As of March 31, 2007, the Company had cash, cash equivalents and marketable securities of $74.7 million compared to $116.7 million as of December 31, 2006. The decrease is mainly attributable to the combination of the funding of capital expenditures and the repayment of long-term debt to the parent company, Ormat Industries Ltd., and to third parties.

On May 8, 2007, Ormat’s Board of Directors approved the payment of a quarterly cash dividend of $0.05 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 May 29, 2007 to shareholders of record as of the close of business on May 22, 2007. The Company expects to pay a dividend of $0.05 per share in the next two quarters as well.

‘‘Our organic growth plan is proceeding substantially as scheduled and we have added from the beginning of the year approximately 24 MW. We made several advancements within our Recovered Energy Generation (REG) business, as we continue to see demand for this technology increase,’’ Ms. Bronicki commented. ‘‘In addition to the power purchase option agreement we signed at the beginning of the year with Basin Electric relating to an additional five REG power plants, we have entered into contracts to supply two REG plants to Enpower Green Energy Generation, as well as a contract with ENAGAS, S.A. of Madrid for the supply of one REG plant in an LNG (Liquefied Natural Gas) terminal, a new and promising application for our REG units. Recovered Energy Generation is an exciting new business for us, one that we will continue to grow through both our Products and Electricity Segments.’’

Commenting on the outlook for 2007, Ms. Bronicki said: ‘‘following our first quarter earning results, we expect our 2007 Electricity Segment revenue to decrease by $6 million to approximately $214 million based on today’s oil prices. We also expect $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 2007 revenue will be in line with the previously given guidance, of between $65 million and $72 million’’

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 Wednesday, May 9, 2007. 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 8695981.

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 approximately 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

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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 12, 2007.

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. The way we calculate EBITDA and adjusted EBITDA may be different from the way other companies calculate these non-GAAP financial measures. 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 month periods ended March 31, 2007 and 2006
(Unaudited)

			Three Months Ended March 31,
			2007						2006
			(in thousands, except per share amounts)
Revenues:
Electricity				$	43,658					$	43,733
Products					18,089						16,588
Total revenues					61,747						60,321
Cost of revenues:
Electricity					39,722						26,867
Products					15,924						10,532
Total cost of revenues					55,646						37,399
Gross margin					6,101						22,922
Operating expenses:
Research and development expenses					704						773
Selling and marketing expenses					1,986						2,695
General and administrative expenses					5,747						4,684
Operating income (loss)					(2,336	)					14,770
Other income (expense):
Interest income					1,415						1,115
Interest expense					(7,782	)					(7,453	)
Foreign currency translation and transaction losses					(716	)					(8	)
Other non-operating income					352						103
Income (loss) before income taxes and equity in income of investees					(9,067	)					8,527
Income tax benefit (provision)					1,995						(1,914	)
Equity in income of investees					1,231						1,279
Net income (loss)				$	(5,841	)				$	7,892
Earnings (loss) per share – basic and diluted				$	(0.15	)				$	0.25
Weighted average number of shares used in computation of earnings (loss) per share:
Basic					38,109						31,563
Diluted					38,109						31,697

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Ormat Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2007 and December 31, 2006
(Unaudited)

			March 31, 2007						December 31, 2006
			(in thousands)
Assets
Current assets:
Cash and cash equivalents				$	22,244					$	20,254
Marketable securities					52,434						96,486
Restricted cash, cash equivalents and marketable securities					49,274						56,425
Receivables:
Trade					33,682						36,463
Related entities					906						879
Other					7,520						5,277
Due from Parent					1,067						1,459
Inventories, net					8,572						7,403
Costs and estimated earnings in excess of billings on uncompleted contracts					14,082						11,216
Deferred income taxes					2,047						1,819
Prepaid expenses and other					4,795						4,911
					196,623						242,592
Unconsolidated investments					37,749						37,207
Deposits and other					15,058						15,081
Deferred income taxes					5,700						6,172
Property, plant and equipment, net					648,299						624,089
Construction-in-process					170,339						169,075
Deferred financing and lease costs, net					15,430						15,800
Intangible assets, net					49,319						50,086
Total assets				$	1,138,517					$	1,160,102
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses				$	79,399					$	70,445
Billings in excess of costs and estimated earnings on uncompleted contracts					9,537						5,803
Current portion of long-term debt:
Limited and non-recourse					8,632						8,482
Full recourse					1,000						1,000
Senior secured notes (non-recourse)					25,329						40,054
Due to Parent, including current portion of notes payable to Parent					82,854						82,379
Total current liabilities					206,751						208,163
Long-term debt, net of current portion:
Limited and non-recourse					19,940						22,157
Full recourse					1,000						1,000
Senior secured notes (non-recourse)					299,316						299,316
Notes payable to Parent, net of current portion					50,827						57,841
Deferred lease income					78,212						78,883
Deferred income taxes					15,385						21,674
Liability for unrecognized tax benefits					3,474						—
Liabilities for severance pay					13,667						13,378
Asset retirement obligation					17,117						16,832
Total liabilities					705,689						719,244
Minority interest in net assets of a subsidiary					64						64
Stockholders’ equity:
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 38,121,432 and 38,101,888 shares issued and outstanding, respectively					38						38
Additional paid-in capital					354,260						353,399
Retained earnings					76,211						85,053
Accumulated other comprehensive income					2,255						2,304
Total stockholders’ equity					432,764						440,794
Total liabilities and stockholders’ equity				$	1,138,517					$	1,160,102

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Ormat Technologies, Inc. and Subsidiaries
Reconciliation of adjusted EBITDA
(Unaudited)

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA to include operating income, depreciation and amortization of our equity investments in the Mammoth and Leyte Projects. 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. 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. The following table reconciles net income to EBITDA and adjusted EBITDA, for the three-month periods ended March 31, 2007 and 2006:

			Three Months Ended March 31,
			2007						2006
			(in thousands)
Net income (loss)				$	(5,841	)				$	7,892
Adjusted for:
Equity in income of investees					(1,231	)					(1,279	)
Interest expense, net (including amortization of deferred financing costs)					6,367						6,338
Other non-operating expense (income)					364						(95	)
Income tax provision (benefit)					(1,995	)					1,914
Depreciation and amortization					11,560						9,559
EBITDA					9,224						24,329
Equity in income of Mammoth-Pacific L.P. and Ormat Leyte					1,231						1,553
Depreciation, amortization, interest and taxes attributable to the Company’s equity in Mammoth-Pacific L.P. and Ormat Leyte					2,904						2,588
Adjusted EBITDA				$	13,359					$	28,470

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