Increases quarterly distribution from $0.735 to $0.745 per unit



    DALLAS, July 25 /EMWNews/ -- Holly Energy Partners, L.P.

(NYSE: HEP) today announced declaration of its cash distribution, for the

second quarter of 2008, of $0.745 per unit. For the prior quarter, $0.735

was distributed to unit holders. Holly Energy has increased its

distribution to unitholders every quarter since becoming a public

partnership in July 2004. The distribution will be paid August 15, 2008, to

unit holders of record August 5, 2008.



    Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides

transportation and terminal services to the petroleum industry, including

Holly Corporation, which currently owns a 46% interest in the Partnership.

The Partnership owns and operates crude and product pipelines and terminals

located in Texas, New Mexico, Oklahoma, Arizona, Washington, Idaho and

Utah. In addition, the Partnership owns a 70% interest in Rio Grande

Pipeline Company, a transporter of LPGs from West Texas to Northern Mexico.