ORA Ormat Technologies Inc

RENO, Nev., May 2 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE:ORA) today announced that an Ormat subsidiary signed an agreement to purchase from CDC Group plc., a 14.09% partnership interest (13.67% on a fully diluted basis) in Orzunil I de Electricidad, Limitada (Orzunil), which owns the Zunil Geothermal Project in Guatemala. CDC Group's investment in this project has been managed by Globeleq, an emerging markets power company. (Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO ) Upon the consummation of this acquisition, Ormat's partnership interest in the Zunil Project will increase from 71.82% to 85.91% (83.34% on a fully diluted basis). The purchase price agreed upon by the parties is $3,250,000. The acquisition is expected to close by the end of the second quarter of 2006, and is subject to the approval of Orzunil members, including the International Finance Corporation (IFC), one of the project's senior lenders. As a result of this acquisition, Ormat's annual net income from the Zunil project is expected to increase by approximately $0.6 million on a full year basis. Taking into account the previous acquisition of 50.8%, which was completed on March 12, 2006, Ormat's annual net income from the said project is expected to increase by an aggregate amount of approximately $2.5 million on a full year basis. The power plant has recently returned to full operation following the completion of repair work to correct damage to piping and the surrounding areas, which was caused by hurricane activity in October 2005. About Ormat Technologies Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants. It also designs, develops and builds, and plans to own and operate, recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by more than 70 patents. Ormat currently has operations in the United States, Israel, the Philippines, Guatemala, Kenya, and Nicaragua. Safe Harbor Statement Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2006 and the Final Prospectus filed with the Securities and Exchange Commission on April 5, 2006. These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO http://photoarchive.ap.org/ DATASOURCE: Ormat Technologies, Inc. CONTACT: Dita Bronicki, CEO and President, Ormat Technologies, Inc., +1-775-356-9029, ; or Jeff Corbin, +1-212-896-1214, , or Todd Fromer, +1-212-896-1215, , both of KCSA Worldwide for Ormat Technologies, Inc. Web site: http://www.ormat.com/

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