Ormat Technologies, Inc. Announces Partnership Transaction Of Eight Geothermal Power Plants Valued At Up To $44.4 Million

Ormat Technologies, Inc. Announces Partnership Transaction Of Eight Geothermal
                  Power Plants Valued At Up To $44.4 Million

PR Newswire

RENO, Nev., Jan. 28, 2013

RENO, Nev., Jan. 28, 2013 /PRNewswire/ --Ormat Technologies, Inc. (NYSE: ORA)
announced today that Ormat Nevada Inc., a wholly-owned subsidiary (Ormat
Nevada), and JPM Capital Corporation (JPM) entered into a tax equity
partnership transaction involving eight geothermal power plants in California
and Nevada. 

(Logo: http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)

Under the transaction, Ormat Nevada transferred the plants into a new
subsidiary, ORTP, LLC (ORTP), and sold an interest in the limited liability
company to JPM. In connection with the closing, JPM paid approximately $35.7
million to Ormat Nevada and will make additional payments estimated by Ormat
at approximately 25% of the value of production tax credits generated by the
portfolio over time. The additional payments are expected to be made until
December 31, 2016 and total approximately $8.7 million.

Certain consents to facilitate the transaction were obtained from the holders
of the senior secured notes issued by Ormat Nevada's subsidiaries, Orcal
Geothermal and Ormat Funding, which are the intermediate holding entities of
the eight geothermal power plants included in ORTP. Ormat Nevada will continue
to operate and maintain the power plants.

"Our partnership with JPM, began in early 2011 when they invested in our OPC
portfolio. Their decision to participate in a second transaction is a
demonstration of their confidence in Ormat and its management," said Dita
Bronicki, chief executive officer of Ormat. "This transaction will enable us
to maximize the use of our available production tax credits and accelerated
depreciation that we would not have otherwise been able to utilize either at
all or for a long time due to the fact that as a growth company we generate
more deductions for tax purpose than we are currently able to utilize. We
would like to thank JPM for their continued confidence and look forward to
continuing to take advantage of similar transactions when they are
appropriate. Going forward, we will continue to take steps to ensure that we
maximize the use of our assets to drive value for shareholders."

RLR Consultants advised Ormat Nevada on the structuring and placing of the
transaction, and Chadbourne & Parke LLP represented Ormat Nevada as
transaction counsel.

About Ormat Technologies
Ormat Technologies, Inc. is a leading geothermal company and the only
vertically-integrated company in the geothermal and recovered energy power
business. The company designs, develops, owns and operates geothermal and
recovered energy-based power plants around the world. Additionally, the
company designs, manufactures and sells geothermal and recovered energy power
units and other power-generating equipment, and provides related services. The
company has more than four decades of experience in the development of
environmentally-sound power, primarily in geothermal and recovered-energy
generation. Ormat products and systems are covered by 82 U.S. patents. Ormat
has engineered and built power plants that it currently owns or has supplied
to utilities and developers worldwide, totaling over 1,500 MW of gross
capacity. Ormat's current generating portfolio includes the following
geothermal and recovered energy-based power plants: in the United States -
Brady, Brawley, Heber, Jersey Valley, Mammoth, McGinness Hills, Ormesa, Puna,
Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3, and OREG 4; in Guatemala - Zunil
and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.

Ormat's 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 February 29, 2012 and Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on November 8, 2012. 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/ Rob Fink
CEO                         KCSA Strategic Communications
775-356-9029                212-896-1215 (Todd) /212-896-1206 (Rob)
dbronicki@ormat.com         tfromer@kcsa.com /rfink@kcsa.com



SOURCE Ormat Technologies, Inc.

Website: http://www.ormat.com
 
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