ORA Ormat Technologies Inc

RENO, Nevada, Jan. 16 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. (NYSE:ORA) today announced that it entered into a Power Purchase Option Agreement with Basin Electric Power Cooperative (Basin Electric) regarding five new Recovered Energy Generation (REG) Power Plants along the Northern Border Pipeline in the states of Montana, North Dakota and Minnesota. These new REG power plants are in addition to the existing four facilities in North and South Dakota that have been in commercial operation since autumn 2006. (Logo: http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO ) According to the Option Agreement, Basin Electric will work towards fulfilling certain conditions with the goal to confirm that it is ready to enter into a definitive 25-year Power Purchase Agreement. These conditions include the interconnection and rights to the site on which the power plants will be constructed. The Power Purchase Agreements will be similar to the existing power purchase agreement between Basin Electric and Ormat relating to the four 22 MW (total) existing OREG 1 power plants. Ormat has already secured the rights to the waste heat for two of the new power plants and will continue to work towards obtaining the rights to the remaining three new power plants. The release for construction of the new power plants is expected during 2007 once each of the parties has fulfilled its conditions under the Power Purchase Option Agreement. "We have found Ormat to be the kind of reliable partner we want to do business with," said Ron Rebenitsch, Basin Electric Manager of Member Marketing. "Ormat made commitments to us and met those commitments. We are very pleased with the existing projects and look forward to doing more projects." Dita Bronicki, Chief Executive Officer of Ormat stated; "We are very pleased with Basin Electric's decision to expand its partnership with Ormat by entering into this new agreement. If completed in full, a total of 27.5 MWs of electricity from the new power plants will be sold to Basin Electric under a long-term power purchase agreement that we expect will add up to approximately $8 million in yearly revenues to our electricity segment and increase Ormat's portfolio of owned and operated REG projects to approximately 50-55 MWs." "Ormat's proprietary Organic Rankine Cycle technology will be used to generate base load, clean power from waste exhaust heat that would otherwise go unused," Ms. Bronicki concluded. 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. Ormat is a pioneer in Organic Rankine Cycle (ORC) technology and a leader in the manufacture of ORC power equipment. It also designs, develops and builds, and owns and operates, 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 operates the following geothermal power plants: in the United States -- Brady, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria; and in Nicaragua -- Momotombo. In the U.S., Ormat owns and operates four OREG1 Recovered Energy Generation plants. 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 Prospectus Supplements filed with the Securities and Exchange Commission on April 5 and December 14, 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. Ormat Technologies Contact: Investor Relations Contact: Dita Bronicki Todd Fromer / Marybeth Csaby CEO and President KCSA Worldwide +1-775-356-9029 +212-896-1215 / 212-896-1236 / http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGODATASOURCE: Ormat Technologies, Inc. CONTACT: Dita Bronicki, CEO and President, Ormat Technologies, +1-775- 356-9029, ; or Investor, Todd Fromer, +212-896-1215, ; or Marybeth Csaby, 212-896-1236, , both of KCSA Worldwide Web site: http://www.ormat.com/

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