Radiant Energy Corporation
TSX VENTURE : RDT

Radiant Energy Corporation

October 24, 2006 15:29 ET

Radiant Energy Corporation Completes Shares for Debt Transaction with GE Capital

PORT COLBORNE, ONTARIO--(CCNMatthews - Oct. 24, 2006) - Radiant Energy Corporation ("Radiant" or the "Company")(TSX VENTURE:RDT) developer and marketer of InfraTek® the environmentally friendly, patented, infrared pre-flight aircraft deicing system, announced significant progress in the Company's debt reduction program. The Company and General Electric Capital Corporation ("GECC") completed the settlement of a 12% unsecured debenture in exchange for common shares and the transfer of other assets to Radiant.

Conversion of the 12% unsecured debentures

The principal of US$250,000.00 was converted into 1,793,400 common shares (approximately CDN$0.25 per share) and the accrued interest equal to US$150,312.50 was written off. The net affect on after-tax profits to Radiant is a gain of approximately US$320,000.00. The common shares cannot be sold, transferred or hypothecated or otherwise traded in Canada until January 11, 2007. The ownership of the deicing facility in operations at Newark Liberty International Airport and an unassembled structure, heating units, control booth and other miscellaneous parts were transferred to Radiant at no cost from GECC.

Debt reduction program

As at July 31, 2006 the Company had US$16.8 million of debt outstanding. The exchange of the 12% debenture for common shares reduced the debt by $400,313. In September, the Company, GECC and three insiders being significant shareholders signed agreements whereby insiders of Radiant purchased the outstanding secured loans, including accrued interest equal to $5.3 million from GECC. The three shareholders completed an agreement with Radiant to write-off US$3.6 million of the debt in exchange for the Company to grant a conversion feature on the remaining US$1.75 million of debt into 13,300,000 common shares of Radiant. The net affect on after-tax profits is a gain of US$2.9 million and a reduction in debt of $3.6 million. The transaction is subject to acceptance by the TSX Venture Exchange. The Company received payment from a customer that allowed the company to reduce the debt by a further $1.0 million. The Company also extended an offer to the three 7.75% Series A Debenture holders to convert a total US$708,000 in principal and accrued interest outstanding into 3,228,442 common shares (approximately CDN$0.25 per share).

Re-filing October 31 Management Discussion and Analysis and Certifications

The MD&A originally filed on May 8, 2006, for the year ended October 31, 2005, was re-filed to include the section on Disclosure Procedures and Controls. On October 23, 2006, the Company re-filed Certificate 52-109F2 for the CEO and CFO for the interim periods ended January 31, 2006 and April 30, 2006. The Company was required to re-file the Certificates in a format acceptable to the Ontario Securities Commission.

Radiant has 60,985,217 common shares outstanding after the above transaction and trades on the TSX Venture Exchange (symbol RDT). The InfraTek Radiant Deicing System, the only FAA-approved for use, non-glycol based alternative to the conventional pre-flight ground deicing process. InfraTek offers substantial savings to airports and airlines by reducing treatment costs and by significantly reducing the negative environmental impact of glycol. The InfraTek Radiant Energy Deicing System is in use at Newark International Airport, and Rhinelander-Oneida County Airport, Wisconsin, with facilities recently installed or about to open at JFK Airport, New York and Oslo, Norway.

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant Energy Corporation, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information