RENO, Nev., June 25 /PRNewswire-FirstCall/ -- Ormat Technologies, Inc. today announced that an Ormat subsidiary signed an agreement to purchase from International Finance Corporation 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.
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Upon the consummation of this acquisition and the CDC acquisition previously announced in a press release dated May 2, 2006, Ormat will become the sole owner of the Zunil Project. The purchase price agreed upon by the parties is $3,250,000. The acquisition is expected to close by the end of the third quarter of 2006 contemporaneously with the closing of the acquisition from CDC.
Ormat's annual net income from the Zunil Project as a result of this acquisition is expected to increase by approximately $0.6 million on a full- year basis.
Taking into account the previous acquisition of a 50.8% ownership interest in the Project, which was completed on March 12, 2006, and the 14.09% acquisition which was announced on May 2, 2006, Ormat's annual net income from the said Project is expected to increase by an aggregate amount of approximately $3.1 million on a full-year basis.
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 operates the following geothermal power plants: in the United States - Brady, Desert Peak, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines - Leyte; in Guatemala - Zunil; in Kenya - Olkaria; and in Nicaragua - Momotombo.
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 Supplement 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.
Ormat Technologies Contact: Investor Relations Contact:
Dita Bronicki Jeff Corbin/Todd Fromer
CEO and President KCSA Worldwide
775-356-9029 212-896-1214/212-896-1215
