Delek Group Subsidiaries Announce Preliminary Results of 3D Seismic Survey & Updates on Tamar & Mari-B Fields

TEL AVIV, Israel, June 3, 2010 - Delek Group (TASE: DLEKG, OTCQX; DGRLY hereinafter "the
Company") reported that its subsidiaries Delek Energy Ltd., Delek Drilling
L.P. and Avner Oil & Gas Exploration L.P. published the following immediate
report;

Following the meeting of the partners of the various projects
(according to the subject) that took place 2nd June 2010 and the media
reports Delek Drilling L.P. and Avner Oil & Gas Exploration L.P.
("Partnership") are pleased to announce as follows:

Preliminary results from processing and interpretation of the three
dimensional seismic survey:

The Partnership is pleased to announce that on 6th February 2010 Noble
Energy Mediterranean Ltd. (Hereinafter: "Noble"), operator of the
partnerships, during the meeting presented the preliminary findings from the
processing and interpretation of the three dimensional seismic survey (3D),
carried out on licenses "Amit", "Rachel" and parts of the "Hannah", "David"
and "Eran" Licenses (hereinafter: "Ratio Yam") and the licenses "Alon A" and
"Alon B".

Noble initially focused on initial processing and interpretation of the
seismic data covering the "Leviathan" prospect found in tertiary layers of
sand (corresponding to the reservoir sands identified in Tamar (the "tertiary
sands")) contained in the licenses "Rachel" and "Amit". Noble estimates, on
the basis of the above information, that the gross mean recoverable resource
of natural gas in the prospect is about 16 TCF (about 453 BCM), and that the
probability of Geologic Success is 50% . In light of the above, Noble intends
soon to recommend to the partners the drilling of an exploration well on the
Leviathan prospect, which will begin in the last quarter of 2010. It should
be noted that Noble has not yet finalized a drilling program for the well and
therefore has not yet submitted final plans or a budget to the partners for
this well. Drilling of the well will be subject to the approval of the
Partners.

Additionally, Noble said that following the initial processing and
interpretation of this seismic data, it identified additional tertiary
prospects on the Ratio Yam licenses ("the other Ratio Prospects) with an
unrisked estimated gross mean resource of approximately 3 TCF (approximately
85 BCM). This estimation does not calculate the geological probability of
finding hydrocarbons within these prospects.

In addition, Noble said to the Partnership that on the basis of the 2D
and/or 3D seismic data, they have identified additional tertiary prospects in
other licenses, in which the Partnership owns rights and operates in a joint
venture together with Noble, and including in the area of Block 12 in Cyprus
("Additional Prospects"). Noble estimates that the unrisked gross mean
resource potential of the Leviathan prospect, the Other Ratio Prospects and
the Additional Prospects amounts to more than 30 TCF (about 850 BCM). This
estimate does not calculate the geological probability of finding
hydrocarbons within these prospects.

It should be noted that the Other Ratio Prospects and the
Additional Prospects identified are in initial stages of formation, and the
final geological probability of discovering hydrocarbons has still not been
formulated within these prospects.

Furthermore, Noble noted that it began to examine the potential existence
of additional layers of pre-Miocene age (significantly deeper than the
tertiary sand layers) in the Partnership's Licenses (including the Tamar and
Dalit areas), which may have further potential for oil and gas. These
examinations have not yet crystallized into specific prospects.

Warning with regard to "forward-looking information" - The
estimates cited above is information, as provided - by Nobel, including the
future average economic potential of the natural gas reserves in the
prospect, and the geological probability of finding hydrocarbons, are
forward-looking statements within the meaning of the Securities Act. The
partnership has no an independent examination of the information or the
estimates above and cannot vouch for its accuracy. It should be emphasized
that in accordance with the best knowledge of the partnership, the values
provided by Noble is based on a broad model of the prospect, which is based
on a large number of data variables and assumptions include estimates of
workload, of which some are subjective and speculative (data not proven and
based on partial information and various assumptions), and the model is very
sensitive to the above variables, and which may change materially and
therefore change the estimates. There is no certainty about these
above-mentioned estimates which may be updated as new information is
accumulated, as a result of the complex factors associated with exploration
and production projects of natural gas and oil.

Follow-up evaluation of natural gas reserves in the Tamar

Following on from our immediate report dated August 8, 2009 ("Previous
Report"), we are pleased to announce that Noble Energy Mediterranean Ltd..
(Hereinafter: "Noble") the Tamar operator, has announced that it has received
a report from Netherland, Sewell and Associates, Inc. (Hereinafter: "NSAI")
concerning the natural gas reserves in Tamar. The update was based on the
results received in the analysis of the cores extracted from the Tamar 2
well. NSAI is a leading independent engineering consulting firm that provides
third party estimates of oil and natural gas reserves.

According to the NSAI report, the Tamar natural gas reserves, which will
be categorized as 2P Reserves (Proved + Probable)subject to the approval of
the Tamar field development plan (which will also include a reasonable
expectation to sell natural gas produced from the field) are estimated at
8.7-TCF (about 247 BCM), compared with about 7.7 TCF (about 218 BCM),
reported in our Previous Report (an increase of about 13%). The 1P gas
reserves (Proved Reserves), total about 6.5 TCF (about 184 BCM), compared
with about 6 TCF (about 170 BCM) reported in our Previous Report (an increase
of about 8%).

NSAI also provided a report estimating the Gross Mean Resources in Tamar
to be 8.4 TCF (about 238 BCM), compared with about 7.3 TCF (about 207 BCM)
reported in our Previous Report (an increase of about 15%).

Tamar field holding percentages are as follows:

    Noble Mediterranean: 36.00%
    Israemco Negev 2, limited partnership: 28.75%
    Delek Drilling, limited partnership: 15.625%
    Avner Oil Exploration, Limited Partnership: 15.625%
    Dor Gas exploration, limited partnership: 4.00%

Warning with regard to "forward-looking statements". The data presented
above including NSAI estimates of the volume of the well's natural gas
reserves, as well as estimates of the natural gas reserves at Tamar,
constitute Forward Looking Statements as defined under the Israel Securities'
Law. These estimates are based on geological, geophysical and other estimates
received from the Drill Operator and serve, at this time, only as estimates
whereby there is no certainty as of yet with regards to them. The Partnership
has not conducted its own estimates or independent evaluations of these said
estimates. These estimates are expected to be updated as additional
information is accumulated, including as a result of the continued analysis
of the well proceeds, the conduction of production tests and the conduction
of validation drilling, should they be conducted, and/or as a result of a
variety of factors related to projects searching for, and producing, natural
gas.

Natural gas reserves update at Mari-B field

Following the immediate report dated March 4, 2010, Noble announced to
the partnership that on the basis of production data analysis, including data
on production and reservoir pressure history at Mari-B, it estimates that
natural gas reserves in Mary-B may increase by 50-100 BCF (about 1.4 - 2.8
BCM) which assessment is under review at NSAI.

Warning with regard to "forward-looking statements" - The data presented
above, regarding the natural gas reserves in the Mary-B are all based on
geological geophysical and other information, and are received from the
drilling field at Mary B and Nobel, the project operator, which at this stage
has provided its professional assessments, for which there is still no
certainty, and is considered forward-looking information within the meaning
of the Securities Law. The partnership has no independent evaluation or
testing of the data, and is received as stated. These estimates may be
updated as information accumulated and / or as a result of complex factors
associated with exploration and production projects of oil and gas, including
a result of continued production data analysis in the near future.

THIS IS A SUMMARY OF THE HEBREW ANNOUNCEMENT ISSUED TO THE TEL AVIV STOCK
EXCHANGE ON JUNE 03, 2010. FOR FULL DETAILS PLEASE SEE WWW.TASE.CO.IL

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 over 43 billion Israeli shekel in 2009.

    Contact

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

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

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