Debt Structure Created for ORMAT Nevada Using $190M 144A Note Offering; Funds for Refinancing, Acquisitions of Geothermal Projects

2/27/2004

From: Tom White of Marathon Capital, LLC, 847-405-0610 or twhite@marathon-cap.com

SPARKS, Nevada, Feb. 27 -- ORMAT Funding Corp (Ormat), a subsidiary of ORMAT Nevada Inc., announced today that it closed a $190 million issue of senior secured notes. The private placement offering is at 8.25 percent over 17 years under Rule 144A and Regulation S of the Securities Act of 1933. Proceeds from the bond issue will be used for the acquisition of operating geothermal power plants, to refinance certain previously owned geothermal power plants and to fund enhancement projects at two power plant facilities in the United States.

Marathon Capital Markets, Inc., a subsidiary of Marathon Capital, LLC, acted as exclusive financial advisor to Ormat. Lehman Brothers was the sole book running manager of the bond offering.

Ormat and Marathon Capital, LLC have recently worked together to secure Ormat's $214 million acquisition of three geothermal power plants in California and $154 million in related term financing.

ORMAT Nevada Inc., headquartered in Sparks Nevada, is a subsidiary of Ormat Industries (TASE:ORMT) based in Israel. ORMAT Nevada Inc. has nearly 40 years of experience in designing and providing innovative power technology and equipment, with 800 MW of geothermal and heat recovery power plants in more than 17 countries. It is committed to supplying clean, sustainable power.

Marathon Capital, LLC is a rapidly growing advisory services firm focused on delivering financial services and products to the power production and energy conservation markets. Among Marathon's clients are deregulated subsidiaries of large utilities, independent power producers and entrepreneurial companies focused on developing power generation facilities. Marathon is headquartered in Bannockburn, Ill., with a subsidiary office in New York.

Lehman Brothers (NYSE:LEH) serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private equity, and private client services. The firm is headquartered in New York, London, and Tokyo and operates in a network of offices around the world.