HAIFA, Israel, November 21, 2010 /PRNewswire/ --

- Consolidated Adjusted EBITDA for the First Nine Months of 2010 at $161 Million Compared With $150 Million for the First Nine Months of 2009 - Third Quarter Quantity Refined Totaled 2,314 Tons With 94.5% Utilization Rate Compared With 1.765 Tons and 76.5% Utilization Rate in the Same Period of the Previous Year

Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter "the Company," "ORL"), Israel's largest integrated refining and petrochemical group, announced today its financial results for the third quarter 2010, ending September 30, 2010. Results are reported in US Dollars ($) and under International Financial Reporting Standards (IFRS).

- First nine months adjusted refining margin at $/bbl 3.1, compared with $/bbl 2.9 average Reuter's quoted Mediterranean Ural Cracking Margin for the same period. Third quarter 2010 adjusted refining margin at $/bbl 1.7, the same as $/bbl 1.7 average Reuter's quoted Mediterranean Ural Cracking Margin. - First nine months EBITDA from Petrochemicals segment totaled $124 million compared with $54 million in the same period of the previous year. Third quarter EBITDA from Petrochemicals segment totaled $47 million compared with $22 million in the same quarter of the previous year. In 2009 50% of CAOL's results were consolidated with ORL's annual reports. HBO was not consolidated at all in 2009. - First nine months adjusted EBITDA in the Refining and Trade segment totaled $42 million compared with $96 million in the same period of the previous year. Third quarter consolidated adjusted EBITDA in the Refining and Trade segment totaled $4 million compared with $57 million in the same quarter of the previous year.

Note: This period saw volatility in the price of crude oil and its products, with crude oil prices in April rising to levels not seen since the end of 2008 when Brent crude oil was trading at a price of $85/barrel. The rise in oil prices was supported by the expectation of strong growth and demand of future crude oil contracts, which are also used as an investment instrument. In May this year, with the development of the debt crisis in the euro zone and the decline in the financial markets, crude oil prices were pushed down sharply to about $68/barrel. Prices rose again in the third quarter, reaching $81/barrel by the end of the quarter. Meanwhile, the global demand for crude oil has increased, reaching 87 million barrels a day with an increase in demand also coming from developed countries (OECD) for the first time since 2004.

As accepted by major leading international refiners and marketers of oil and its products, the results are presented as reported as well as net of the accounting provision for inventory gains or write offs, in addition to buying and selling timing and derivative accounting methods under IFRS. This is in order to enable a common base for comparison of the Company's ongoing operations.

FIRST NINE MONTHS 2010 ($ millions)

Operating Profit EBITDA Q1-Q3/10 Q1-Q3/09 Q1-Q3/10 Q1-Q3/09 Refining Segment 24 64 55 96 Adjusted Trade Segment (13) - (13) - Petrochemicals 57 8 91 28 Segment - Polymers Petrochemicals 20 21 24 26 Segment - Aromatics Petrochemicals 8 - 9 - Segment - Lube-Oils

The utilization rate for the first nine months of 2010 was at 93.6%, compared with 81.7% for same period in 2009. Quantity refined totaled 6,803 tons compared with 5,536 tons in the same period of the previous year. Output in petrochemicals segment for the first nine months of 2010 was as follows: Polymers, approximately 543 thousand tons; Aromatics, approximately 387 thousand tons; Lube-Oils, approximately 51 thousand tons.

Adjusted refining margin for the first nine months totaled $/bbl 3.1, compared with the average Mediterranean Ural Cracking Margin quoted by Reuters of $/bbl 2.9. Adjusted refining margin for the first nine months 2009 totaled $/bbl 4.9 compared with the average Mediterranean Ural Cracking margin of $/bbl 2.1.

Adjusted consolidated EBITDA for the first nine months totaled $161 million compared with $150 million in the same period of the previous year.

Financing expenses for the first nine months totaled $28 million, compared with a financing income of $8 million in the same period of the previous year.

The consolidated net income for the first nine months totaled $53 million, compared with a net income of $167 million in the same period of the previous year.

KEY DEVELOPMENTS

- Following the completion of the acquisition of Carmel Olefins (CAOL) shares, the Company has consolidated the headquarters and operational activities of CAOL with ORL and is pursuing a rapid achievement of the merger benefits between the companies. - In June, the company activated the second and final stage of converting the HVGO desulphurization plant. Activation of Stage 2 is expected to increase the Company's production of diesel fuel by an additional 3-4%. - Significant progress was made during the period in completing the connection of the natural gas pipeline to the Company's facilities. This project, which is expected to be completed by the end of 2010, will enable all of the Company's facilities to run on natural gas and is expected to yield operational efficiencies. - In order to leverage potential synergies, the company decided to invest about $45 million for the production of polymers using existing raw materials already available in the refinery. The expected return of this investment is estimated at $ 30 million per year. Likewise, the Company decided also to invest $60 million for expanding the production capacity of propylene, which is expected to yield a return of about $50 million a year. - As part of the company's strategic plan, carried out various projects in the areas of the environment as well as the reliability, safety and security of the facilities, totaling approximately $117 million, since the initiation of the strategic plan. - The company recently completed a financing agreement designated to provide for the credit needs of the company until the end of 2012. The financing agreement was signed between the Company and a consortium of financing bodies led by Bank Hapoalim (totaling up to $600 million) and an American financial institution, with financing guaranteed by the U.S. Export Credit Agency (totaling up to $300 million). The Company has drawn $200 million of this credit towards the end of the first nine months 2010 period for investments.

THIRD QUARTER 2010 ($ millions)

Operating Profit EBITDA Q3/10 Q3/09 Q3/10 Q3/09 Refining Segment (3) 48 8 60 Adjusted Trade Segment (4) (3) (4) (3) Petrochemicals 27 8 37 14 Segment - Polymers Petrochemicals 7 6 8 8 Segment - Aromatics Petrochemicals 2 - 2 - Segment - Lube-Oils

Adjusted refining margin for Q3 2010 totaled $/bbl 1.7, which was the same as the average Mediterranean Ural Cracking Margin quoted by Reuters of $/bbl 1.7. Adjusted refining margin for Q3 2009 totaled $/bbl 8.1 compared with the average Mediterranean Ural Cracking Margin of $/bbl 1.6.

Consolidated adjusted EBITDA for Q3 2010 totaled $49 million, compared with $80 million in Q3 2009.

Financing expenses for Q3 2010 totaled $20 million, compared with financing expenses of $17 million in Q3 2009.

The consolidated net income for Q3 2010 totaled $25 million, compared with a net income of $100 million in Q3 2009.

Mr. Yashar Ben Mordechai, CEO of Oil Refineries: "The Company's financial results during the first nine months and third quarter 2010 indicate the tremendous benefit and synergies of having three business segments under one roof. Despite the weakness in the fuel markets, there is an impressive strengthening of the petrochemical markets, particularly in the area of polymers. Moreover, we are beginning, following the reported period, to see signs of stronger refining margins in the Mediterranean basin. The Company is continuing to invest in its core business and has added two new investments, the first of which is $45 million investment in using existing raw materials already available in the refinery for increasing the efficiency of polymer production. The expected return of this investment is estimated at about $30 million per year. Likewise, the Company decided also to invest $60 million for expanding the propylene production capacity, which is expected to yield a return of about $50 million a year. The completion of the hydrocracker and the transition to the use of natural gas will enable the Company to become one of the strongest and most competitive refining and petrochemical company in the Mediterranean basin.

Mr. Ben Mordechai added: "In addition to our activities in strengthening the Company, we are investing great resources in improving our environmental track record. The transition to natural gas, along with other activities, will make ORL one of the more environmentally responsible oil refinery and petrochemical company in Western Europe. The completion of the hydrocracker will allow us to begin the production and sale of vastly improved diesel fuel which will result in decreased pollutant emissions from vehicles throughout the country. This process is compatible with company policies, which is to continually strive to improve the fuel quality it produces. ORL is also currently completing the turnaround and upgrade of its facilities so that it can continue working at maximum utilization for the next five years, having extended the time in between renovations from four to five years."

Mr. Yossi Rosen, Chairman of the Board of Oil Refineries: "ORL once again demonstrates its ability to defuse risk by leveraging the flexibility and diversity of its refining abilities to produce products, as needed. Upon completion of the Company's acquisition of CAOL, ORL merged the two companies' headquarters, operations and sales team, creating a management system that efficiently leveraged the advantages of the integration and added value. During the first nine months of 2010, much progress was made in the construction of the natural gas pipeline, which is expected to be completed at the end of 2010. Transitioning to the use of natural gas as a power source for the Company's facilities will give rise to further operational efficiencies.

Mr. Rosen added: "The Company has completed a number of facility upgrades which have significantly contributed to higher utilization rates and refining capacity, as well as increased EBITDA for first nine months as compared with the same period last year, despite the lower refining margins. The Company will continue to advance its strategic plan and progress with its establishment of the hydrocracker."

Conference Call

The Company will also be hosting a conference call later today, Monday, November 22nd, 2010. On the call, management will present a presentation reviewing the first quarter highlights and industry trends. The presentation is available for download from the Company's website http://www.orl.co.il: Investor Relations > Financial Reports.

To participate in the conference call, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international number.

US Dial-in Numbers: 1-888-281-1167

UK Dial-in Number: 0-800-917-5108

Israel Dial-in Number: 03-918-0664

International Dial-in Number: +972-3-918-0664

at: 15:00 UK Time, 10:00 ET, 7:00 PT, 17:00 Israel time. A replay of the call will be available after the call on the Company's website at http://www.orl.co.il.

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest integrated refining and petrochemical group. It is one of the leading refineries in the Eastern Mediterranean area and integrates, on-site, petrochemical businesses. ORL runs sophisticated and state-of-the-art industrial facilities with a refining capacity of 9.8 million tons of crude oil per year and a Nelson Complexity Index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The Company's petrochemical sector produces Polymers (through its ownership of Carmel Olefins Ltd), Aromatics (through its ownership of Gadiv Petrochemical Industries Ltd), and Lube-Oils (through its ownership of Haifa Basic Oils Ltd). The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit http://www.orl.co.il.

The above noted in this release includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports.

Condensed Consolidated Interim Statement of Financial Position

USD thousands

September 30, December 31 2010 2009 2009 (Unaudited) (Audited) Current assets Cash and cash equivalents 31,342 7,468 34,961 Deposits 84,846 77,247 77,637 Trade receivables 501,637 312,088 360,876 Other receivables and debt balances 73,518 79,491 62,495 Financial derivatives - 522 - Investments in financial assets at fair 102,957 108,588 107,034 value through comprehensive income Inventory 1,190,655 868,216 1,016,453 Current tax assets 807 46,530 3,957 Total current assets 1,985,762 1,500,150 1,663,413 Non-current assets Investments in equity-accounted investees 16,580 35,844 13,673 Investments in available-for-sale 11,165 10,510 10,909 financial assets Loan to Haifa Early Pensions Ltd. 74,142 73,126 76,053 Long term loans and debit balances 3,701 2,965 3,951 Financial derivatives 196,052 112,975 120,671 Employee benefit plan assets 10,536 5,877 9,993 Property, plant and equipment 1,936,241 1,163,691 1,891,659(*) Deferred costs 9,154 310 1,366(*) Intangible assets 82,204 22,689 93,187 Total non-current assets 2,339,775 1,427,987 2,221,462 Total assets 4,325,537 2,928,137 3,884,875

(*) Reclassified, see Note 3 (A)

The accompanying notes are an integral part of the financial statements.

Condensed Consolidated Interim Statement of Financial Position USD thousands September 30, December 31, 2010 2009 2009 (Unaudited) (Audited) Current liabilities Loans and borrowings 760,178 488,394 603,685 Trade payables 673,699 427,229 542,025 Other payables and credit balances 118,225 81,997 105,903 Current tax liability 23,828 - - Financial derivatives 27,585 26,954 28,051 Provisions 11,507 14,385 11,582 Total current liabilities 1,615,022 1,038,959 1,291,246 Non-current liabilities Bank loans 501,807 272,074 358,310 Debentures 869,816 736,253 853,205 Liabilities for finance lease 9,187 8,816 8,768 Other long-term liabilities (**) - 7,581 15,973 Financial derivatives 19,872 5,558 3,111 Employee benefits 59,201 50,967 63,871 Deferred tax liabilities 132,058 66,664 138,464 Total non-current liabilities 1,591,941 1,147,913 1,441,702 Total liabilities 3,206,963 2,186,872 2,732,948 Capital Non-controlling interests (*) - - 17,183 Share capital 586,390 472,478 586,390 Share premium 100,242 - 100,242 Reserves 41,103 34,919 35,571 Retained earnings 390,839 233,868 412,541 Total equity attributed to shareholders 1,118,574 741,265 1,134,744 of the Company Total capital 1,118,574 741,265 1,151,927 Total liabilities and capital 4,325,537 2,928,137 3,884,875

(*) See Note 8(C).

(**) See Note 8(Q)

The accompanying notes are an integral part of the financial statements.

Condensed Consolidated Interim Statement of Comprehensive Income USD thousands Nine months ended Three months ended Year ended September September September September December 30, 2010 30, 2009 30, 2010 3 0, 2009 31, 2009 (Unaudited) (Unaudited) (Audited) Revenue 5,294,531 3,647,109 1,711,721 1,454,708 5,141,480 Cost of sales, refinery and services 5,098,379 3,353,522(*) 1,606,693 1,339,789(*) 4,842,805(*) Revaluation of open positions in derivatives on prices of goods and margins, net (3,216) 39,395 34,816 (8,468) 38,606 Total cost of sales 5,095,163 3,392,917 1,641,509 1,331,321 4,881,411 Gross profit 199,368 254,192 70,212 123,387 260,069 Selling and marketing expenses (80,117) (54,357)(*) (24,243) (19,907)(*) (74,067)(*) General and administrative expenses (45,721) (25,991)(*) (11,304) (9,789)(*) (36,175)(*) Negative goodwill arising on a business combination - - - - 137,000 Profit from revaluation of a prior holding due to increase in control - - - - 77,561 Loss from the loss of material impact in a former equity-accounted investee, net of tax - (7,091) - - (7,091) Operating profit 73,530 166,753 34,665 93,691 357,297 Finance income 87,632 62,390 28,355 18,119 61,223 Finance expenses (115,894) (70,275) (48,178) (34,477) (86,866) Financing expenses, net (28,262) (7,885) (19,823) (16,358) (25,643) Company's share in profits of equity accounted investees, net of tax 600 4,711 258 873 4,892 Profit before income tax 45,868 163,579 15,100 78,206 336,546 Tax benefit 7,322 3,149 9,406 21,912 12,698 Profit for the period 53,190 166,728 24,506 100,118 349,244 Items of other comprehensive income (loss) Actuarial gains from a defined benefit plan, net of tax 108 8,702 212 2,023 4,859 Foreign exchange translation differences (176) 168 642 195 77 Group's share in other comprehensive income of an equity-accounted investee - 10,433 - - 10,433 Effective share of the change in fair value of cash flow hedging 4,995 - 4,995 - - Change in fair value of available-for-sale financial assets, net of tax 210 1,777 1,669 954 2,270 Other comprehensive income for the period, net of tax 5,137 21,080 7,518 3,172 17,639 Comprehensive income for the period: 58,327 187,808 32,024 103,290 366,883 Earnings per share (dollar) Basic and diluted earnings per ordinary share 0.022 0.083 0.010 0.050 0.175

(*) Reclassified, for details see Note 2(D) below

The accompanying notes are an integral part of the financial statements.

Results of the Group's operations The following table presents selected information of the Group for the nine months period Petrochemicals Refining Trade Polymers Aromatics Nine months ended September 30 2010 2009 2010 2009 2010 2009 2010 2009 Revenue 3,950 2,683 130 422 772 289 383 253 Inter-company operations 735 324 - 29 - - 31 30 Total sales 4,685 3,007 130 451 772 289 414 283 Cost of sales 4,570 2,789 139 449 321 146 27 9 Inter-company operations 31 30 - - 351 116 343 234 Total cost of sales 4,601 2,819 139 449 672 262 370 243 Gross profit (loss) 84 188 (9) 2 100 27 44 40 Selling, general and administrative expenses 49 43 4 2 41 17 23 18 Inter-company operations - - - - 2 2 1 1 49 43 4 2 43 19 24 19 Operating profit (loss) for segments 35 145 (13) - 57 8 20 21 Loss from loss of material impact in an equity-accounted investee Amortization of the excess cost arising from acquisition of investees Operating profit Financing expenses, net Share in profits (losses) of investees, net of tax Profit before income tax Income tax Profit for the period

(continued)

Petrochemicals Adjustments to Oils consolidated Consolidated Nine months ended September 30 2010 2009 2010 2009 2010 2009 59 - - - 5,294 3,647 Revenue - - (766) (383) - - Inter-company operations 59 - (766) (383) 5,294 3,647 Total sales 17 - - - 5,074 3,393 Cost of sales 33 - (758) (380) - - Inter-company operations 50 - (758) (380) 5,074 3,393 Total cost of sales 9 - (8) (3) 220 254 Gross profit (loss) 1 - - - 118 80 Selling, general and administrative expenses - - (3) (3) - - Inter-company operations 1 - (3) (3) 118 80 8 - (5) - 102 174 Operating profit (loss) for segments - (7) Loss from loss of material impact in an equity-accounted investee (29) - Amortization of the excess cost arising from acquisition of investees 73 167 Operating profit (28) (8) Financing expenses, net 1 5 Share in profits (losses) of investees, net of tax 46 164 Profit before income tax 7 3 Income tax 53 167 Profit for the period

The following tables present selected information of the Group for the three months period

Petrochemicals Refining Trade Polymers Aromatics Three months ended September 30 2010 2009 2010 2009 2010 2009 2010 2009 Revenue 1,305 1,042 34 192 237 113 116 107 Inter-company operations 248 135 - 11 - - 8 11 Total sales 1,553 1,177 34 203 237 113 124 118 Cost of sales 1,518 1,071 38 205 72 48 5 7 Inter-company operations 8 11 - - 127 49 106 98 Total cost of sales 1,526 1,082 38 205 199 97 111 105 Gross profit (loss) 27 95 (4) (2) 38 16 13 13 Selling, general and administrative expenses 15 14 - 1 10 7 6 7 Inter-company operations - - - - 1 1 - - 15 14 - 1 11 8 6 7 Operating profit (loss) for segments 12 81 (4) (3) 27 8 7 6 Amortization of the excess cost arising from acquisition of investees Operating profit (loss) Finance income (expenses), net Share in losses of investees, net of tax Profit (loss) before taxes on income Tax benefits (income tax) Net profit (loss) for the period

(continued)

Oils Adjustments to Consolidated consolidated Three months ended September 30 2010 2009 2010 2009 2010 2009 20 - - - 1,712 1,454 Revenue - - (256) (157) - - Inter-company operations 20 - (256) (157) 1,712 1,454 Total sales 5 - - - 1,638 1,331 Cost of sales 12 - (253) (158) - - Inter-company operations 17 - (253) (158) 1,638 1,331 Total cost of sales 3 - (3) 1 74 123 Gross profit (loss) 1 - - - 32 29 Selling, general and administrative expenses - - (1) (1) - - Inter-company operations 1 - (1) (1) 32 29 2 - (2) 2 42 94 Operating profit (loss) for segments (7) - Amortization of the excess cost arising from acquisition of investees 35 94 Operating profit (loss) (20) (17) Finance income (expenses), net - 1 Share in losses of investees, net of tax 15 78 Profit (loss) before taxes on income 10 22 Tax benefits (income tax) 25 100 Net profit (loss) for the period

Company Contact: Rony Solonicof Chief Economist and Head of IR Tel. +972-4-878-8320 Contact IREn@orl.co.il Investor Relations Contact: Ehud Helft / Porat Saar CCG Israel Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687 info@ccgisrael.com

SOURCE: Oil Refineries Ltd

CONTACT: Company Contact: Rony Solonicof, Chief Economist and Head of IR,Tel. +972-4-878-8320, Contact IREn@orl.co.il; Investor Relations Contact:Ehud Helft / Porat Saar, CCG Israel, Tel. (US) +1-646-233-2161 / (Int.)+972-52-776-3687, info@ccgisrael.com