Delek Group Announces Consolidated Results for the Fourth Quarter and Full Year of 2009

TEL AVIV, Israel, March 26, 2010 - Delek Group Ltd. (TASE: DLEKG , OTC: DGRLY) (hereinafter:
"Delek Group" or "The Group") announced today its results for the three and
twelve month period ending December 31, 2009. The full financial statements
will be available in English on Delek Group's website March 28, 2010 at:
www.delek-group.com.

    Full Year 2009 Highlights

    - Significant natural gas reserves discovered in the Tamar
      field in the process of being commercialised;

    - Return to profitability in all sectors with particularly
      strong improvement in the financial sector;

    - Full year net income reached NIS 869 million; fourth quarter
      net income of NIS 424 million;

    - Successfully raised NIS1.5bn in new capital in 2009
      significantly strengthening the balance sheet;

    - Delek Group distributed a total of NIS 460 million in
      dividends for the year;

Group revenues for the full year 2009 were NIS 43.4 billion, a
6% decrease compared with NIS 46.2 billion in 2008. Revenues for the fourth
quarter of 2009 increased 58% reaching NIS 11.6 billion, compared to NIS 7.3
billion in the same period last year. The decrease in revenues was primarily
as a result of lower gasoline sales in Israel, Europe and the United States,
as well as the lower price of oil and lower revenues from the US refinery
which only restarted operations towards the end of the second quarter. This
was partially offset by an improvement in income from investments in the
insurance and finance sectors.

Net income for the full year 2009 totaled NIS 869 million, a
significant improvement compared with a net loss of NIS 542 million in 2008.
Net income for the fourth quarter of 2009 totaled NIS 424 million, a
significant improvement compared with a net loss of NIS 1,438 million in the
fourth quarter of 2008 (these results do not include the real estate sector
that was distributed in dividend in kind in March 2010). Net income increased
due to an improvement across all sectors, in particular the financial and
insurance sector, as well as a number of significant capital gains.

Capital gains at the Group level amounted to NIS 518 million
for the full year 2009, generated mainly from the sale of the majority of the
Company's holdings in HOT Communications and the sale of shares in Delek
Energy, amongst other equity sales.

Group total assets as of December 31, 2009, amounted to NIS
84.3 billion, compared with NIS 76.6 billion as of December 31, 2008. During
2009, Delek Group successfully raised and restructured a total of NIS 1.5
billion in debt, all of which is long-term.

Mr. Asaf Bartfeld, CEO of Delek Group commented, "2009 started
in the midst of a global crisis, and ended as one of the most successful
years in our history. The strong results that we reported today, are as a
direct consequence of the correct strategic actions that were taken by the
management of Delek Group and its subsidiaries throughout the past year to
navigate the downturn. The Group and its subsidiaries have strongly improved
profitability across the board and all sectors emerged 2009 in profit. We
have continued to strengthen our net asset value, and can demonstrate
significant solidity of our balance sheet strength across the Group and all
its subsidiaries. We have emerged from the challenges of the last year in a
very strong position, with the strength to take advantage of new
opportunities in the market. Today, after the recent capital gains as well as
the new capital raised in the past few months, the Company at the holding
level has approximately NIS 2 billion in cash and cash equivalents. This
demonstrates the financial strength of Delek Group and its ability to exploit
new business opportunities, if and when they emerge."

Mr. Asaf Bartfeld, continued, "Looking ahead to 2010 and
beyond, we intend to maintain our focus on the Group's core businesses of
energy and infrastructure, automotive and finance - all of which remain the
engines of future growth of the Group. In addition, we look forward to the
commercialisation of the Tamar and Dalit natural gas sites, which I believe
can change the face of the Israeli economy. Together with our partners Noble
Energy we are in the process of exploring additional acreage surrounding
Tamar and we should receive results of the seismic studies around the middle
of 2010."

"In the Infrastructure sector, the subsidiary IDE that is
focused on water desalination continues to win significant tenders including
at the Soreq facility in Israel a 150 million m3 a year plant, as well as a
new facility in Cyprus. In the Energy sector, we remain committed to continue
strengthening our market position in the retail fuel market in both the U.S.
and Europe, including France as well as the completion of the BP deal. The
financial sector has returned to profit, and in the Automotive sector, we
will make every effort to continue to lead the market for coming years, just
as we have done for the past 14 consecutive years."

Main Business Highlights

Contribution of Principal Operations to Net Income* (NIS
millions)

                                          Q1 2009  Q2   Q3   Q4  2009   2008
                                                  2009 2009
                                                            2009
    US Fuel Sector Operations               (2)    97  (14)  (54)  27      1
    Israeli Fuel Sector Operations          32     29    9    12   82     62
    Delek Europe                             7     41   (2)   13   59     44
    Restructuring expenses at Delek         (4)     -    -   (12) (16)   (81)
    Europe
    Oil and Gas Exploration                (34)     2   52     2   23     65
    Oil Exploration Expenses                 -      -    -     -    -    (74)
    Automotive Operations                   54     53   65    78  250    288
    Insurance and Finance Operations        82      6   23    70  181   (467)
    Capital Gains & Others                  27     (5) (73)  314  263   (380)
    Net Income (loss) excl. Real Estate    162    223   60   424  869   (542)
    Activities

    Real Estate activities                  (5)     -    -     -  (5) (1,267)
    Net income (loss) attributed Group's    157   223   60   424  864 (1,809)
    shareholders

* Parts of the above table have been extracted from Delek Group's Full
Year and Fourth Quarter 2009 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.

Energy & Infrastructure

The Oil and Gas Exploration, and Gas Production sector. In
July 2009, the partners in the drilling at the Tamar field received a third
party reserve report, showing the amount of 2P (proved and probable) reserves
of natural gas to be as high as 7.7 TCF (218 BCM) at the Tamar Field. Tamar's
partners have already signed agreements totalling over $11bn for the supply
of natural gas following commercialisation, which is expected in 2012 and
remains on track. The Company is also continuing further exploration activity
in the area and expects results of the seismic studies in the middle of 2010.

Net income from the sector for 2009 was NIS 22 million, as
compared to a net loss of NIS 9 million in 2008. Net income for the fourth
quarter of 2009 was NIS2 million, as compared to net loss of NIS 22 million
in the same period last year.

A reduced volume of gas was sold in Israel to the IEC during
2009, as compared with 2008. This was due to reduced public demand for
electricity due to more temperate weather conditions in the first half of the
year, a general decrease in economic activity, as well as increased sales by
the alternative gas supplier EMG, to the IEC. Despite the decline in gas
volumes sold, there was no significant change in net income due to the
increased price of gas and currency exchange rate impacts.

Delek US (NYSE: DK; Delek Group holds 74% end-2009): Net
income in 2009 was NIS 33 million compared with NIS 3 million in 2008. Net
operating profit contribution from the refining and marketing sectors was NIS
277 million in 2009 compared with NIS 42 million in 2008. The net operating
profit contribution from convenience stores amounted to a loss of NIS 36
million compared with NIS 146 million in 2008.

In the Company's refining segment, Delek US' results were
affected by weak Gulf Coast refining economics, which is evidenced by a
significant decline in the benchmark Gulf Coast 5-3-2 crack spread. The
average 5-3-2 crack spread was US$5.97/barrel during 2009 compared with
US$11.13/barrel in 2008. In addition, the direct operating expenses per
barrel increased in 2009 by approximately US$2/barrel due to the fact that
the refinery operated for 228 days compared to 324 days in 2008. During 2009,
the Company's Tyler refinery was offline between November 2008 and May 2009
due to a fire at the facility. However, the Company benefited from the
receipt of gross insurance proceeds mostly as a result of business
interruption insurance whilst the Tyler refinery was shut down. The Company
anticipates receiving additional insurance proceeds during 2010. In May 2009,
Delek US completed the rebuilding of the unit damaged in the fire, and the
refinery resumed operation. Delek US also initiated discretionary and
maintenance-related capital projects to enhance the safety, reliability and
efficiency of the Tyler refinery throughout the year.

In the retail segment, there was weak demand for fuel and
merchandise during the first half of 2009 due to the general economic
weakness. However, business improved considerably during the second half of
the year, signalling a broad-based stabilization in the Company's core
Southeastern U.S. markets.

Delek - the Israel Fuel Company Ltd. (TASE: DLKIS.TA; Delek
Group holds 77% end-2009): Net income in 2009 amounted to NIS 90 million
compared with a net income of NIS 50 million in the same period in 2008. Net
income in the fourth quarter of 2009 amounted to NIS 10 million compared with
a net loss of NIS 44 million in the same period in 2008.

Results were affected by the lower average gasoline prices
throughout most of 2009. However, this was somewhat compensated by increased
margins due to the transfer of ownership of a number of gas stations to the
direct control and operation of Delek Israel. In addition, there was an
increase in sales of gasoline for commercial enterprises, an increase in
sales at convenience stores due to the opening of new stores as well as an
increase in same store sales.

Delek Europe. Net income in 2009 was EUR8 million, compared
with a net loss of EUR9 million in 2008. In 2008, Delek Europe had a one-time
reorganisation expense of EUR16 million. Past the balance sheet date, Delek
Europe made an offer to BP for the acquisition of its retail fuels and
convenience business in France, including 416 petrol stations and its
interests in 3 terminals. Delek Europe has offered to pay EUR180 million,
subject to working capital and other adjustments at completion.

IDE (water desalination, 50% indirectly held by Delek Group).
IDE achieved record net income in 2009 at $71 million compared with $11
million in 2008. IDE issued a dividend for the first time, amounting to NIS
40 million for 2009. IDE won a tender in May to supply three desalination
plants for an Asian customer and signed a contract to establish a
desalination plant in July for an industrial client in Australia. In
addition, IDE won a tender to extend its desalination project in Hadera,
(Northern Israel) and to build additional plants in Israel & Cyprus.

Insurance and Financial Services

The activities of this segment are primarily conducted through
two insurance companies; Israeli insurance company, Phoenix Holdings Ltd.
(TASE: PHOE), and general US insurer, Republic Companies, Inc. that is an
indirectly wholly owned subsidiary. The insurance and financial services
sector contributed NIS 181 million to the Group's net income in 2009,
compared to a loss of NIS 467 million in 2008. In the fourth quarter the
contribution was NIS 70 million, compared to a net loss NIS 326 million in
the same period of last year.

The results were substantially improved over those of last
year due to the significant improvement in the capital market environment
globally and in Israel since the beginning of 2009.

Automotive Operations

Delek Automotive Systems Ltd. (TASE: DLEA.TA; Delek Group
holds 55% end-Q4 2009): Delek Automotive is the exclusive distributor of
Mazda and Ford in Israel. Net income at Delek Automotive in 2009 reached NIS
434 million compared to a net income of NIS 504 million in 2008. Net income
at Delek Automotive in the fourth quarter of 2009 reached NIS 129 million
compared to a net loss of NIS 20 million shekels in the same period last
year. The decrease was primarily due to fluctuations in currency exchange
rates.

The company increased its market share to 25% of the Israeli
car market in 2009, compared with 22% last year, and sold a record 44,174
cars during the year, compared with 43,171 in 2008. The company began
successfully selling the new popular Mazda-3 model car in July 2009.

Dividend Distribution

On March 24, 2010, the Board of Directors of Delek Group
declared a cash dividend distribution for the fourth quarter of 2009 the
amount of approximately NIS 100 million (approximately NIS 8.79 per share) to
the shareholders on record as of 14 April 2010. The ex-date is 15 April 2010
and the dividend will be paid on 28 April, 2010.

The total amount of dividend declared for the year 2009
amounted to NIS 460 million. This excludes an additional dividend of the
majority of the shares of Delek Real Estate (TASE: DLKR) held by the Company
until March 31, 2009 to the Company's shareholders. Delek Group shareholders
were issued approximately 8.8 Delek Real Estate shares for one Delek Group
share.

Conference Call Details

The Company will be hosting a conference call in English on
Friday, March 26, 2010 at 8:00am EDT, 12:00pm UK time and 3:00pm Israel time.
On the call, CEO Asaf Bartfeld, CFO Barak Mashraki and Head of Investor
Relations, Dalia Black, will review and discuss the results, and will be
available to answer your questions.

To participate, please call one of the following
teleconferencing numbers:

US: 1-888-407-2553, UK: 0-808-051-8913 and Israel: 03-918-0691.

About The Delek Group

Delek Group is the leading energy & infrastructure group based
out of Israel with investments in upstream & downstream energy, water
desalination and power plants globally. In addition, Delek is the number one
importer & distributor of vehicles in Israel and owns insurance assets in
Israel and the US. Earlier this year, Delek Group, through its subsidiaries,
discovered significant quantities of high quality natural gas off the coast
of Israel. Delek Group sales reached 43 billion Israeli shekels in 2009.

For more information on Delek Group please visit
www.delek-group.com.

                               Delek Group Income Statement (NIS Millions)

                          1-3/09 4-6/09 7-9/09 10-12/09   2009    2008   2007
    Revenue                9,118 10,765 11,919   11,645 43,447  46,240 39,118
    Cost of revenue        7,482  9,158 10,245   10,147 37,032  40,549 32,929
    Gross profit           1,636  1,607  1,674    1,498  6,415   5,691  6,189

    Sales, marketing and
    operating expenses -
    gas stations             855    899    881      791  3,426   3,259  2,451
    General and
    administrative
    expenses                 422    394    403      549  1,768   1,476  1,067
    Other income
    (expenses), net           68    199   (28)       72    311      40   (35)
    Profit from operating
    activities               427    513    362      230  1,532     996  2,636

    Financing income, net    174    124    159      152    609     340    198
    Financial expenses,
    net                      308    340    531      270  1,449   1,798  1,068
    Profit (loss) after
    financing                293    297   (10)      112    692    (462) 1,766

    Profit from
    realization of
    investments in
    associates and others,
    net                        -     31      4      483    518      69    367
    Group's equity in
    profits (losses) of
    associates and
    partnerships, net         65     66     47       13    191     (12)   174
    Profit (loss) before     358    394     41      612  1,405    (405) 2,307
    income tax

    Income tax (tax          100     99    (86)     102    215     (37)   607
    benefit)
    Profit (loss) from
    continuing operations    258    295    127      506  1,186    (368) 1,700
    Profit (loss) from
    discontinued
    operations                17      -      -        -     17  (1,945)   536
    Profit (loss)            275    295    127      506  1,203  (2,313) 2,236

    Attributable to:
    Company shareholders     157    223     60      424    864  (1,809) 1,297
    Non-controlling          118     72     67       82    339    (504)   939
    interest
                             275    295    127      506  1,203  (2,313) 2,236

The notes are an integral part of the financial statement and can be
found at www.delek-group.com

    Contact

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

    Kenny Green / Ehud Helft
    International Investor Relations
    GK Investor Relations
    Tel: (US) +1-646-201-9246
    E-mail: delek-group-ir@gkir.com

Contact: Dalia Black, Head of Investor Relations, Delek Group, Tel: +972-9-863-8444, Email: black_d at delek.co.il . Kenny Green / Ehud Helft, International Investor Relations, GK Investor Relations, Tel: (US) +1-646-201-9246, E-mail: delek-group-ir at gkir.com .