04.02.06

4.2.2006: Meldung: Arise Technologies Corporation

Arise financing, debt conversion and LOI update
Thursday February 2, 6:38 pm ET

Kitchener, ON, Feb. 2 - Arise Technologies Corporation, announced today that it has filed a new price reservation with the TSX Venture Exchange in respect of a nonbrokered private placement of Units. Each Unit, priced at $0.30 each, will consist of one common share and one half of one warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.35 per common share, expiring two years from the date of closing of this private placement. This offering replaces the proposed private placement announced by the Company on December 22, 2005.

The non-brokered private placement is expected to close on or about February 15, 2006 and is being made to "accredited investors" as defined in National Instrument 45-106 and is subject to receipt of final approval from the TSX Venture Exchange. The net proceeds of the proposed financing will be used for working capital, research and development and general corporate purposes.

Arise CEO Ian MacLellan has reached an agreement to acquire $560,000 first position secured debt from a major creditor. Ian has agreed in principle to enter into a standstill agreement to refrain from taking action to collect the debt and will, subject to TSX Venture Exchange approval, convert into common shares most of the debt owing to him on the same terms of this offering, provided the Company closes the financing announced today and acceptable standstill agreements or debt to equity conversion arrangements are reached with other major creditors. Arise is in discussions with other major creditors to either convert debt to equity or agree to a standstill agreement providing for extended payment terms and/or discounts. Currently the Company has approximately $1.4 million (unaudited) of secured debt outstanding of which management, directors and advisors now hold 74%. The Company has approximately $1.8 million (unaudited) of unsecured debt and accrued liabilities.

Arise has also extended a 2008 allocation of 10MWp to each of the strategic prospective customers that have signed Letters of Intent (LOI) which they accepted. This has resulted in Arise now having targeted 20MWp of production in 2007 and 40MWp of production in 2008. At this point, this is the maximum production that management feels comfortable targeting. Arise has also received inquiries from other companies for allocations. Arise would like to emphasize that these are non-binding Letters of Intent, pricing has not been set and Arise needs to raise additional funds to meet the technology milestones required to satisfy these prospective customers in order to turn these LOIs into firm purchase orders and production commitments.

No assurance can be given that the Company will be able to complete any of the debt conversion or equity transactions given its current financial resources. The Company requires additional capital shortly to continue its operations.

Arise CEO Ian MacLellan stated "while the response to our LOI marketing program of high efficiency PV cells has exceeded our expectations, it is critical that we solve our chronic undercapitalized financial situation if we are to realize on this opportunity. Upon the completion of the assignment of the position of our largest secured creditor, a significant impediment to our financing will be removed. Based on the CLSA Asia-Pacific Markets Sunscreen 2 industry report and current exchange rates, the Company"s LOIs that have been signed to date could represent significant potential revenue in the first two years of production for Arise. At the same time, the liabilities on the Company"s balance sheet have hurt its ability to raise additional cash. It is critical that the Company achieve its funding objectives in order to meet its production targets."

About Arise

Arise Technologies is dedicated to accelerating the use of solar energy in mainstream markets. In collaboration with the University of Toronto, Arise is developing high efficiency, more cost effective PV cells for the global PV market that has grown from US$5.0 billion in 2003 to an estimated US$11.1 billion in 2005. The solar cells will be produced using the patented DC Saddle-Field thin film technology that permits the production of high quality films on large areas allowing the production of thin-film on silicon wafer hybrid PV cells. The Company"s shares are listed on the TSX Venture Exchange under the symbol APV. Additional information is available at www.arisetech.com and www.sedar.com.


For further information

Arise Technologies Corporation, 321 Shoemaker Street, Kitchener, Ontario, Canada, N2E 3B3, Tel. (519) 725-2244, Fax: (519) 725-8907, www.arisetech.com
Ian MacLellan, Vice-Chairman & CEO, (519) 725-2244 x222, ian.maclellan@arisetech.com
TSX Venture Exchange Symbol: APV


Source: Arise Technologies Corporation
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