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OESI POWER REPORTS DEVELOPMENTS AT RYE PATCH AND PUNA PROJECTS

 PORTLAND, Ore., May 17 /PRNewswire/ -- OESI Power Corp. (NASDAQ: OESI) announced today that the lender on its Rye Patch project has notified the company that no further advances will be made on the construction loan for the project due to difficulties in locating sufficient geothermal resource. OESI also announced that the startup of its Puna project is progressing well and that the plant was supplying Hawaii Electric Co. ("HELCO") with a steady source of 20-25 megawatts of electricity.
 Rye Patch
 Rye Patch Limited Partnership ("RPLP"), a partnership in which the company has a 99-percent interest, and a subsidiary of General Electric Capital Corp. ("GECC") has a one-percent interest, has encountered difficulty in its resource drilling program and has not, as of the date of this report, found adequate geothermal resource required for operation at anticipated minimum capacities. GECC, the construction lender on the project, has asserted that it will make no further advances under the construction loan because construction delays have caused RPLP to fail to meet the conditions for such advances and that such construction delays constitute events of default under the loan agreement. GECC has also questioned its obligation to pay certain project expenses incurred to date.
 RPLP disputes GECC's position and will exercise all of its available rights, under the applicable financing agreements or otherwise, to recover all project expenses already incurred. Concurrently, RPLP intends to negotiate with GECC regarding alternatives for resolving the situation, which may involve a sale or other disposition of the project. However, if GECC should succeed in establishing the asserted defaults, the company would likely have to write-off its net investment in RPLP, which was approximately $3.5 million at March 31, 1993.
 Puna
 On April 20, 1993, Puna Geothermal Venture ("PGV"), which owns the 25-megawatt Puna project and in which the company has a 51-percent interest, received the permit to operate its KS-9 well and, two days later, began supplying energy to HELCO. Startup and testing activities progressed well and by April 29, 1993, the project was consistently generating 10 to 12 megawatts. By May 3, 1993, the output of the project reached 25 megawatts of gross electrical output and has continued to supply HELCO with 20-23 megawatts of electricity consistently since that date. Hydrogen sulfide emissions from the project have been minimal and within permitted levels. State and county regulators are continuing to monitor activities at the site.
 On May 7, 1993, PGV also successfully completed the final plug and abandonment of its KS-8 well. The well is permanently sealed, and the surface area has been restored to its original condition. Further, PGV has successfully completed a new production well, KS-10, which will be connected to the plant in the near future.
 In a separate press release issued today, the company announced first quarter 1993 results that showed improved revenues and operating earnings compared to the first quarter of 1992.
 OESI Power Corp. acquires, develops, operates and sells interests in geothermal power projects in the western United States, Alaska and Hawaii.
 -0- 5/17/93
 /CONTACT: James F. Verhey, vice president and chief financial officer of OESI Power, 503-636-9620/
 (OESI)


CO: OESI Power Corp.; General Electric Capital Corp. ST: Oregon IN: OIL SU:

GT-SG -- SF003 -- 8992 05/17/93 08:09 EDT
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Date:May 17, 1993
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