Ormat Technologies Inc. Signs Power Purchase Agreement With Puget Sound Energy for Supply of Power From Recovered Energy Generat

SPARKS, Nev., Jan. 25  /PRNewswire-FirstCall/ -- Ormat Technologies (NYSE: ORA), announced today that its wholly owned subsidiary, Orsumas, LLC has entered into a 20-year power purchase agreement with Puget Sound Energy Inc. for the supply of power from a Recovered Energy Generation System (REGS), which will be located adjacent to the Sumas Compressor Station of Northwest Pipeline Inc. (NWP) in Sumas, Washington State.  The facility is expected to begin commercial operations in the last quarter of 2007 or the first quarter of 2008, and is expected to generate annual revenues of approximately $2.3 million with a 1% annual escalation.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGO )

The REGS will be owned by Orsumas and will use recovered waste heat from three NWP existing gas turbines driving compressors at the station, as well as interconnect to Puget Sound Energy's transmission grid.  The facility will employ an ORMAT (R) Energy Converter (OEC) and will have a design capacity of 4.95 MW net.  On November 15, 2005, Ormat signed a 20-year Host Agreement with NWP to site the REGS and utilize waste heat from the station.

The OEC is a closed loop Organic Rankine Cycle based power conversion technology, which converts recovered heat into electric power without the need for any additional fuel or water. The ORMAT Recovered Energy Generation System provides power with minimal environmental impact.

Dita Bronicki, Chief Executive of Ormat Technologies, said, "This project brings the total capacity of Ormat-owned REGS under construction to 27 MWs of distributed power that is emission free and does not require additional fuel, producing reliable energy when needed.  Recovered energy is not only good for the environment, it is also a very cost-effective way to develop additional generating capacity and contribute to a plant's energy efficiency."

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's Form 10-K/A filed with the Securities and Exchange Commission on April 12, 2005 and Form S-3 filed with the Securities and Exchange Commission on January 17, 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                           Jeff Corbin/Todd Fromer
  CEO and President                       KCSA Worldwide
  [phone]                         212-896-1214/212-896-1215
                       /

http://www.newscom.com/cgi-bin/prnh/20040422/LATH066LOGODATASOURCE: Ormat Technologies Inc.



CONTACT:  Dita Bronicki, CEO and President, Ormat Technologies,

[phone], ; Jeff Corbin, [phone],

, or Todd Fromer, [phone], , both of

KCSA Worldwide, for Ormat Technologies Inc.



Web site:  http://www.ormat.com/ 

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