Holly Corporation Purchases West Texas Crude Oil Gathering Systems

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9/1/1998
Dallas, Texas, September 9, 1998 -- Holly Corporation (AMEX "HOC") subsidiary Navajo Refining Company has recently purchased from Fina Oil and Chemical Company subsidiaries Fina Pipe Line Company and Fin-Tex Pipe Line Company certain crude oil gathering systems in Howard, Glasscock, Crane, Scurry, Mitchell, Borden and Ward Counties, Texas.

The assets purchased by Navajo include approximately 500 miles of pipelines and over 350,000 barrels of tankage. More than 27,000 barrels per day of crude oil is currently gathered on these systems. With the addition of these assets, Navajo Refining Company and Navajo Pipeline Company now operate over 1,600 miles of pipelines and gather over 60,000 barrels per day of crude oil by pipelines or trucks.

"Not only will these newly purchased assets enhance our position as a crude oil gatherer and purchaser in West Texas," said William J. Gray, Senior Vice-President of Holly Corporation and Navajo Refining Company, "but we expect them to generate a stable source of transportation service income. In addition, they will give Navajo Refining Company and Navajo Crude Oil Marketing Company the ability to purchase crude oil at the lease in new areas which will add to the stability of our refinery crude supply and help provide a stable market for independent operators in the Permian Basin."

Holly Corporation, through its affiliates, Navajo Refining Company and Montana Refining Company, is engaged in the refining of petroleum products.

FOR FURTHER INFORMATION,

Contact: Matthew P. Clifton, President
Henry A. Teichholz
Vice President, Treasurer
and Controller
Holly Corporation
214/871-3555

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