TSX : AXY

VANCOUVER, June 1, 2011 /PRNewswire/ - Alterra Power Corp. (TSX:AXY) reports that its wholly-owned subsidiary Magma Energy Sweden AB has now closed the previously announced agreement to sell a 25% stake in its 98.5%-owned Icelandic geothermal power company HS Orka hf to Jarðvarmi slhf, a company owned by a group of 14 Icelandic pension funds, for ISK 8.06 billion (approximately US $69.8 million). Jarðvarmi will hold fulsome minority shareholder rights, including a right to purchase Magma Sweden's interest in HS Orka should it elect to divest its stake in the future.

Ross Beaty, Alterra's Chairman and CEO, commented, "I am very pleased to welcome these Icelandic pension funds into HS Orka as exceptional long term partners in its future. They will better enable development of the company's outstanding growth prospects through their very strong financial condition and their intimate knowledge of Icelandic economic and social conditions."

About Alterra Power Corp.

Alterra Power Corp is a leading global renewable energy company, formed in 2011 through the merger of Magma Energy Corp and Plutonic Power Corp. We produce 1,800 GWh of clean power annually from 191 MW of geothermal capacity in Iceland and Nevada, as well as 94 MW of run-of-river hydro and 73 MW of wind capacity in British Columbia. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators as well as the strong financial capacity to support our aggressive growth plans.

About HS Orka

HS Orka is the largest privately owned energy company in Iceland producing 9% of the country's power needs and 10% of the country's heating needs. Installed geothermal power capacity is 175 MW from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating. Expansions are planned that could increase HS Orka's geothermal power production to 405 MW by 2016.

Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, prospects for closing of the sales described in the Share Purchase Agreements, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations and HS Orka's plans to expand their geothermal power production, management's expectations regarding our growth, business prospects and opportunities and geothermal energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.

SOURCE Alterra Power Corp.

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