Reykjavik Energy Invest and Pertamina Geothermal Energy Announce Intention to Develop New Geothermal Power Plants in Indonesia

REYKJAVIK, ICELAND--(Marketwire - September 13, 2007) - Reykjavik Energy Invest (REI) and Pertamina Geothermal Energy (PGE) today entered into a Memorandum of Understanding (MoU) regarding the development of PGE's geothermal areas in Indonesia.

The first step towards the agreement took place during the Geothermal Congress 2005 in Antalya, Turkey, when the Government of Iceland and the Government of Indonesia signed a Memorandum of Understanding to collaborate in the field of geothermal energy.

Reykjavik Energy Invest today hosted a conference on common sustainable energy interests and the use of Icelandic geothermal technologies in Indonesia. Visitors included HE Dr. Purnomo Yusgiantoro, minister of Energy & Mineral Resources in Indonesia, HE Ossur Skarphedinsson, minister of Industry in Iceland, as well as leading geothermal scientists from Iceland and Indonesia. The agreement was signed during the conference.

Comments:

HE Dr. Purnomo Yusgiantoro - Minister of Energy & Mineral Resources in Indonesia:

"We are pleased about today's signing of the agreement between Reykjavik Energy Invest and Pertamina Geothermal Energy. The agreement is not only a commercial contract, but also an important step towards increased relations between the people of Indonesia and the people of Iceland, which I think is beneficial for both nations."

HE Dr Ossur Skarphedinsson - Minister of Industry in Iceland:

"Iceland and Indonesia are both located on active geological areas, where the world's tectonic plates meet. Sharing such similarities, which shape people and societies, makes our countries ideal business partners. I am pleased to see this contract materialize and happy to see opportunities for Icelandic technology in Indonesia."

Bombang Kustono, President Director PGE:

"Pertamina Geothermal Energy is a leading geothermal energy company in Asia. At the conference today we had the pleasure to discuss common sustainable energy interests and the use of Icelandic geothermal technologies in Indonesia. The contract with REI will enable us to accelerate our plan to increase the share of geothermal power in Indonesia."

Gudmundur Thoroddsson, CEO REI:

"This agreement is a sign of the trust that nations in various parts of the world put in our experience and know-how in harnessing renewable energy sources. Growing the relationship with Pertamina is one of Reykjavik Energy Invest's most important tasks. Indonesia possesses the world's largest geothermal resources and it is both humbling and challenging to get the opportunity to work with Pertamina in tapping into this eco-friendly energy source. Our experience in recent large-scale geothermal developments in Iceland makes us confident we will be successful in developing our relationship with Pertamina."

About Reykjavik Energy Invest

Reykjavik Energy Invest (REI) (www.reykjavikenergy.com) is the Reykjavik Energy (Orkuveita Reykjavikur) international business development and investment arm. REI brings Reykjavik Energy's expertise to its partners and investments by focusing on creating partnerships to develop geothermal areas. REI invests in geothermal exploitation rights as well as site development, construction and operation of geothermal fields, and seeks to acquire geothermal plants currently in operation. Reykjavik Energy is the world's leading authority in the utilization of geothermal energy. The company has consolidated its leadership over the past 60 years by supplying a large portion of the Icelandic population with geothermal water for domestic heating and by gradually developing new steam fields for power production.

About Pertamina Geothermal Energy

Pertamina Geothermal Energy (www.pertamina.com) is the subsidiary of Indonesia's state oil company Pertamina and possesses multiple geothermal areas. Indonesia is the world's richest country of geothermal resources. Pertamina's scope of business incorporates the upstream and downstream sectors. The upstream sector covers oil, gas and geothermal energy exploration and production, both domestically and overseas. The foregoing is pursued through its own operations and through partnerships in the form of joint operations with JOBs (Joint Operating Bodies), TACs (Technical Assistance Contracts) and JOCs (Joint Operating Contracts). The downstream sector includes processing, marketing, trading and shipping. Commodities produced range from fuel (BBM) and non-fuel (non-BBM), LPG, LNG, petrochemicals to lube-base oil.

Contact Information: For further information, please contact: REI Chairman: Bjarni Armannsson phone +354-516-7707 REI CEO: Gudmundur Thoroddsson phone +354-516-7707 International Inquiries: Gudmundur F Sigurjonsson Mobile: +354-849-4960 from the U.S. phone 011-354-849-4960 E-mail Icelandic Inquiries: Eirikur Hjalmarsson Mobile: +354-617-7717 E-mail