Derivative Case :Yuval Ran v. Haim Tsuff, et al, In the 295th Judicial District Court for Harris County

Legal Proceedings
	A derivative case styled “Cause No. 2010-21777; Yuval Ran v. Haim Tsuff, et al., In the 295th Judicial District Court for Harris County, Texas was filed on April 10, 2010.  The case has not yet been served on any defendant.  However, the case has been consolidated with the pending derivative cases (previously disclosed), which are now styled “Lead Cause No. 2009-34535; In Re Isramco, Inc. Shareholder Derivative Litigation; In the 55th Judicial District Court of Harris County, Texas.  All claims are scheduled for non-binding mediation on October 6, 2010.  The suit claims damages and alleges that various breaches of fiduciary duty, self dealing and other wrongdoing occurred, primarily on the part of Haim Tsuff and Jackob Maimon, in connection with the sale of the Company’s interest in various foreign assets. The Company believes the suit to be without merit and the Company and the other defendants intend to vigorously defend the lawsuit.   Another derivative case was filed on July 7, 2010, styled “Case # 5612; Yuval Lapiner, Derivatively and on behalf of Isramco, Inc. v. Haim Tsuff, Jackob Maimon, Max Pridgeon, Michelle R. Cinnamon Flores, Marc E. Kalton, Frans Sluiter, I.O.C. -- Israel Oil Company, Ltd., Naphtha Israel Petroleum Corporation, Ltd., J.O.E.L. -- Jerusalem Oil Exploration, Ltd., Chesny Estates, Ltd., And Goodrich Global, Ltd.,.  This case was filed in the Delaware Chancery Court in Wilmington, DE. The claims asserted in this case are essentially the same damage claims as asserted in the Yuval Ran case, described above.  On July 27, 2010 the Company filed motions in the Chancery Court to Dismiss or Stay the lawsuit and is awaiting a ruling on such motions to determine whether the Delaware suit will be allowed to go forward. The Company believes the suit to be without merit and the Company and the other defendants intend to vigorously defend the lawsuit.