Currently 3 Dolphin submarines are in service in the world, all with the Israeli Navy. The first was built in 1998 (INS Dolphin) and the second in 1999 (INS Leviatan). Both of these were made in Germany and given to the Navy. A third one was made in 2000 (INS Tekuma), and there's still two more that the Navy want. They needed to replace the old British submarines from the 1970s that the Navy was using.
I think that one of them stays in the Mediterranean, and one is always in the Red Sea, but it's mostly kept secret where they are.
http://bit.ly/j0yMBI here's a pic
That's true what you say, from Independence up to the 1970s a lot of Israeli weapons was imported, but now has become one of the biggest exporters of equipment.