Delek : Announces Consolidated Results for the First Six Months of 2014

Tel Aviv, August 28, 2014, Delek Group Ltd. (TASE: DLEKG, OTCQX: DGRLY) (hereinafter: "Delek Group" or "The Group") announced today its results for the three and six month period ended June 30, 2014 . The full financial statements are available in English on Delek Group's website at: www.delek-group.com.

- Following the successful sale of various non-core assets on an earlier schedule than expected, the Group is examining an additional listing of shares on the London Stock Exchange;

- The Company signed a non-binding MOU for the sale of control in the Phoenix Holdings; the sale of Delek Europe BV was closed; holdings in Barak Capital were successfully sold;

- Due to the sale of non-core assets, the various assets were revalued on the balance sheet and the result was a write-down charge of NIS 984 million in the first six months of 2014;

- Net income, excluding write-down charge was approximately NIS 189 million in the first six months of 2014;

Group revenues for the first six months of 2014 were approximately NIS 10 billion, at a similar level to that of the same period last year.

Operating profit were NIS 338 million in the first six months of 2014 compared with NIS 836 million last year, mainly due to a reduction in the operating profit from the insurance segment in Israel as well as an increase in the amortization of assets in the process of being sold.

Net Loss for the first six months of 2014 totaled NIS 795 million, compared with a net income of NIS 569 millionin the first six months of 2013.

The loss was due to the balance sheet write-down of the values of various holdings which the Company intends to divest of in the near future. In line with IFRS, following the sale of Delek US shares, the agreements with regard to the sale of Republic Insurance Companies and Barak Capital, as well as the non-binding MOU signed to sell and cede control of Phoenix Holdings Ltd., NIS 984 million was written down, thereby significantly reducing the net profit. The net income excluding the amortization impact, reaches NIS 189 million compared to NIS 569 million for the same period last year.

Cash balance at the Delek Group correct as of August 28, 2014, stands at NIS 2.2 billion (including unutilized credit lines).

The following one-time write-downs were included in the results for the three and six months period ended June 30, 2014 (NIS millions):

Commented Mr. Bartfeld , CEO of Delek Group, "We are very pleased that our strategy to move our Group's full focus on the oil and gas E&P assets is happening ahead of our schedule. In light of this success, we are considering the possibility of dual listing Delek Group's shares on the primary market of the London Stock Exchange."

Mr Bartfeld continued , "While the write-downs did have an impact on our profit in the second quarter, we see this as a short-term and non-cash event. The sale of non-core assets has contributed approximately NIS 1.9 billion to the Group's cash flow and continues to strengthen the Group's financial position. We believe that over the long-run, the Group's divestment of its non-core assets will allow us to focus all our energies on maximizing shareholder value through the realization of the inherent potential within our Oil & Gas assets."

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

Energy & Infrastructure

Oil and Gas Exploration (Israel) Sector Highlights

Tamar Project, 11 TCF natural gas discoveries (Tamar and Tamar SW). Tamar