Extensive Geothermal Energy Resources at Raft River

"We are pleased with the initial drilling results which validate our current geologic model of the Raft River reservoir. Good progress is being made on construction due to the professional services provided by our contractors working on the plant and facilities," said Daniel Kunz, President and Chief Executive Officer of U.S. Geothermal.

"We are on schedule to begin commercial power generation in September 2007," he added.

Both wells have flowed at more than 1,000 gallons per minute, which demonstrates their physical connection to the geothermal reservoir. Injection tests are now under way to determine the capacity of these two deepened wells to accept the cooled fluid to be produced by the power plant. U.S. Geothermal's power plant and pipeline construction work continues on schedule.

Ormat Nevada Inc. has made progress on the manufacturing of plant components and initiated fieldwork on the power plant foundations; about 75 percent of the installation work is complete. Plus, a contract was signed with the Raft River Electric Coop for the construction of the upgraded three-mile transmission line.