Ecofin Partners With Solel Solar Systems

LONDON, January 28 /PRNewswire/ -- Ecofin Limited ("Ecofin"), a London based investment manager specialising in the utilities and infrastructure sectors with approximately $5,400 million of assets under management, is pleased to announce a major new investment in Solel Solar Systems Limited ("Solel").

Ecofin, on behalf of its funds and certain co-investors, has invested $105 million in shares of Solel through a combination of subscription for new equity and secondary share purchases. Solel will be undertaking an additional round of capital raising, following which Ecofin will hold a very significant minority stake in the company.

Solel specialises in the design, manufacture and installation of solar fields and critical solar field components for large scale power generation. Solel is the world's largest solar thermal company with over 20 years experience in the sector. It specialises in the commercially proven technology - parabolic troughs which have been operational since 1985 in the Mojave Desert. These nine solar energy generating system ("SEGS") plants produce 354MW of clean, renewable electricity per annum using Solel equipment and technology. They supply the needs of half a million consumers and eliminate the need for 2 million barrels of oil a year.

Solel is currently in the process of constructing 150MW of solar thermal plants in Spain. Research and development carried out by Solel's team of engineers has improved the output of the solar thermal field by more than 40% compared to the original SEGS plants. In addition, Solel has signed a power purchase agreement with the Pacific Gas & Electric company to supply a solar thermal power field of 553MW in California and is in discussions with a number of other utilities about similar projects.

Solel employs approximately 300 staff and its headquarters and R&D centre are based in Bet Shemesh, Israel. It has subsidiary offices in Spain and the United States.

Commenting on the transaction, Bernard Lambilliotte, Ecofin's Chief Investment Officer said:

"We are delighted to make this investment in Solel and look forward to supporting the company through a period of rapid growth. The use of parabolic troughs in the creation of solar thermal power plants represents a real opportunity to develop a utility scale solution to renewable energy. Solel has the longest track record in this industry, having built the original SEGS plants, and we fully support the entrepreneurial approach to reducing the cost of solar thermal power followed by their CEO Avi Brenmiller and his team."

Avi Brenmiller, CEO of Solel also commented:

"We are very pleased to welcome Ecofin as a long term shareholder and also onto the Board of Solel. We look forward to leveraging Ecofin's specialist utility and financial skills to continue the development of the Company. Ecofin has a strong track record of successful investment in the
renewable sector and we welcome its experience and input on how best to achieve Solel's goals."

About Ecofin

Ecofin is an investment and advisory firm, founded in 1992, which specialises in the global utility and infrastructure industries. The firm is based in London and provides discretionary fund management services and advice to institutional and corporate clients.

Ecofin is an independent firm owned by its principals and private investors. The firm's principal operating company, Ecofin Limited, is an English company which has offices in London and New York. Ecofin is authorised and regulated by the U.K. Financial Services Authority and is
also SEC registered. EFM Limited is an associated company based in Jersey, with offices in Geneva and Hong Kong. Further information on Ecofin can be found in its web site http://www.ecofin.co.uk.

Solel Solar Systems To Expand Manufacturing

BEIT SHEMESH, Israel--(BUSINESS WIRE)--Solel Solar Systems, Ltd. ("Solel"), the global leader in solar thermal technology for central power plants, announced today that it is commencing a massive increase in its manufacturing capacity. The new facility, in which the company will invest $25 million, comes in response to significant increases in orders for Solel's renewable, clean solar energy systems and recent agreements by Solel to build solar thermal power plants in Spain.

The new facility, to be built near Solel's Beit Shemesh, Israel headquarters, will triple Solel's capacity for manufacturing its patented solar thermal receiver systems. These advanced receivers, the heart of the solar power plant, offer market-leading thermal efficiencies and increased annual electrical outputs, and will be employed by Solel in power plants currently under development. In addition, in 2006-2007 Solel has received orders for over 100,000 receivers from power plant operators and developers in the United States and Spain, including orders for 10,000 receivers from the developers of Nevada Solar One, the solar thermal power plant scheduled to go on-line sometime this year.

"Based on the very substantial growth in awareness of the benefits of solar thermal power, we see our investment in plant capacity as both necessary and economic," said Avi Brenmiller, CEO of Solel. "Our solar thermal technology is commercially proven and competitively priced, and offers tremendous opportunities for reducing carbon emissions and reliance on fossil fuels."

About Solel Solar Systems Ltd.

Solel is the world leader in solar thermal technology for solar systems and central power plants for clean electricity. Its unrivalled solutions have set the global standard for utility solar plants as well as high temperature collectors. The Solel parabolic trough thermal technology has proven itself in California's Mojave Desert with the continuous production of 354 MW of utility scale power, helping California consumers reduce their annual oil consumption by two million barrels. In addition, Solel is building solar thermal power plants in Spain in a joint venture with Sacyr-Vallehermoso, and is providing the key technology for new solar power plants currently under construction in the U.S. and in Spain. Solel's headquarters, manufacturing plant and R&D center are in Beit Shemesh, Israel, and it operates in the U.S. through its subsidiary, Solel, Inc.

For more information please visit: www.solel.com

Solel to Build Spanish Solar Power Plants

Israeli company Solel Solar Systems, which supplies solar systems and power plants for clean energy production, announced today a collaboration agreement with Spanish infrastructures company Sacyr Vallehermoso for the construction of three solar power stations in Spain for a total output of 150 megawatts, and at a total investment of $890 million. Solar's share in the contract is valued at half a billion dollars over the next two years (2006-2008).

Solar develops and manufactures solar systems which function on unique technology which enables thermo-solar energy conduction at high temperatures of up to 400° Celsius, and its conversion into clean electricity. The company was founded on the remnants of Luz. Its R&D center is located in Beit Shemesh. To date, nine commercial power plants based on Solel's technology have been built. They are located in California and produce electricity for half a million people. The company also supplied technology to two other power stations, and solar systems for heating and air-conditioning in other countries.