investment and

Yashar Ben Mordechai, CEO of Oil Refineries: "The plan to establish a
hydrocracker unit is expected to improve the Company's competitive
positioning in the Mediterranean fuel markets and strengthen the State of
economy in general and the Haifa Bay Area in particular."

Shimon Gal, Head of the Business Division at Bank Hapoalim:
"We are proud to have successfully arranged this financing package for Oil
Refineries which will be used for investment in equipment and infrastructure,
and is expected to strengthen the Company. The business division of Bank
Hapoalim, met the specific financing needs of Oil Refineries, using the
business division's highly professional abilities."

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city
of Haifa, operates Israel's largest oil refinery. ORL operates sophisticated
and state-of-the-art industrial facilities with refining capacity of 9.8
million tons of crude oil per year, with a Nelson Complexity Index of 7.4,
providing a variety of quality products used in industrial operation,
transportation, private consumption, agriculture and infrastructure. The
Company is also active in the area of Polymers and Aromatics through its
holdings in Carmel Olefins Ltd and Gadiv Petrochemical Industries Ltd. The
Company also provides power and heat services to industrial customers in the
Haifa Bay, as well as infrastructure services. Oil Refineries' major
shareholders are the Israel Corporation and Israel Petrochemical Enterprises,
both public companies listed on the Tel Aviv Stock Exchange. Since 2007, the
Company's shares have been listed on the Tel Aviv Stock Exchange under the
ticker ORL. For additional information please visit

The above noted in this release includes forward-looking
statements based on Company data, as well as Company plans and estimations
based on this data. The activity, results and other data may be substantially
different in reality given uncertainty and various risks, including those
discussed under risk factors in the Company's financial statements and
Director's reports.

    Company Contact:
    Rony Solonicof
    Chief Economist and Head of Investor Relations
    Tel. +972-4-878-8152

    Investor Relations Contact:
    Ehud Helft / Porat Saar
    CCG Israel
    Tel. (US) +1-646-797-2868 / (Int.) +972-52-776-3687

Company Contact: Rony Solonicof, Chief Economist and Head of Investor Relations, Tel. +972-4-878-8152, IREn at ; Investor Relations Contact: Ehud Helft / Porat Saar, CCG Israel, Tel. (US) +1-646-797-2868 / (Int.) +972-52-776-3687, ORL at

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