For the six months ended June 30, 2006, total revenues were $124.4 million, a 13.2% increase over total revenues of $109.9 million for the same period in 2005. Net income for the six months ended June 30, 2006 was $16.3 million or $0.49 per share of common stock compared to $8.0 million, or $0.25 per share for the same period of 2005. There were 33.5 million weighted average number of shares used in computation of diluted earnings per share in the first half of 2006 and 31.6 million shares during the same period in 2005.

For the six months ended June 30, 2006 the Company's gross margin was 37.4%, compared to 33.1% during the same period in 2005. Operating income for the six months ended June 30, 2006 was $30.2 million compared with $24.9 million for the same period in 2005.

Adjusted EBITDA for the six months ended June 30, 2006 was $57.5 million compared with $50.9 million for the same period in 2005. Adjusted EBITDA includes operating income, depreciation and amortization totaling $7.5 million and $8.9 million, for the six months ended June 30, 2006 and 2005, respectively, related to the Company's unconsolidated investment interests of 50% in the Mammoth project in California and 80% in the Leyte project in the Philippines. The reconciliation of GAAP net income to Adjusted EBITDA is set forth below in this release.

As of June 30, 2006, the Company had cash, cash equivalents and marketable securities of $108.6 million compared to $70.5 million as of December 31, 2005. The increase in the Company's cash position was principally due to the closing of the sale of 4,025,000 shares of common stock at $35.50 per share in a follow-on public offering (including the exercise of the underwriters' over-allotment option) in April 2006. This resulted in net proceeds of approximately $135.1 million, which the Company expects to use to pursue its corporate growth strategies. Additionally, Ormat utilized a portion of its cash position to fund capital expenditures in the amount of $80.0 million, investment in Orzunil of $15.4 million and repayment of long-term debt.

On August 6, 2006, Ormat's Board of Directors approved the payment of a quarterly cash dividend of $0.04 per share, pursuant to the Company's dividend policy, which targets an annual payout ratio of at least 20% of the Company's net income, subject to Board approval. The dividend will be paid on August 30, 2006 to shareholders of record as of the close of business on August 23, 2006. The Company expects to pay a dividend of $0.04 per share in the next quarter as well.

Commenting on second quarter results, Dita Bronicki, President and Chief Executive Officer of Ormat, said, ‘‘Ormat continued to position itself in the second quarter for future growth. Both our business segments generated increased revenues during the second quarter. We added $41 million from new orders to our product backlog, positioning Ormat for added growth in its products segment. In addition, by winning the tender for the 340 MW Sarulla project in Indonesia, expected to be the world's largest geothermal power project, we expect to secure significant revenues for our products segment for the period between 2008 and 2011 and we continue to demonstrate Ormat's leadership role in the global geothermal business.’’

Commenting on Ormat's progress in its newest business initiative, Mrs. Bronicki said, ‘‘We are particularly pleased with the results of our recovered energy power generation business in the first six months of 2006, having recognized revenues of approximately $9.2 million during this period compared to $0.6 million in the same period last year.’’

‘‘Ormat also announced that it signed two 20-year power purchase agreements with Sierra Pacific for up to 30 MW each of geothermal power. Both contracts stem from Sierra Pacific's outstanding request for proposal from last year, where Sierra evaluated not only geothermal, but also energy produced from wind, solar and other renewable sources.’’

Commenting on the outlook for 2006, Ms. Bronicki said, ‘‘We expect that our 2006 electricity segment revenues will be 1.0%-2.0% lower than our previously reported estimate of $204.0 million due to delays in the completion of some of our projects under construction. We also expect an additional $18 million of revenue from our share of electricity revenue generated by Mammoth and Leyte, which are accounted for under the equity method. With regard to our products segment, we currently expect that our 2006 revenue will be between $65 million and $70 million.’’

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Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 9:00 a.m. U.S. E.D.T. on Monday, August 7, 2006. The call will be available as a live, listen-only webcast at www.ormat.com . A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. To listen to a replay, please call 1-877-519-4471 in the United States and Canada and 1-973-341-3080 for international callers and utilize code 7610837.

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.

About non - GAAP financial measures

This press release includes a financial measure defined as a non-GAAP financial measure by the Securities and Exchange Commission: adjusted EBITDA. This measure may be different from non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management of Ormat Technologies, Inc. believes that adjusted EBITDA provides meaningful supplemental information that both management and investors benefit from in assessing Ormat Technologies' ability to service and/or incur debt.

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Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and six month periods ended June 30, 2006 and 2005
(Unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
			2006						2005						2006						2005
			(in thousands, except per share amounts)												(in thousands, except per share amounts)
Revenues:
Electricity:
Energy and capacity				$	28,857					$	25,457					$	54,022					$	49,966
Lease portion of energy and capacity					19,238						16,650						37,135						32,593
Lease income					672						287						1,343						287
Total electricity					48,767						42,394						92,500						82,846
Products					15,319						13,631						31,907						27,075
Total Revenues					64,086						56,025						124,407						109,921
Cost of revenues:
Electricity:
Energy and capacity					20,368						19,782						37,542						36,055
Lease portion of energy and capacity					9,258						7,394						17,640						14,733
Lease expense					1,310						615						2,621						615
Total electricity					30,936						27,791						57,803						51,403
Products					9,580						11,427						20,112						22,110
Total cost of revenues					40,516						39,218						77,915						73,513
Gross margin					23,570						16,807						46,492						36,408
Operating expenses:
Research and development expenses					890						714						1,663						1,094
Selling and marketing expenses					2,826						1,651						5,521						3,859
General and administrative expenses					4,404						2,975						9,088						6,602
Operating income					15,450						11,467						30,220						24,853
Other income (expense):
Interest income					2,347						1,075						3,462						1,885
Interest expense					(7,741	)					(9,502	)					(15,194	)					(19,800	)
Foreign currency translation and transaction gains (losses)					(69	)					39						(77	)					(44	)
Other non-operating income					204						72						307						112
Income before income taxes, minority interest, and equity in income of investees					10,191						3,151						18,718						7,006
Income tax provision					(2,156	)					(1,154	)					(4,070	)					(2,634	)
Minority interest in earnings of subsidiaries					(571	)					—						(571	)					—
Equity in income of investees					931						2,097						2,210						3,630
Net income				$	8,395					$	4,094					$	16,287					$	8,002
Earnings per share – basic and diluted				$	0.24					$	0.13					$	0.49					$	0.25
Weighted average number of shares used in computation of earnings per share:
Basic					35,105						31,563						33,343						31,563
Diluted					35,254						31,579						33,475						31,576

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Ormat Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2006 and December 31, 2005
(Unaudited)

			June 30 2006						December 31, 2005
			(in thousands)
Assets
Current assets:
Cash and cash equivalents				$	24,736					$	26,976
Marketable securities					83,823						43,560
Restricted cash, cash equivalents and marketable securities					36,126						36,732
Receivables:
Trade					36,879						33,515
Related entities					1,642						524
Other					2,620						2,629
Inventories, net					5,117						5,224
Costs and estimated earnings in excess of billings on uncompleted contracts					2,493						8,883
Deferred income taxes					4,246						1,663
Prepaid expenses and other					5,397						3,256
Total current assets					203,079						162,962
Unconsolidated investments					38,189						47,235
Deposits and other					14,386						13,489
Deferred income taxes					7,108						5,376
Property, plant and equipment, net					594,732						491,835
Construction-in-process					132,443						128,256
Deferred financing and lease costs, net					16,862						17,412
Intangible assets, net					46,505						47,915
Total assets				$	1,053,304					$	914,480
Liabilities and Stockholders' Equity
Current liabilities:
Short-term bank credit				$	—					$	3,996
Accounts payable and accrued expenses					44,008						50,048
Billings in excess of costs and estimated earnings on uncompleted contracts					9,827						12,657
Current portion of long-term debt:
Limited and non-recourse					8,503						2,888
Full recourse					1,000						1,000
Senior secured notes (non-recourse)					24,091						23,754
Due to Parent, including current portion of notes payable to Parent					31,181						32,003
Total current liabilities					118,610						126,346
Long-term debt, net of current portion:
Limited and non-recourse					26,560						11,252
Full recourse					1,000						2,000
Senior secured notes (non-recourse)					315,280						324,645
Notes payable to Parent, net of current portion					123,572						140,162
Other liabilities					—						1,309
Deferred lease income					80,226						81,569
Deferred income taxes					25,758						22,004
Liabilities for severance pay					12,668						11,409
Asset retirement obligation					12,578						11,461
Total liabilities					716,252						732,157
Minority interest in net assets of subsidiaries					5,373						64
Commitments and contingencies (Notes 5, 6 and 10)
Stockholders' equity:
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 35,587,496 and 31,562,496 shares issued and outstanding, respectively					35						31
Additional paid-in capital					259,545						124,008
Unearned stock-based compensation					—						(153	)
Retained earnings					69,741						55,824
Accumulated other comprehensive income					2,358						2,549
Total stockholders' equity					331,679						182,259
Total liabilities and stockholders' equity				$	1,053,304					$	914,480

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Ormat Technologies, Inc. and Subsidiaries
Reconciliation of adjusted EBITDA

EBITDA represents net income before interest, taxes, depreciation and amortization. Adjusted EBITDA includes operating income, depreciation and amortization of our equity investments in the Mammoth and Leyte projects. EBITDA and adjusted EBITDA are presented because we believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of a Company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do. EBITDA and adjusted EBITDA are not measurements of financial performance under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with accounting principles generally accepted in the United States of America. The following table reconciles net income to EBITDA and adjusted EBITDA, for the three and six month periods ended June 30, 2006 and 2005:

			Three Months Ended June 30,												Six Months Ended June 30,
			2006						2005						2006						2005
			(in thousands)												(in thousands)
Net income				$	8,395					$	4,094					$	16,287					$	8,002
Adjusted for:
Equity in income of investees					(931	)					(2,097	)					(2,210	)					(3,630	)
Minority interest in earnings of subsidiaries					571						—						571						—
Interest expense, net (including amortization of deferred financing costs)					5,463						8,388						11,809						17,959
Other non-operating income					(204	)					(72	)					(307	)					(112	)
Income tax provision					2,156						1,154						4,070						2,634
Depreciation and amortization					10,227						8,447						19,786						17,188
EBITDA					25,677						19,914						50,006						42,041
Equity in income of Mammoth-Pacific L.P. and Ormat Leyte					931						1,885						2,484						3,210
Depreciation, amortization, interest and taxes attributable to the Company's equity in Mammoth-Pacific L.P. and Ormat Leyte					2,461						3,016						5,049						5,684
Adjusted EBITDA				$	29,069					$	24,815					$	57,539					$	50,935

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