Holly Energy Partners Declares Distribution DALLAS, TX-- Holly Energy Partners, L.P. (NYSE:HEP) today announced declaration of its cash distribution, for the fourth quarter of 2008, of $0.765 per unit. For the prior quarter, $0.755 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 February 13, 2009, to unit holders of record February 5, 2009.

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.

FOR FURTHER INFORMATION, Contact:

Bruce Shaw, Senior Vice President & Chief Financial Officer

M. Neale Hickerson, Vice President, Investor Relations

Holly Energy Partners

214/871-3555