MELBOURNE, FL --- PetroAlgae Inc., a developer of systems to derive biodiesel fuels from algae, announced it has closed on a $10 million capital raise through the sale of approximately 3.2 million of newly issued shares of common stock to two existing investors.

"The proceeds from this offering are expected to help finance the launch of PetroAlgae's most significant milestone to date, the commercialization of its first biodiesel product derived from algae," said Dr. John Scott, chairman of the board of PetroAlgae Inc. "As a result, 2009 could represent the breakthrough year not only for PetroAlgae but for the entire biodiesel and alternative energy markets."

PetroAlgae is commercializing new technologies to grow and harvest oil from algae.