1172136--6/16/2008--US_GEOTHERMAL

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{capital, credit, financial}

{cost, contract, operation}

{gas, price, oil}

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Our future performance depends on our ability to establish that the geothermal resource is economically sustainable. We have a need for substantial additional financing and will have to significantly delay, curtail or cease operations if we are unable to secure such financing. We may be unable to obtain the financing we need to pursue our growth strategy in the geothermal power production segment, which may adversely affect our ability to expand our operations. We may not be able to fully develop the geothermal resource within the Raft River Unit I joint venture boundaries which would increase development costs for Raft River Unit II and result in delays It is very costly to place geothermal resources into commercial production. We may be unable to realize our strategy of utilizing the tax and other incentives available for developing geothermal power projects to attract strategic alliance partners, which may adversely affect our ability to complete these projects. Our participation in the joint venture is subject to risks relating to working with a co-venturer We are a holding company and our revenues depend substantially on the performance of our subsidiaries and the projects they operate. We may not be able to manage our growth due to the commencement of operations of the Raft River and San Emidio power plants and exploration activities in Neal Hot Springs which could negatively impact our operations and financial condition If we incur material debt to fund our business, we could face significant risks associated with such debt levels. We may not be able to successfully integrate companies that we may acquire in the future, which could materially and adversely affect our business, financial condition, future results and cash flow. The success of our business relies on retaining our key personnel. Our development activities are inherently very risky. The impact of governmental regulation could adversely affect our business by increasing costs for financing or development of power plants Industry competition may impede our growth and ability to enter into power purchase agreements on terms favorable to us, or at all, which would negatively impact our revenue Some of our leases will terminate if we do not achieve commercial production during the primary term of the lease, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on terms as favorable to us as any such terminated lease, if at all. Claims have been made that some geothermal plants cause seismic activity and related property damage. Actual costs of construction or operation of a power plant may exceed estimates used in negotiation of power purchase and power financing agreements. Payments under our initial power purchase agreement may be reduced if we are unable to forecast our production adequately There are some risks for which we do not or cannot carry insurance. Our officers and directors may have conflicts of interests arising out of their relationships with other companies. Failure to comply with regulatory requirements may adversely affect our stock price and business. We may be subject to liquidated damages in the event that a resale registration statement is not declared effective by September 29, 2008. A significant number of shares of our common stock are eligible for public resale. If a significant number of shares are resold on the public market, the share price could be reduced and could adversely affect our ability to raise needed capital Because the public market for shares of our common stock is limited, investors may be unable to resell their shares of common stock. The price of our common stock is volatile, which may cause investment losses for our shareholders. We do not intend to pay any cash dividends in the foreseeable future. Provisions in our bylaws and under Delaware law could discourage a takeover that stockholders may consider favorable.

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1172136--6/16/2008--US_GEOTHERMAL_INC