Republic Sells Holding in Mexican Insurance Company & Delek Capital Exercises Option in Barak Capital

April 29, 2007 at 12:00 AM EDT

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Tel Aviv, April 29th 2007. Delek Group (DLEKG.TA) announced today that on April 27, 2007 a foreign subsidiary of Delek Capital, Republic Companies Inc. (hereinafter: "Republic") signed an agreement for the sale of its entire shareholding in the Mexican Insurance Company – Seguros Atlas SA (hereinafter: "Atlas"), an insurance company active in the areas of life insurance, health, property and casualty insurance in Mexico (representing approximately 30% of Atlas' share capital), for a total consideration of approximately US$28.5 million. As a result of the transaction, Republic is expected to record a capital gain of approximately US$1 million. The transaction is expected to be completed in the next few days.

On April 29, 2007, and following the immediate reports issued on February 5, 2007 and April 18, 2007 on the subject, Delek Capital notified Barak Capital Ltd. (hereinafter: "Barak Capital") of the exercise of its Option to purchase Barak Capital's shares for a total consideration of NIS 24 million, and to extend a shareholders loan, as detailed in the above noted immediate reports. The transaction is expected to close May 1, 2007. Following completion of the above noted sale, Delek Capital will hold 49.9% of Barak Capital's issued and outstanding share capital.

Contact

Dalia Black

Head 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) 1 866 704 6710 / (UK) 0871 474 1218
E-mail: ehud@gk-biz.com / kenny@gk-biz.com