Delek : Advanced Negotiations for the Power Station Sale

Tel Aviv, July 20, 2016. Delek Group (TASE: DLEKG,US ADR:DGRLY)('the Company') is hereby pleased to announce that its wholly owned subsidiary is in advanced negotiations with a group of institutional and private investors to sell the Company's holdings (100%) in the 87 MW power station in Ashkelon's desalination compound in return for NIS 200 million.

If a binding agreement is signed between the parties, the Company will issue a detailed immediate report.

Forward looking information:The foregoing information, including regarding the consideration, is forward looking information, as defined in section 32A of the Securities Law, and there is no certainty that it will materialize, in whole or in part, in the manner stated or any other manner, and may materialize in a materially different manner, and specifically there is no certainty that a binding agreement will be signed, under the conditions stated or under other conditions.

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company onJuly 19, 2016.

The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.

In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.

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