DRESDEN, Germany - ARISE is pleased to confirm that it has signed a non-binding Letter of Intent for the purchase of land with the city of Bischofswerda, Germany as the potential location of the ARISE photovoltaic cell manufacturing facility. With an investment of about EURO 50 million the creation of 300 jobs is planned. The target production capacity of the plant will be 80MW's with the first line planned to be running in the fourth quarter of 2007.

ARISE, in collaboration with the University of Toronto and Komag, Inc, is developing a thin-film deposition methodology which will be used to produce high efficiency heterojunction silicon PV cells. The PV cells will be produced using ARISE's 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 heterojunction PV cells. The Company intends to supply high efficiency solar cells to the global solar electricity market that has grown from US$5.0 billion in 2003 to an estimated US$11.1 billion in 2005.
Ian MacLellan, Vice-Chairman & CEO of ARISE today stated, "We are extremely pleased with the support we have received from the IIC, the State of Saxony by its Saxony Economic Development Corporation and the city of Bischofswerda. We selected Germany because it is the largest solar market in the world; it has a high concentration of solar technology companies, and has access to skilled technical labour. We believe that locating in Germany will help ARISE accelerate its manufacturing plan and reduce implementation risk. We are confident in our site selection and are looking forward to an upcoming ground breaking ceremony".

Delivery of a Project Valued at Over 1.5 Million Dollars

MISSISSAUGA - D Mecatronics Inc. designs, manufactures, and markets industrial and consumer products. Through independent subsidiaries we provide state-of-the-art automation technology solutions to enable customers to dramatically accelerate time-to-market and increase revenue.

D Mecatronics Inc. continues to redefine the product quality and performance expectations of our customers, as we successfully deliver yet another project on time and error free, valued at over 1.5 million dollars, bringing total sales for 2006 to more than 5 million dollars.

"As we take definitive steps towards executing on our proven business strategies, we are pleased to have completed and delivered yet another project on time and error free," stated Berardino Paolucci, chairman of the board of directors, president and CEO of D Mecatronics Inc. "D Mecatronics Inc.'s success is built on the quality of its relationships. We treat our customers as partners and include them in the design process from the beginning. With up-front input from our customers, employees and suppliers, we can make the design process a collaborative and creative one. This process improves the performance of every partner involved, resulting in a superior product."

D Mecatronics Inc.'s management team has, for more than thirty years, provided some of the nation's largest automotive parts suppliers with state-of-the-art automation solutions. In keeping with our customers' insatiable demands, our engineering department is currently finalizing our next project which will be producing seat frames for the new Toyota Tundra and that is scheduled to be complete and delivered at the end of December 2006. Our highly skilled staff of machinists, welders, sheet metal fabricators and engineers have years of experience constructing some of the nation's most impressive and innovative machines.

"Our customer base consists of Fortune 500 companies who understand that the long-term supplier relationship is crucial to their success. We believe that the D Mecatronics Inc. team will continue to significantly accelerate the programs of our partners by serving them with high quality, highly efficient and proven large-scale manufacturing platforms, focusing our global capabilities on the ever-changing needs of our customers as well as the industry needs," states Dino Paolucci Jr. Vice President/Director.

TORONTO --More than 300 jobs evaporated in Ontario's auto sector Tuesday as parts manufacturers slashed jobs and closed plants. Dura Automotive Systems (DRRA) told employees it will close a plant in Stratford, Ont., putting 225 people out of work. Dana Corp. (DCN) eliminated about 100 jobs in nearby St. Mary's where they make frames for Ford Motor Co.'s (F) F-series trucks. Dana is operating under bankruptcy protection in the U.S. while Dura, which closed a Brantford, Ont., plant earlier this year, is in the midst of a restructuring. By closing the Stratford plant, Dura wipes out jobs that made shift cables, parking brake systems and other parts. Dura is shifting much of the work to Mexico, union officials said.

Prices for manufactured goods at the factory gate rose sharply in July as prices for primary metal and petroleum products increased. Raw materials prices also increased in July, the result of higher prices for crude oil and non-ferrous metals.

Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were up 1.7% in July following a 0.4% decline in June. Higher prices for primary metal products and petroleum products were the major contributors to this monthly increase.

The 12-month change in the IPPI was up 4.3%, almost double the year-over-year increase of 2.2% in June. Upward pressure came mainly from higher prices for primary metal products and petroleum products.

The Raw Materials Price Index (RMPI) was up 5.2% from June to July following a 2.3% decrease in June. The increase was due primarily to higher prices for crude oil and non-ferrous metals.

Compared to July of last year, raw materials cost factories 19.0% more, up significantly from the year-over-year change of 14.8% in June.

The IPPI stood at 115.6 (1997=100) in July, up from 113.7 in June. The RMPI reached 175.1 (1997=100), up from a revised level of 166.4 in June.

IPPI: Higher prices for primary metals and petroleum products

On a month-over-month basis, manufacturers' prices were up 1.7%, mainly due to higher prices for primary metal products as well as petroleum products. This was the largest monthly increase since May 2004.

Prices for primary metal products rose 7.2% compared to June, a sharp contrast to the 5.2% decrease the previous month. Prices for nickel products surged 40.8% due to strong global demand and lower inventories. Higher prices were also observed for copper products (+13.2%), refined zinc products (+18.2%) as well as refined gold products (+11.8%).

Petroleum and coal products prices increased by 5.2%, considerably higher than the increases of 0.9% in May and 0.6% in June. If petroleum and coal product prices had been excluded, the IPPI would have increased 1.2% rather than 1.7%.

Motor vehicles and other transport equipment were up 0.9%, mainly due to the weaker Canadian dollar. Meat, fish and dairy products increased 1.3% as prices for fresh or frozen pork went up 9.0% in July.

Prices for pulp and paper products, lumber and other wood products, electrical and communication products as well as machinery and equipment also increased in July.

IPPI: Primary metal and petroleum products are the major contributors to the 12-month change

The IPPI was up 4.3% in July compared with the same month a year earlier, a significant increase from the year-over-year change of 2.2% in June and the largest increase since October 2004.

Prices for primary metal products were up 29.6% compared to a year ago. Prices for copper products (+101.5%), nickel products (+69.2%), refined zinc products (+173.9%) and aluminum products (+18.5%) were all higher compared with one year earlier.

Prices for petroleum and coal products rose 21.1% from July 2005, up slightly from June's increase of 20.2%. If petroleum and coal product prices had been excluded, the IPPI would have increased 2.6% rather than 4.3% from a year ago.

Prices were also higher than one year ago for chemical products, rubber, leather and plastic fabricated products, meat, fish and dairy products, pulp and paper products, metal fabricated products and non-metallic mineral products.

However, motor vehicles and other transport equipment prices were down 5.2% from a year ago, due to the stronger Canadian dollar.

Lumber and other wood products declined 4.0% compared to July 2005, as year-over-year decreases were recorded for softwood lumber (-6.3%) and particleboard (-13.6%).

Prices for electrical and communication products as well as machinery and equipment were also down from a year ago.

RMPI: Crude oil and non-ferrous metals push up raw materials prices

Raw materials prices rose 5.2% in July, following a decrease of 2.3% in June.

Mineral fuels increased 6.0% compared to June. Prices for crude oil were up 7.5%, mainly due to concerns about supply disruptions. If mineral fuels had been excluded, the RMPI would have increased 4.5% instead of 5.2%.

Non-ferrous metals (+12.8%) rebounded in July, a significant change from the 10.9% decline in June. Higher demand and low inventories pushed up prices for zinc concentrates (+17.6%), copper concentrates (+17.2%), nickel concentrates (+38.9%), lead concentrates (+25.6%) and gold (+11.8%).

Prices for vegetable products and non-metallic minerals also contributed to the monthly increase but to a much lesser degree.

On the other hand, prices for animal and animal products, ferrous materials and wood products decreased from June to July.

On a 12-month basis, the price of raw materials rose 19.0% in July, up from the 14.8% year-over-year increase in June.

Mineral fuels were up 16.0% with crude oil prices rising 18.8%. If mineral fuels had been excluded, the RMPI would have increased 22.6% instead of rising 19.0%.

Prices for non-ferrous metals rose 82.3%, mainly because of higher prices for zinc, copper, radio-active concentrates, nickel, gold and lead.

Prices for ferrous materials, vegetable products, wood products, animal and animal products and non-metallic minerals were also up from a year ago.

Impact of the exchange rate

The value of the Canadian dollar against the US dollar fell 1.4% between June and July. As a result, the total IPPI excluding the effect of the exchange would have risen 1.3% instead of its actual increase of 1.7%.

On a 12-month basis, the value of the Canadian dollar rose 8.3% against the US dollar. If the impact of the exchange rate had been excluded, producer prices would have risen 6.5% between July 2005 and July 2006, rather than their actual increase of 4.3%.

Higher prices for intermediate goods

Prices for intermediate goods increased 2.0% from June. Higher prices for primary metal products, petroleum products, pulp and paper products, meat, fish and dairy products, motor vehicles as well as lumber products were the major contributors to this monthly rise.

Producers of intermediate goods received 7.2% more for their goods this July than in July 2005. Higher prices were registered for primary metal products, petroleum products, rubber, leather and plastic fabricated products, chemical products, pulp and paper products, metal fabricated products, non-metallic mineral products, and meat, fish and dairy products.

These increases were partly offset by lower prices for lumber products, motor vehicles, fruit, vegetable and feed products and tobacco products.

Finished goods prices increase

Prices for finished goods were up 1.1% from June. Higher prices for petroleum products, motor vehicles, meat, fish and dairy products and electrical and communication products were the major contributors to the monthly increase.

Compared with July 2005, prices for finished goods inched up 0.2%. Higher prices were registered for petroleum products, tobacco products, meat, fish and dairy products, fruit, vegetable and feed products, chemical products, rubber, leather and plastic fabricated products as well as furniture and fixtures.

These increases were partly offset by lower prices for motor vehicles, electrical and communication products, machinery and equipment and lumber products.

Industrial product price indexes
	(1997=100)
	Relative importance	July 2005	June 2006r	July 2006p	July 2005 to July 2006	June to July 2006
					% change
Industrial product price index (IPPI)	100.00	110.8	113.7	115.6	4.3	1.7
IPPI excluding petroleum and coal products	94.32	105.8	107.2	108.5	2.6	1.2
Aggregation by commodities
Meat, fish and dairy products	5.78	105.8	106.8	108.2	2.3	1.3
Fruit, vegetables, feeds and other food products	5.99	103.8	104.0	104.1	0.3	0.1
Beverages	1.57	121.4	122.2	122.2	0.7	0.0
Tobacco and tobacco products	0.63	178.1	187.9	187.9	5.5	0.0
Rubber, leather and plastic fabricated products	3.30	113.1	118.0	118.1	4.4	0.1
Textile products	1.58	100.7	99.9	99.8	-0.9	-0.1
Knitted products and clothing	1.51	104.4	104.8	104.9	0.5	0.1
Lumber and other wood products	6.30	90.5	86.4	86.9	-4.0	0.6
Furniture and fixtures	1.59	115.4	118.3	118.3	2.5	0.0
Pulp and paper products	7.23	103.5	104.4	105.4	1.8	1.0
Printing and publishing	1.70	115.4	114.9	115.3	-0.1	0.3
Primary metal products	7.80	112.6	136.1	145.9	29.6	7.2
Metal fabricated products	4.11	121.0	123.8	123.8	2.3	0.0
Machinery and equipment	5.48	107.8	106.8	107.1	-0.6	0.3
Motor vehicles and other transport equipment	22.16	97.0	91.2	92.0	-5.2	0.9
Electrical and communications products	5.77	94.0	92.6	93.2	-0.9	0.6
Non-metallic mineral products	1.98	114.9	119.9	120.0	4.4	0.1
Petroleum and coal products1	5.68	203.5	234.3	246.4	21.1	5.2
Chemicals and chemical products	7.07	118.3	121.4	121.5	2.7	0.1
Miscellaneous manufactured products	2.40	110.1	112.0	113.6	3.2	1.4
Miscellaneous non-manufactured products	0.38	168.7	234.6	238.4	41.3	1.6
Intermediate goods2	60.14	111.8	117.4	119.8	7.2	2.0
First-stage intermediate goods3	7.71	120.6	138.8	147.1	22.0	6.0
Second-stage intermediate goods4	52.43	110.5	114.1	115.7	4.7	1.4
Finished goods5	39.86	109.2	108.2	109.4	0.2	1.1
Finished foods and feeds	8.50	111.7	113.1	113.6	1.7	0.4
Capital equipment	11.73	103.0	99.3	99.9	-3.0	0.6
All other finished goods	19.63	111.9	111.4	113.3	1.3	1.7
r revised p preliminary 1. This index is estimated for the current month. 2. Intermediate goods are goods used principally to produce other goods. 3. First-stage intermediate goods are items used most frequently to produce other intermediate goods. 4. Second-stage intermediate goods are items most commonly used to produce final goods. 5. Finished goods are goods most commonly used for immediate consumption or for capital investment.

Raw materials price indexes
	(1997=100)
	Relative importance	July 2005	June 2006r	July 2006p	July 2005 to July 2006	June to July 2006
					% change
Raw materials price index (RMPI)	100.00	147.1	166.4	175.1	19.0	5.2
Mineral fuels	35.16	254.3	278.2	294.9	16.0	6.0
Vegetable products	10.28	83.0	84.0	86.1	3.7	2.5
Animals and animal products	20.30	103.3	105.3	104.6	1.3	-0.7
Wood	15.60	74.8	76.7	76.6	2.4	-0.1
Ferrous materials	3.36	115.5	133.2	132.7	14.9	-0.4
Non-ferrous metals	12.93	113.8	183.9	207.5	82.3	12.8
Non-metallic minerals	2.38	134.7	141.0	141.3	4.9	0.2
RMPI excluding mineral fuels	64.84	97.6	114.6	119.7	22.6	4.5
r revised p preliminary

Note to readers

The Industrial Product Price Index (IPPI) reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs.

Canadian producers export many goods. They often quote their prices in foreign currencies, particularly for motor vehicles, pulp, paper, and wood products. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI.

The Raw Materials Price Index (RMPI) reflects the prices paid by Canadian manufacturers for key raw materials. Many of these prices are set in a world market. Unlike the IPPI, the RMPI includes goods not produced in Canada.

Manufacturing shipments increased 1.9% to $51.4 billion in June, the highest level since January 2006. And while the trend for manufacturing is positive, shipments have been consistently in the $50 billion to $52 billion a month range for the last two years. The manufacturing sector has managed to maintain this level of shipments despite of the challenges of a rising Canadian dollar and increased global competition. Over the second quarter, shipments were down 0.4% from the first quarter but up 0.6% compared to the same period in 2005. Controlling for price fluctuations, total shipments increased by 0.7% in June.

Gains were posted in 13 of 21 manufacturing industries in June, accounting for 80% of total shipments. Durable goods shipments increased by 1.1% to $28.8 billion, thanks to quarter end shipments of computer and electronic equipment, which rose 5.4% to $1.8 billion.

At the same time, the transportation equipment industry perked up with a 1.5% increase after months of decline or marginal growth. North American consumers' increasing appetite for smaller, more fuel efficient vehicles may bode well for automotive manufacturers in Canada and reverse the negative trend observed over the past nine months. Shipments of motor vehicles increased 3.0% to $5.1 billion while aerospace slipped by 3.1% to $1.1 billion.

Shipments of non-durable goods increased 2.8% to $22.6 billion, led by increased production of petroleum and coal products as refinery output returned to normal production levels following maintenance shutdowns in May. Petroleum product shipments increased 13.5% to $5.2 billion and was largely volume driven, as the price of petroleum and coal products rose by only 0.6% in June.

Canada's largest provinces boost output

June was a good month for Ontario and Quebec and resource-rich Alberta and British Columbia. However, Saskatchewan, Manitoba and the Atlantic provinces suffered declines in shipments of manufactured goods.

Quebec shipments jumped 4.8% to $12.7 billion, mainly due to increased refinery output, which reclaimed the number two spot among Quebec industries. Aerospace shipments declined by 2.4%, a moderation of the large swings seen in recent months.

In Ontario, the transportation industry, which accounts for nearly a third of Ontario's manufacturing output, increased 2.2% to just under $8.0 billion. This was the main reason behind Ontario's 1.2% jump in shipments to $25.2 billion. Automotive shipments rose by 3.7% to just under $5.0 billion, as auto plants increased output in anticipation of maintenance shutdowns to come in July. Also, popular new models are assembled in southern Ontario plants, along with smaller more fuel efficient vehicles. These plants have become the beneficiaries of a growing consumer shift from large luxury vehicles to economy vehicles now that higher gas prices have persisted in Canada and the United States.

Alberta petroleum refiners increased shipments by 6.1% to $1.1 billion, even though prices rose only marginally. Overall, shipments from Alberta manufacturers increased 3.3% to $5.4 billion while in British Columbia, total shipments improved by 1.1% to $3.9 billion, led by increases in shipments of paper, petroleum and coal.

Lower prices for seafood products and a break from record shipments of primary metals resulted in a 3.1% drop in shipments from the Atlantic provinces to $2.4 billion.

Manufacturing shipments by province and territory
	May 2006r	June 2006p	May to June 2006
	Seasonally adjusted
	$ millions		% change
Canada	50,486	51,437	1.9
Newfoundland and Labrador	212	183	-13.6
Prince Edward Island	117	116	-0.9
Nova Scotia	818	793	-3.1
New Brunswick	1,325	1,303	-1.7
Quebec	12,101	12,678	4.8
Ontario	24,885	25,190	1.2
Manitoba	1,045	1,036	-0.8
Saskatchewan	982	921	-6.3
Alberta	5,187	5,360	3.3
British Columbia	3,808	3,851	1.1
Yukon	1	1	-4.6
Northwest Territories including Nunavut	5	5	-13.7
r revised p preliminary

Inventories down in June

Manufacturers' total inventories fell $454 million to $65.8 billion in June, a 0.7% decrease. June's decrease was the largest drop since September 2005 and followed a 0.8% increase in May. Inventories were drawn down mainly in the petroleum and coal industry, which fell by 7.9% to $3.4 billion.

There were numerous smaller declines as well. Transportation dropped 0.8% to $9.5 billion, mainly because of a 5.5% drop in motor vehicle inventories to $1.3 billion. Wood (-2.0%) and paper (-2.6%) inventories were down while chemicals (+1.5% to $7.3 billion) and primary metals (+0.8% to $6.4 billion) provided offsetting positive movements.

The decrease in inventories was split between declines in raw materials inventories (-1.2%) and the finished product stage of fabrication (-1.2%). Goods-in-process inventories increased by 1.0%.

The trend for total inventories over the last quarter has been relatively stable since January.

Inventory-to-shipment ratio falls

The inventory-to-shipment ratio decreased from its recent high of 1.31 to 1.28 in June, due to the increase in the value of shipments and the decline in inventories. However, the overall trend for the ratio, which had remained relatively stable last year, has been on the rise in 2006 as shipment activity strains under several factors including the strong Canadian dollar and soaring input costs.

The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.

New aerospace orders continue to lead all industries in June

New orders rose by 2.5% to $51.5 billion in June. Aerospace products were the catalyst behind the rise with a 45.4% increase in new contracts in June. This follows a revised 37.9% advance in May. New orders for motor vehicles also bounced back from two consecutive declines, climbing 4.7% to $5.3 billion in June.

Overall, the trend for new orders ended the second quarter on a positive note, rising 0.1%.

Unfilled orders increase slightly but the overall trend remains negative

After declining for two months, unfilled orders strengthened. The backlog of orders rose 0.1% to $42.5 billion, a turnaround from the 0.6% drop in May. The overall trend in recent months continued to edge down.

Despite the recent slowdown in unfilled orders, the average annual level of orders remains 4.6% higher in 2006 compared to one year ago.

June's increase was concentrated in the transportation industry, which increased 1.7% to $19.9 billion. The aerospace industry witnessed the largest increase and is up by more than a quarter billion dollars to $13.5 billion. Unfilled orders for motor vehicles increased by $123 million to $1.7 billion.

New orders in the aerospace industry were up substantially and were responsible for an increase in the overall level of unfilled orders. Excluding aerospace, unfilled orders would have declined by 0.9%.

Manufacturing employment continues to recede

According to the most recent release of the Labour Force Survey, employment in manufacturing was little changed in June (-4,100), following almost 22,000 job losses in May. There were 83,000 (-3.8%) fewer employees on factory payrolls in June compared to one year ago.

Note to readers

Non-durable goods industries include food, beverage and tobacco products, textile mills, textile product mills, clothing, leather and allied products, paper, printing and related support activities, petroleum and coal products, chemicals, and plastics and rubber products.

Durable goods industries include wood products, non-metallic mineral products, primary metals, fabricated metal products, machinery, computer and electronic products, electrical equipment, appliances and components, transportation equipment, furniture and related products and miscellaneous manufacturing.

Unfilled orders are a stock of orders that will contribute to future shipments assuming that the orders are not cancelled.

New orders are those received whether shipped in the current month or not. They are measured as the sum of shipments for the current month plus the change in unfilled orders. Some people interpret new orders as orders that will lead to future demand. This is inappropriate since the "new orders" variable includes orders that have already been shipped. Readers should note that the month-to-month change in new orders may be volatile. This will happen particularly if the previous month's change in unfilled orders is closely related to the current month's change.

Not all orders will be translated into Canadian factory shipments because portions of large contracts can be subcontracted out to manufacturers in other countries. Also, some orders may be cancelled.

WATERLOO REGION - ARISE is pleased to announce that it has signed a Letter of Intent with the Industrial Investment Council (IIC) of Germany to explore the possibility of establishing a photovoltaic (PV) cell manufacturing facility in eastern Germany. The IIC is assisting ARISE with potential site selection, developing strategic partnerships, accessing German federal and state investment incentive programs and reviewing possible local financing options.

Ian MacLellan, Vice-Chairman & CEO of ARISE stated, "We are at an advanced stage in our investigation into locating PV cell manufacturing in Germany. We selected Germany because it is the largest solar market in the world, it has a high concentration of solar technology companies, and has access to skilled technical labour. We believe that locating in Germany would help ARISE accelerate its manufacturing plan and reduce implementation risk. This approach also provides for a long term high volume strategic supply agreement as contemplated in our R&D Collaboration Agreement with Komag."

ARISE, in collaboration with the University of Toronto and Komag, Inc, is developing a thin-film deposition methodology which will be used to produce high efficiency heterojunction silicon PV cells. The PV cells will be produced using ARISE's 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 heterojunction PV cells. The Company intends to supply high efficiency solar cells to the global solar electricity market that has grown from US$5.0 billion in 2003 to an estimated US$11.1 billion in 2005. The Company is also well positioned to expand in Ontario once the Standard Offer Contract regulations are put in place.

The IIC acts as a one-stop shop for international investors in eastern Germany, covering the entire investment decision process. Government grants of up to 50% of the capital cost of plant and equipment are available from German federal and state governments to a maximum investment of 50 million Euros. These grants are available in the form of refundable tax credits for expenditures incurred by the end of June 2008. In order to move forward with any proposed manufacturing plan and receive the maximum grant levels of 50%, ARISE would need to raise additional capital before the end of 2006.

Arise announces second quarter 2006 results

WATERLOO REGION - ARISE Technologies Corporation announced August 15 its financial results for the three months and six months ended June 30, 2006. As a result of closing a major financing during the quarter, ARISE significantly improved its cash and working capital positions. As at June 30, 2006, the Company had positive working capital of $936,384 compared to a working capital deficit of $2,402,217 at December 31, 2005.

During the quarter, ARISE continued to invest in its proprietary photovoltaic cell technology and its proprietary silicon refining process. As a result, the net loss for the second quarter of 2006 was $435,415 ($0.02 per share) compared to a net loss of $368,730 ($0.03 per share) for the same period last year. The increased loss was due to higher administrative and corporate development expenses as the company added management resources, partially offset by a temporary decline in research and development expenses and reduced interest expense. The net loss for the six months ended June 30, 2006 was $1,196,076 compared to a net loss of $762,293 for the first half of 2005. The increased year-to-date loss is due to reduced revenue in the first quarter and higher administrative and corporate development expenses, research and development costs and selling and marketing expenses. This was partially offset by lower interest expense.

Ian MacLellan, Vice-Chairman and CEO commented "We are very pleased that by closing the financing early in the second quarter we have been able to focus on growing ARISE by executing on our business plan. We have been able to increase sales 13.8% over the same period last year. We accomplished this sales growth with similar staffing levels. Most of our effort in the second quarter has been to start the process to move our PV technology into production. We recently hired several new staff and have allocated additional resources to accelerate the high efficiency heterojunction PV program.

In addition, we are pleased to have met two major silicon project milestones on schedule by producing high purity silicon in the laboratory with our proprietary silicon refining process on June 21, 2006 and announcing the Sustainable Development Technology Canada funding commitment on July 6, 2006. I would also like to thank all of our shareholders for their encouragement and support over the last couple of most trying years.

Now that we have the resources to take ARISE to the next step in our business plan, we are excited about the ability to focus on execution."

Overview

ARISE Technologies Corporation provides a range of solar energy solutions from small portable plug and play systems through to turnkey solar energy solutions. The Company provides solar energy design and consulting services and installation of custom solar energy systems primarily in the Ontario market. Products are also offered on a retail and wholesale basis through www.solarsense.com.

In addition, the Company is funding research and development of a high-efficiency heterojunction photovoltaic ("PV") cell in conjunction with the University of Toronto ("U of T"), the Centre for Materials and Manufacturing ("CMM"), and the Emerging Materials Knowledge Network ("EMK"). The Company has also commenced research and development on new technology related to the production of solar grade silicon feedstock in conjunction with its consortium partners and Sustainable Development Technologies Canada ("SDTC").

PV Technology Research and Development Status

ARISE, in conjunction with its research and development partner U of T, is developing a high-efficiency PV cell using a proprietary thin-film deposition process (the "U of T PV Research Program").

The U of T PV Research Program completed the "proof of principle" milestone in September 2004 with a demonstration scale PV cell producing 13.5% conversion efficiency. Based on these results and unprecedented worldwide demand for PV cells, ARISE has increased its emphasis on the U of T PV Research Program and related technology. The U of T PV Research Program has recently produced a one square inch prototype PV cell with efficiency exceeding 15.5% and an open circuit voltage exceeding 600 milli-volts. ARISE believes that with additional process steps, the proprietary process to produce thin-film heterojunction silicon PV cells could achieve an efficiency of greater than 18%.

The next technical milestone for the U of T PV Research Program is the production of full size prototype PV cells. The Company expects to meet this technical milestone in 2006. The Company's goal is to begin shipping PV cells to module manufacturers by the end of 2007. In order to achieve this goal, the Company needs to achieve several technical milestones, finalize its manufacturing plan and raise additional capital before the end of 2006. In addition, the Company will need to secure a supply of silicon wafers from internal and external sources.

On April 25, 2006, the Company fulfilled its funding obligations under the Research Collaboration Agreement with the U of T and CMM when it submitted its final payment of $284,748 plus GST. As a result of the Company fulfilling its commitment, EMK has agreed to match the ARISE cash contribution of $284,748 as announced on August 1, 2006. The additional funding has increased the CMM/EMK contribution to the U of T PV Research Program from $450,000 to $620,849.

On August 3, 2006, the Company announced that it had secured a $450,000 funding commitment from the Ontario Centres of Excellence ("OCE") Centre for Energy for phase two of its PV research program being carried out in collaboration with U of T. Upon execution of a Research Collaboration Agreement, ARISE will commit to $750,000 of cash contributions and $640,000 of in-kind support over a 36 month period. The OCE funding of $450,000 will be subject to a yearly review verifying that milestones and deliverables have been met and delivered for each project.

On August 15, 2006 the Company entered into a Letter of Intent with the Industrial Investment Council (IIC) of Germany to explore the possibility of establishing a PV cell manufacturing facility in eastern Germany. The IIC is assisting the Company with potential site selection, developing strategic partnerships, accessing German federal and state investment incentive programs and with reviewing possible local financing options. The Company intends to select a final site by the end of August 2006. Government grants of up to 50% of the capital cost of plant and equipment are available from German federal and state governments to a maximum investment of 50 million. These grants are available in the form of refundable tax credits for expenditures incurred by the end of June 2008. In order to move forward with any proposed manufacturing plan and receive the maximum grant levels of 50%, the Company would need to raise additional capital before the end of 2006. The maximum German grant levels reduce to 43% on January 1, 2007. There is no guarantee that the Company will reach an acceptable agreement for the establishment of a manufacturing facility in Germany.

Finally, ARISE is pleased to announce that Prof. Siva Sivoththaman has joined its Advisory Council. Prof. Sivoththaman is Head of the Photovoltaics Research Group, Centre for Advanced Photovoltaic Devices and Systems (CAPDS) at the University of Waterloo (http://www.capds.uwaterloo.ca).

Solar Grade Silicon Development Status

ARISE is conducting research and development on a process to produce silicon which is of sufficient purity to be used in the production of PV cells ("solar grade silicon"). ARISE's technology strategy for solar grade silicon production (the "Solar Grade Silicon Development Project") is as follows: <<

- Focus on a silicon process for PV technology only
- Pre-treat the quartzite to improve metallurgical grade silicon material for the Company's PV silicon process
- Produce trichlorosilane ("TCS") utilizing a lower cost, potentially patentable process
- Convert TCS into either rods or granular PV silicon
- Create innovations in rod processes to make it more energy efficient >>

During the second quarter, the Company provided initial seed funding to a Canadian university professor to carry out the laboratory work to reach the first major technical milestone of the Solar Grade Silicon Development Project. On June 23, 2006, the Company announced that it had reached this technical milestone by demonstrating in the laboratory a new approach for refining high purity solar grade silicon. ARISE has been working on this project with a consortium which includes Ebner Gesellschaft M.B.H., Komag, Inc., Topsil Semiconductor Materials A/S, the University of Toronto and the University of Waterloo.

On July 6, 2006, ARISE announced that it had secured a commitment from Sustainable Development Technology Canada ("SDTC") to provide $6.5 million of funding for ARISE's $19.8 million Solar Grade Silicon Development Project. The SDTC contribution will be leveraged by a $13.3 million cash and in-kind commitment from the consortium led by ARISE. The non-repayable $6.5 million SDTC contribution will be disbursed over a three year period once a final Contribution Agreement has been executed and specific project milestones have been met. On August 1, 2006, ARISE and SDTC signed a term sheet outlining the provisions of the Contribution Agreement. ARISE has also commenced the process of finalizing Consortium Agreements which must be in place before the Contribution Agreement is signed with SDTC. The Company intends to complete this contracting process by the end of 2006.

ARISE intends to finance the majority of the Solar Grade Silicon Development Project with the balance coming in cash from the SDTC contribution and in-kind support from consortium partners. In order for ARISE to fulfill its funding commitment, the Company will need to raise additional capital.

Systems Division Status

Since March 31, 2006, ARISE has received several shipments of PV modules and its inventory position is now stronger than it has been for 15 months. As a result of the improved inventory position and regular shipments of PV modules, the Company has been able to increase its quote activity. Sales in the second quarter of 2006 exceeded the same quarter last year and improved substantially from first quarter of 2006; however, management expects that it will take some time for the Company to re-establish its presence in the Ontario marketplace.

On March 21, 2006 the Ontario government announced a Standard Offer Contract to provide producers of PV generated electricity a feed-in tariff of $0.42 per kWh. This program is expected to be implemented in 2006 and represents a potential opportunity for ARISE.

Financial Results

Revenues

Sales for the three months ended June 30, 2006 were $302,975, representing a 13.8% increase over the same period in 2005 and a 315% increase over first quarter 2006. The increase in sales is a result of the Company's improved cash position and its ability to obtain PV modules, although still on a quota basis.

Gross Profit

Gross profit for the three months ended June 30, 2006 was $78,616 compared to $75,571 for the same period in 2005. Gross margin (gross profit divided by sales) declined slightly from 28.4% in second quarter 2005 to 25.9% in 2006. The Company expects to maintain gross margin levels over the balance of 2006 consistent with the first half of 2006 as recent capital raising activities provide the cash to buy inventory in larger quantities and obtain better pricing from suppliers for such inventory.

Expenses

Expenses for the three months ended June 30, 2006 were $494,405 compared to $369,067 for the same period in 2005 and $668,479 in the first quarter of 2006. The Company's focus in 2006 has been to continue its commitment to the U of T PV Research Program, initiate the Solar Grade Silicon Development Program and raise additional capital in order to sustain operations.

Research and development expenses were $95,141 in the second quarter of 2006 compared to $130,750 for the same period last year and $194,387 for the first quarter of 2006. The Company has now fulfilled its cash funding obligations under the Research Collaboration Agreement with the U of T and CMM resulting in lower expenses related to that program in spite of increased activity levels since May 2006. Expenses in the current quarter are primarily for the initial funding of the Solar Grade Silicon Development Program in advance of completing the Contribution Agreement with SDTC. The Company has also hired additional resources to advance the U of T PV Research Program.

General and administrative expenses for the second quarter of 2006 were $344,495 compared to $185,657 in 2005, and $390,686 in first quarter 2006. The increase over 2005 was a result of higher payroll and consulting costs related to strengthening the management team, the introduction of an incentive bonus program for all staff, increased travel expenses and higher stock based compensation costs.

Selling and marketing expenses were $54,118 in the second quarter of 2006 compared to $50,324 for last year and $82,754 in the first quarter of 2006. The decrease from first quarter 2006 was a result of bonus accruals in first quarter for payroll delays.

2006 (preliminary)Previous releaseSpending on industrial research and development (R&D) will edge up this year, according to reported intentions.

Canadian companies will spend an estimated $14.9 billion on R&D, up 1.3% from the preliminary figure for 2005.
Manufacturers will spend an estimated $8.3 billion, up 2.2% from 2005, compared with just under $6.0 billion in the services sector, which would be virtually unchanged.

R&D spending in manufacturing is still recovering from a 3.4% decline between 2002 and 2003. Most of this decrease occurred in the information communications (ICT) sector, in particular, communications equipment.

At the height of the high-tech boom in 2001, R&D spending by ICT industries represented 46% of industrial R&D. In 2006, this proportion would drop to just under 40%. Communications equipment manufacturers would account for about 11% of total R&D spending in 2006, down from 15% in 2002.

Despite this year's forecast gain in R&D spending in manufacturing, the sector's share of total industrial R&D has fallen, from 61% in 2002 to an estimated 56% in 2006.

On the other hand, the services sector's share has increased from 35% in 2002 to 40% in 2006.

Within the services sector, the group showing the strongest rise in its share of total industrial R&D spending is information and cultural industries. Its share is expected to double from 5% in 2002 to 10% in 2006.

CAMBRIDGE, ON - ATS Automation Tooling Systems Inc. reported its financial
results for the first quarter of fiscal 2007 (three months ended June 30, 2006).

Highlights
- Consolidated earnings from operations were $5.6 million on revenue from
continuing operations of $190.9 million, compared to a loss from
operations of $1.3 million on revenue of $210.8 million in the fourth
quarter of fiscal 2006.
- Changes in effective foreign exchange rates reduced consolidated
revenue and consolidated operating earnings for the quarter ended
June 30, 2006 compared to the same period of fiscal 2006 by an
estimated $19.4 million and $5.9 million respectively.
- Automation Systems Group operating margins were 2% in the first quarter
of fiscal 2007 compared to 3% in the fourth quarter of fiscal 2006.
Operating earnings were $2.8 million on sales of $121.8 million in the
first quarter.
- Photowatt International achieved record operating earnings in the first
quarter of $10.0 million - up 51% and 61% from the first and fourth
quarter of fiscal 2006, respectively. Revenues were 3% and 11% higher
compared to the first and fourth quarter of fiscal 2006, respectively.
Excluding the effect of foreign exchange, revenue and operating
earnings increased 15% and 69%, respectively, compared to the first
quarter of the prior year.
- Photowatt Canada's operating loss, decreased to $4.4 million in the
first quarter from $7.6 million in the fourth quarter of fiscal 2006
reflecting the new focus announced in May.
- PCG operating earnings were $0.9 million, a significant improvement
from the $0.1 million in the fourth quarter of fiscal 2006 and the
$1.0 million operating loss in the first quarter of fiscal 2006.

Management Commentary

"ATS made substantial headway in advancing our solar business and
executing our strategic initiatives in the first quarter," said Ron Jutras,
President and CEO. "To date, these initiatives are responsible for the record
performance at Photowatt International, substantial turnaround within our
Precision Components Group, and strong performance gains within our US West
Coast and certain other ASG operations. While tangible progress is being made,
we have not yet fully realized the substantial benefits we expect to see over
time from our broad-based improvement strategies. In particular, more progress
is needed at our flagship ASG facility in Cambridge to effectively offset
foreign currency pressures and the impact of a challenging North American
automotive market."

Solar Developments

Capacity Expansion: Photowatt Technologies benefited from the addition of
capacity which came on line in the second half of fiscal 2006 at its Photowatt
France operation, combined with strong market demand. New production equipment
is now beginning to arrive as part of its current expansion announced in May
2006. This program will increase total, annual capacity of Photowatt
International to an estimated 60 megawatts and is expected to be on line by
the end of fiscal 2007.

Silicon Supply: Photowatt Canada has commenced shipments to Photowatt
France of solar-grade silicon (polysilicon) manufactured using its proprietary
conversion process. Photowatt Canada expects to deliver 70 tonnes of
polysilicon to Photowatt France in fiscal 2007. Photowatt Technologies also
successfully secured additional silicon from traditional sources during the
first quarter. As a result, management believes it now has silicon secured for
the majority of its planned capacity into the second quarter of calendar 2007.
In addition, Photowatt France has now successfully manufactured 70,000
solar cells - with an average efficiency of over 12% - that were made entirely
from refined metallurgical-grade silicon. With this technology advancement,
management believes it has additional flexibility to utilize its capacity in
this period of polysilicon shortages.

Spheral Solar(TM) Technology: As announced in May 2006, Photowatt Canada
continues to work on further in-depth engineering and process development on
its Spheral Solar(TM) technology. SRI International (formerly Stanford
Research Institute) a leading research and development group has been engaged
to assist in the effort to achieve reliable outputs at the desired efficiency
level.

Company Significantly Increases Capital, Reduces Interest Expense, Extends Maturities

PLANO, Texas - As part of a plan to significantly reduce Safety-Kleen's annual interest expense and enhance the company's capital structure, Safety-Kleen HoldCo., Inc., has completed a major recapitalization of the company.

Under the recapitalization, which included a $100 million rights offering
to purchase the company's common stock and a new, six-year $395 million debt
facility, Safety-Kleen eliminated its senior subordinated debt, repaid its
current bank credit facilities issued in 2005, and redeemed its preferred
stock. The new debt facilities significantly increase the company's financial
flexibility and reduce interest obligations going forward.

"This is a very significant step in enhancing Safety-Kleen's current
financial strength and future profitability," said Frederick J. Florjancic,
Jr., the company's President and Chief Executive Officer. "This transaction
restructures our long-term debt, which saves $27 million annually in interest,
and allows us to continue increasing our profitability and consider
acquisitions as part of our growth strategy."

Florjancic noted that 97 percent of the holders of the company's common
stock elected to participate in the rights offering and purchase additional
equity in the company.
"We see that as a strong vote of confidence in Safety-Kleen's future,"
Florjancic said.

The new financial package includes:
* $230 million term loan;
* $65 million letter of credit facility;
* $100 million revolving credit facility, with no money drawn at
closing; and,
* $100 million expansion feature.

"The company's improving operational results over the past 24 months have
allowed us to refinance our debt on two occasions," said Dennis McGill,
Safety-Kleen's Executive Vice President and Chief Financial Officer. "That
has eliminated approximately $45 million in annual interest obligations, which
now gives us access to up to $200 million for strategic growth opportunities."

"Our ability to complete this recapitalization, which was enhanced by the
solid credit ratings recently issued to Safety-Kleen by Standard & Poor's and
Moody's, is a very clear indicator that this company is getting healthier and
stronger every quarter," McGill added.
Standard & Poor's and Moody's issued "BB-" and "B1" ratings, respectively,
to Safety-Kleen in June, and noted that the ratings are stable.
JP Morgan Securities and Credit Suisse Securities were co-lead arrangers
of the Safety-Kleen refinancing.

GE Advanced Materials, Silicones today announced the launch of NXT Z(a) silane, a breakthrough material that helps manufacturers of silica tires reduce production costs, virtually eliminate ethanol emissions and produce a higher
performing tire.

The latest in the GE family of NXT silane materials, NXT Z silane
facilitates mixing silica with rubber for silica tire treads, without
generating ethanol during the compounding and manufacturing steps. In
addition, NXT Z silane helps to reduce manufacturing costs by enabling
single-step mixing, using temperatures as high as 170 degrees
Centigrade without causing viscosity increase or premature
vulcanization. NXT Z silane is an excellent candidate to enable tire
manufacturers to enhance the wear, traction and rolling resistance
properties of silica tires and also to reduce ethanol emissions over
the life of the tire.

"NXT Z silane provides the capabilities the tire industry needs to meet
a wide range of product performance objectives in ways that help
control production costs and meet environmental objectives," said Mike
Stout, global marketing manager. "At GE, we're committed to ensuring
that tire manufacturers aren't forced to choose between production
efficiency, product performance, and environmental stewardship. With
NXT Z silane, they can achieve all three objectives."

In addition to NXT Z Silane, the GE family of NXT silane coupling
agents for use in silica tire manufacturing includes NXT, NXT LowV(a)
and NXT Ultra-LowV(a) silanes that also eliminate non-productive mix
steps, help improve through put during manufacturing and help improve
tire properties like rolling resistance and wet traction.

The NXT silane family of breakthrough coupling agents has been
certified for official status as part of the GE ecomagination(sm)
program because of their ability to help tire companies streamline
their manufacturing processes in ways that reduce, equipment, labor and
energy costs, while moving in a positive environmental direction.
Announced in May 2005, ecomagination is GE's strategic initiative to
address society's challenges such as the need for cleaner, more
efficient sources of energy, reduced emissions and abundant sources of
clean water in ways that enable both GE and its customers to be
successful businesses.

A technical paper describing the capabilities and properties of NXT Z
silane will be presented at the International Tire Exhibition and
Conference (ITEC) being held in Akron, Ohio, September 12-14, 2006.

For more information about NXT silanes, or to receive a sample, visit
www.ge.com/silicones or call at 800.295.2392 (outside the US, call
+607.786.8131). To find out more about GE's ecomagination initiative,
visit www.ge.com/ecomagination.

Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were down 0.4% from May to June. Lower prices for primary metal products and lumber products were the major contributors to this monthly decrease.

The 12-month change in the IPPI was up 2.2%, down slightly from May's year-over-year increase of 2.5%. Upward pressure came mainly from higher prices for petroleum products and primary metal products.

Following a 5.8% increase in May, the Raw Materials Price Index (RMPI) was down 2.5% from May to June, due primarily to lower prices for non-ferrous metals and crude oil.

Compared to June of last year, raw materials cost factories 14.7% more, down significantly from the year-over-year change of 23.6% in May.

The IPPI (1997=100) stood at 113.7 in June, down from 114.2 in May. The RMPI (1997=100) reached 166.2, down from a revised level of 170.4 in May.

IPPI: Prices for primary metals and lumber products decline

On a month-over-month basis, manufacturers' prices were down 0.4%, mainly due to lower prices for primary metal products as well as lumber products.

Prices for primary metal products declined 5.3% compared to May, a sharp contrast to the 6.9% and 6.7% increases recorded in May and April. Lower prices were observed for primary copper products (-14.0%), primary aluminum products (-7.8%), primary nickel products (-6.5%), refined zinc products (-11.4%), silver products (-19.5%) as well as refined gold products (-14.1%).

Lumber and other wood products were down 1.5% from May to June, mainly due to a decline in demand as well as a slowdown in construction. Prices for fruit, vegetable and feed products also declined in June.

However, petroleum and coal products prices increased by only 0.6% compared to May, a slight drop from the 0.9% increase a month earlier. If petroleum and coal product prices had been excluded, the IPPI would have decreased 0.6% rather than 0.4%.

Prices for pulp and paper products, metal fabricated products, meat, fish and dairy products as well as rubber, leather and plastic fabricated products also increased in June.

IPPI: Petroleum and primary metal products remain the major contributors to the 12-month change

On a 12-month basis, the IPPI was up 2.2% in June, a slight decrease from the year-over-year change of 2.5% in May.

Prices for petroleum and coal products rose 20.1% from June 2005, down from May's increase of 25.4%. If petroleum and coal product prices had been excluded, the IPPI would have increased 0.3%, rather than 2.2% from a year ago.

Prices for primary metal products were up 15.5% compared to a year ago. Higher prices on a year-over-year basis were observed for copper products (+75.8%), refined zinc products (+115.1%), aluminum products (+19.7%), silver products (+26.3%) and gold products (+21.6%).

Prices were also higher than one year ago for rubber, leather and plastic fabricated products, chemical products, non-metallic mineral products, tobacco products, metal fabricated products and furniture and fixtures.

On the othe