Solar EnerTech, Jiangsu Shunda in solar JV

MENLO PARK, USA: Solar EnerTech Corp. announced the establishment of a joint venture with Jiangsu Shunda Semiconductor Development Co. Ltd, a leading PV raw material manufacturer, to pursue solar expansion opportunities in the US region.

Jiangsu Shunda is one of the largest polysilicon and wafer manufacturers in China, with an annual production output of approximately 1,500 metric tons of polysilicon.

The US JV company, which will be called Shunda-SolarE Technologies, Inc., is expected to begin operating in early May of 2009. The joint venture is expected to utilize Jiangsu Shunda's strength in polysilicon and wafer supply and Solar EnerTech's advanced solar cell technologies as well as its resources in the US market. Overall, both parties believe the joint venture establishes a vertically integrated operation in the US market with services ranging from the production of polysilicon to ingots and wafers, to solar cells, panels and solar system installation.

Jiangsu Shunda and Solar EnerTech contributed $1.0 million and $0.7 million in cash respectively to the initial setup cost of the JV. Jiangsu Shunda will own 55 percent of the JV company, Solar EnerTech will own 35 percent and the management of the JV will own the remaining 10 percent. Yunda Ni, President of Jiangsu Shunda will serve as the JV Chairman of the Board, Leo Young, CEO of Solar EnerTech will serve as the Board's Vice Chairman. The Board of Directors will be comprised of five seats, three of which will be reserved for Jiangsu Shunda and two for Solar EnerTech. A Chief Executive Officer of Shunda-SolarE Technologies is expected to be identified in the near future.

Leo Young, CEO of Solar EnerTech, commented: "We are extremely pleased to establish this joint venture with Jiangsu Shunda, a highly successful polysilicon manufacturer in China. We have a compelling opportunity to penetrate the US market with the establishment of this JV. Solar EnerTech has strong R&D capabilities supported by an outstanding technical team, and a fully operational US office governed by experienced management whereas Jiangsu Shunda maintains a UL listing, which is instrumental in conducting large scale operations in the US market, and controls the upstream supply which can provide large volumes of silicon feedstock to the JV in order to secure sizeable contract orders in the growing US market. Together, we can more easily penetrate US solar opportunities and establish Shunda-SolarE as a leading brand recognized for high quality solar products and service. We plan on providing investors with additional information on this JV in the coming weeks and months ahead."

Ni, President of Jiangsu Shunda added: "The goal of this joint venture is to build market share in the U.S. and maximize profitability. There is great synergy between both companies as well as with myself and Leo. Together, we believe we have an excellent opportunity to expand our market presence in the U.S. We look forward to a successful venture together."