07/25/2008 12:54 PM

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Interface, Ormat on Verge of Joining SB20 Core

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Ormat Technologies, Inc. (NYSE:ORA)

Reno, NV
Market Cap: $1.95 billion
P/E: 42.3
52 Week Low/High: $38-$57.93
Share Price: $46
Dividend Yield: 0.4%
www.ormat.com

Founded in 1965, Ormat is an Israeli-US company and the world leader in geothermal energy.

It designs, builds and owns geothermal plants and sells the electricity in geothermally active countries, primarily the U.S., Guatemala, Kenya, Nicaragua, the Philippines and Indonesia, but has over 800 megawatts (MW) of power in 21 countries. Its Kenya plant supplies a significant amount of the nation's electricity.

Ormat is the key partner in a consortium to develop geothermal energy in Indonesia, which is a global hotspot for geothermal.

It also designs, manufactures, and sells power units for geothermal plants, for recovered energy power generation, and for remote generators. Its power units are modular plants with a capacity of 200 kW to 130 MW; they use locally available heat sources such as geothermal, biomass, solar and recovered energy. It also sells the electricity for plants it constructs.

Recovered energy is one of Ormat's special strengths--it provides services to recover waste heat from energy intensive operations such as cement production and compressor stations along interstate pipelines--a cost-effective way to generate additional capacity efficiently.

This is not an easy business to enter, according to Progressive Investor--the technology and expertise are significant barriers to entry. Ormat, the only vertically integrated company in the field, is profitable and showing strong growth; it projects sales of $330 million for 2008.

The geothermal market is just taking off with boundless potential for Ormat. 2008 first quarter year over year revenues rose 12.4% to $69.4 million. The $10.1 million in net income is a substantial improvement--Ormat reported a net loss of $5.8 million for the first quarter 2007.

"Ormat is the best developer of geothermal power resources in the world--with the best team, technology, and track record," said Rafael Coven, an SB20 judge and Managing Partner of Cleantech Indices LLC.

More on the SB20 List

The 2008 SB20 List was selected with the assistance of judges Andrew Brengle, Senior Research Analyst, KLD Research & Analytics; Rafael Coven, Managing Partner, Cleantech Indices LLC; Matt Patsky, Managing Partner & Elizabeth Levy, Research Analyst, Winslow Green Growth Fund; Patrick McVeigh, President, Reynders, McVeigh Capital Management; and Ton Rennen, Senior Sustainability Analyst, Triodos Bank NV.

More information about companies on the SB20 List is available from Progressive Investor.

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