SOURCE: Legend Investment

March 16, 2006 08:28 ET

GiraSolar Secures Contract Estimated at $65m and Approves Forward Stock Split

DEVENTER, NETHERLANDS -- (MARKET WIRE) -- March 16, 2006 -- GiraSolar BV (OTC: LVCP) today announced that it has secured a four-year supply contract for critical components allowing the company to sell an additional $16.5 million of GiraSolar branded modules based on current pricing in each of the next four years.

Wieland Koornstra, Chief Executive Officer, said, "Despite the worldwide silicon supply crisis we are continuously increasing the flow of material through our company. We expect that this additional contract will enable our company to market almost 4MWp per year of additional GiraSolar brand module. The contract is for 15.45 MWp over the next four years. This volume contract is not only putting a firm foundation under our company activities for the next several years, but also covers the critical period for which the silicon supply crisis is expected to last. Further ongoing and successfully progressing negotiations with strategic industry partners will likely add even more volume, strengthening our base of operations and increasing opportunities for strong growth, with a focus on developing our position in the USA."

This contract with a major European cell manufacturer represents an anticipated total revenue value of approximately $65 million for the company over the contract period which extends from Q4 2006 into Q4 2010 and should enable the group to market almost 4MWp per year extra of its own GiraSolar brand of modules. The total revenue of $65M represents yearly revenue of approximately 16.5M$ per year for a period of 4 consecutive years starting in October 2006.

"Demand has been larger than we can supply for quite a while. We hope to reduce this unfulfilled volume in absolute terms, though demand is increasing faster than supply. Many new contract proposals received from clients cover multi MWp material requests until December 2007 or even December 2008. This is of course an excellent position to make investments in increased capacity," Koornstra continued.

Separately, the board of directors has approved a 5 for 2 forward stock split to be implemented as soon as possible.

This press release contains forward-looking statements within the meaning of federal securities laws. The Company cautions you that any statements contained in this press release which are not strictly historical statements constitute forward-looking statements. Such forward-looking statements include, but are not limited to, those related to Company's expectations regarding the anticipated benefits of the 15.45 MWp contract; the amount of revenue that can be derived from sales of GiraSolar branded products; the Company's plans regarding the solar power market; the Company's distribution capabilities; the Company's position in the solar power market; and the Company's future revenue growth, the Company's backlog of orders and demand for its products, and the Company's ability to achieve profitable operations. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, (copies of which may be obtained at the SEC's website at: http://www.sec.gov) -- could impact the forward-looking statements contained in this press release. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations, or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

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