Second Phase of Strategic Cooperation Between the Two Solar Companies

Nitol Solar, an independent polysilicon producer, and Suntech Power Holdings Co., Ltd., one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that they have signed an agreement under which Suntech will acquire newly issued ordinary shares comprising a minority interest in Nitol Solar Ltd. for a total consideration of up to $100 million, subject to the satisfaction of certain conditions.

Nitol Solar is an independent polysilicon producer which already has a diversified customer base and current supply contracts with an aggregate value of $1.5 billion through 2015. Suntech entered into a multi-year first phase supply agreement with Nitol Solar in August 2007 for the supply of committed monthly volumes of polysilicon to Suntech from 2009 to 2015.

Nitol Solar has over 70 years experience in the chemical industry and is in the process of building a plant with a target production capacity of 3,700 metric tons of polysilicon in 2009, based in Siberia, Russia. The Group already produces commercial quantities of trichlorosilane gas, which is a key material used in the production of polysilicon. The investment will enable Nitol Solar to continue development of the plant, which is expected to be completed in 2009.

Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "Whilst there are many entrants in the polysilicon industry, we feel Nitol Solar is particularly well positioned due to its long heritage of chemical production. We are delighted to be strengthening our relationship with Nitol Solar at this important point in their development."

Dr. Shi continued, "Our strong financial base puts Suntech in an excellent position to build strategic partnerships to secure increasing quantities of high-quality polysilicon at prices that we believe will accelerate our progress towards achieving grid parity. These partnerships will also enable us to advance other initiatives to rapidly reduce the cost of solar including the implementation of our high efficiency technology into commercial production, capacity expansion and improvements in our operating efficiency."

Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "We are very pleased that Suntech has come on board as a minority shareholder. They are a high quality partner and well respected in the solar energy field. As we move towards completing the new polysilicon production facility, Nitol Solar is further set to enjoy a strong, independent future as a leading supplier to the solar industry."

Commenting on Suntech's corporate philosophy, Dr. Shi said, "One of the key principles of Suntech's corporate philosophy is a commitment to environmentally responsible manufacturing and compliance with environmental laws. We believe Nitol Solar has a similar commitment both in their current operations and development plans. With this mutual commitment and a common goal of producing grid parity solar products, we look forward to a healthy, long-term partnership with Nitol Solar."

Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "Our new polysilicon production facility will utilize advanced polysilicon production equipment and the mature Siemens production and recycling process to ensure the clean and safe manufacture of purified polysilicon. We look forward to playing an important role in the manufacturing of clean, renewable solar products."

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