ARISE Technologies Announces Structured Insolvency Proceedings at ARISE Germany

Press Release Source: ARISE Technologies Corporation On Tuesday October 11, 2011, 9:00 am EDT

WATERLOO, ON, Oct. 11, 2011 /CNW/ - ARISE Technologies Corporation (TSX: APV and Frankfurt: A3T), ("ARISE" or "the Company"), today announced that it has voluntarily placed its wholly-owned German subsidiary, ARISE Technologies Deutschland GmbH, ("ARISE Germany ") into structured insolvency. The Company has not yet been able to secure the financing required to both expand the facility and upgrade its process technology to produce the higher efficiency cells required by key solar customers in a very competitive market. The continued operation of ARISE Germany , even with the adoption of a 'short work' arrangement, is not considered to be feasible under the current conditions.

It is expected that very shortly the German court will assign an insolvency manager to manage the transition of ARISE Germany's operation and work with ARISE management to maximize value for the Company's creditors and shareholders. During this process, a range of potential outcomes could occur including the injection of new capital into the business, the sale of the business assets to a third party, or an orderly shutdown of the operation and asset disposal. ARISE will continue to work with its financial advisor, Canaccord Genuity, during this period as it continues its work to evaluate strategic alternatives for the Company. The Company's Canadian operations are not presently affected by the actions taken today in Germany.

Dan Shea , ARISE's President and CEO, stated, "While disappointing, this action was necessary. Under German law, management is required to take this action when it is clear that a firm cannot meet its short term financial obligations. We continue to work on refinancing the Company as a whole, and expect additional news will be forthcoming in the near future."

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