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Wednesday, October 06, 2010

Solar Stocks; ARISE Technologies (TSX: APV ) Announces Preliminary Third Quarter Results

Solar Stocks; ARISE Technologies (TSX: APV ) Announces Preliminary Third Quarter Results


WATERLOO, ON, (http://www.investorideas.com/ clean energy stocks blog)- ARISE Technologies Corporation ("ARISE" or "the Company") (TSX: APV and Frankfurt: A3T), a leader in high-performance, high-quality, cost-effective solar technology, today announced preliminary financial results for the three and nine months ended September 30, 2010. ARISE cautions that these results are based on unaudited preliminary Company data and may be subject to final adjustment.
The preliminary unaudited results indicate that revenue for Q3 2010 is expected to total approximately $23.0 million, of which $3.7 million was from wafer tolling. This result represents a 50% increase from the $15.3 million in Q2 2010 and a 249% increase over the $6.6 million in Q3 2009. With the successful ramp-up of Line Two in June 2010, the PV cell plant in Germany is also expected to achieve positive EBITDA (Earnings before interest, tax, depreciation and amortization) for the third quarter which would exceed the Company's internal target for the quarter.

Shipments for the third quarter of 2010 are expected to be 19.5MW, up 65% from the 11.8MW in Q2 2010 and 457% higher than the 3.5MW shipped in Q3 2009. The preliminary results indicate that inventory levels remain at the low end of the Company's target range. The Company expects that quarter over quarter PV cell shipment growth will be lower in the remainder of 2010 and 2011 as results now include Line Two operating at full capacity for an entire quarter. Additional PV cell shipment growth will be generated if the Company installs additional production lines.


Revenue for the first nine-months of 2010 is expected to be $54.4M, up 166% from the $20.4M in the first nine months of 2009. Shipments were 45.2MW for the first nine-months of 2010, which is an increase of 421% over the 8.7MW shipped in the first nine-months of 2009.

"During the third quarter of 2009 our PV cell shipments continued their strong upward trend as demand for our products outpaced existing production capacities," said Vern Heinrichs, ARISE's President and Chief Executive Officer. "The increased demand we have experienced throughout 2010 continues to drive strong top-line revenue growth, and preliminary results indicate that our third quarter revenue will increase by approximately 250% over the same period last year."

"In Ontario, our systems business continues to gain traction in this early stage market, with preliminary third quarter results pointing to a more than doubling of systems revenue over the previous quarter," continued Mr. Heinrichs.

"In regards to our Silicon Division, we continue our negotiations with now three major companies to structure an agreement to commercialize our proprietary high-purity, low-cost silicon technology. This process is taking longer than we had originally anticipated. Due to recent results from our R & D activities and increasing prices for silicon world-wide, we remain optimistic that we will be able to finalize our strategic approach soon," concluded Mr. Heinrichs.



In early November, ARISE expects to release its Q3 2010 financial results and hold a conference call. Details for the third quarter conference call will be provided closer to the date of the release.

About ARISE Technologies
ARISE Technologies Corporation, based in Waterloo, Ontario, is dedicated to becoming a leader in high-performance, cost-effective solar technology. The company operates through three divisions. The PV Cell Division manufactures PV (photovoltaic) cells at its first manufacturing plant opened in April 2008 in Bischofswerda, Germany. The division is developing proprietary technology with a target of achieving a step-by-step progression to a high-efficiency level of greater than 20%. The PV Silicon Division is using a proprietary method to produce silicon at 7N+ high-purity (99.99999% purity) for PV cell applications, based on a simplified chemical vapor deposition process. The division is focusing on scaling up its process to provide ARISE with control over its supply, costs, and quality. The PV Systems Division has been providing PV solutions for solar farms and rooftop installations since 1996 throughout North America. ARISE is planning to expand its systems business in Ontario under the Ontario FIT (Feed-In Tariff) program.



The company's shares are listed on the Toronto Stock Exchange under the symbol APV and on the Frankfurt Open Market Exchange under the symbol A3T. Additional information is available at www.arisetech.com and http://www.sedar.com/.

Forward-Looking Statements and Risk Factors
Certain statements in this news release may be considered to be forward-looking. Such statements are based on management's current expectations, estimations, and assumptions based on experience, trends, and other factors that are subject to the significant risks and uncertainties described in our regulatory filings. Please refer to these. Such risks and uncertainties may include, but are not limited to, the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, the requirement for additional capital, high debt levels, negative working capital levels, lack of profitability, risks associated with manufacturing, industry supply levels, competitive pricing pressures and misjudgements in the course of preparing forward-looking statements.

Risk factors relating to ARISE are discussed in the Risk Factors section of ARISE's Annual Information Form and under the headings Liquidity and Capital Resources and Risk and Uncertainties in ARISE's year-end Management's Discussion and Analysis which are or will be available at www.sedar.com. These factors should be considered carefully, and readers should not place undue reliance on ARISE's forward-looking statements.

ARISE assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

For further information
ARISE Technologies Corporation, 65 Northland Road, Waterloo, Ontario, Canada, N2V 1Y8, Doug McCollam, Chief Financial Officer, (519) 772-5706, Doug.McCollam@arisetech.com, www.arisetech.com

Investor Relations, Glen Williams, The Equicom Group, (416) 815-0700 ext. 272, gwilliams@equicomgroup.com

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