NEW YORK & REYKJAVIK, Iceland--(BUSINESS WIRE)-- Glacier Partners Corp., a corporate advisory boutique focused on the geothermal energy sector, in conjunction with its Icelandic affiliate, Capacent Glacier, today announced they have served as financial advisors to Magma Energy Corp. (TSX: MXY) in its agreement to acquire an interest in HS Orka, one of Iceland's largest geothermal energy producers, from Geysir Green Energy.

Under the agreement, Magma will purchase a 10.78 percent equity stake in HS Orka for approximately US$25 million (in two stages). In connection with the purchase, Magma will also hold an option to acquire approximately 5 percent additional shareholding in HS Orka through a direct capital infusion of US$15 million. The companies have agreed to work jointly on further geothermal development both in Iceland and internationally.

"Magma's acquisition of a stake in HS Orka is a milestone for Iceland and recognizes the country's leadership in geothermal energy development," said Magnus Bjarnason, CEO of Glacier Partners. "Magma's investment represents not only the first strategic investment in Iceland since its banking system fell, but also the opportunity for Glacier Partners to serve as a catalyst for additional geothermal investment opportunities in Iceland and the U.S."

Charles Arrigo, Director with Glacier Partners, added: "As one of the world's largest geothermal centers, Iceland is a pioneer in effectively harvesting this energy source to supply 23 percent of the country's electricity supply and powers its large aluminum industry."

HS Orka is the largest privately owned energy company in Iceland, with installed geothermal power capacity of 175 MW. In addition, the firm generates 150 MW of geothermal energy for district heating. Expansions are planned that will increase HS Orka's geothermal power production to 425 MW by 2015.

The agreement is subject to approval by the TSX as well as other customary closing conditions. Closing of the transaction is expected to take place in September 2009.

About Glacier Partners/Capacent Glacier

Glacier Partners is a specialized corporate finance and advisory boutique focused on bringing value to geothermal energy and seafood industry clients. Formerly Glitnir Capital, Glacier Partners and its principals have played a prominent role in the U.S. geothermal market. The firm maintains a strategic alliance with major Nordic consulting group Capacent, through their joint-venture, Capacent Glacier in Iceland. In March 2009, Glacier announced a partnership with Pritchard Capital Partners, an energy investment bank and institutional financial services firm in the U.S.

About Magma Energy Corp.

Magma Energy Corp., a geothermal power company recently listed in Canada and founded by successful entrepreneur Ross Beatty, is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. The company currently has one operating power generation plant (Soda Lake, Nevada) and an extensive portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.

About Geysir Green Energy

Geysir Green Energy is the leading privately-owned geothermal development company in Iceland. Geysir's main assets include controlling stakes in HS Orka hf. and Iceland Drilling Ltd. The company has worked successfully at developing geothermal heating utility projects in China as well as geothermal energy projects in the US, Germany and the Philippines.

In New York - Glacier Partners Corp.

Ignacio Kleiman, 212-716-0111, ikleiman@glacierpartnerscorp.com

Charles J. Arrigo, 212-716-0120, carrigo@glacierpartnerscorp.com

or

In Reykjavik - Capacent Glacier hf.

Magnus Bjarnason, +354-895-4515, magnus.bjarnason@capacentglacier.is

Timothy Spanos - +354-895-4477, tspanos@glacierpartnerscorp.com

or

Media:

CJP Communications

Aimee Baxter, 212-279-3115 ext. 225, abaxter@cjpcom.com

Source: Glacier Partners Corp.

<<Business Wire -- 07/27/2009>>