ARISE Technologies Closes Private Financing

ARISE Technologies Corp. (Kitchener, Ontario Canada), a developer of solar photovoltaic (PV) technologies, announced that it has closed the second tranche of a private placement of convertible secured debentures and, in addition, converted $195,468 of outstanding debt and trade payables for shares, subject to approval by the TSX Venture Exchange. With this second tranche, the company has issued $254,300 of convertible secured debentures for cash and has converted previously advanced debt into $177,529 of convertible secured debentures.

The debentures are convertible into units at $0.25 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant shall entitle the holder to acquire one ARISE common share at a warrant exercise price, which increases from $0.25 to $1.00 if the company reaches certain capital raising milestones over the next two years. The debentures are secured and pay interest of six percent per annum. Combined with the first tranche of this financing announced on August 17, 2005, the company has issued a total of $365,300 of convertible secured debentures for cash and has converted outstanding debt into $277,529 of convertible secured debentures, for a total of $642,829. In addition, the company has converted $195,468 of existing debt and trade payables into 779,514 shares, subject to approval by the TSX Venture Exchange.

ARISE Vice Chairman and CEO Ian MacLellan stated, "We are pleased with the results of this financing from new and existing investors. We are also pleased that the convertible secured debentures generated some institutional interest. The convertible secured debentures and debt for shares conversion will help strengthen our balance sheet as we continue to make progress on our path to profitability and bringing our proprietary photovoltaic technology to market."