SOURCE: Solar EnerTech Corp.

March 08, 2007 08:00 ET

Solar EnerTech Closes $8.3 Million Private Placement With Institutional Investors

MENLO PARK, CA -- (MARKET WIRE) -- March 8, 2007 -- Solar EnerTech Corp. (OTCBB: SOEN) (the "Company") is pleased to announce the completion of a private placement with Institutional Investors for $8.3 million on March 7, 2007.

After the payment of fees and expenses of the private placement, the Company received net proceeds of approximately $7,664,000. The securities sold by the Company in the private placement offering consisted of $5,000,000 principal amount of Series A Convertible Notes, $3,300,000 principal amount of Series B Convertible Notes, 7,246,377 Series A Warrants and 5,789,474 Series B Warrants. Of the $8.3 million purchase price of the Notes, $300,000 consisted of the conversion of existing outstanding indebtedness of the Company. For a more complete description of the private placement offering please see our Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on March 8, 2007.

The Company intends to use the net proceeds of the private placement for working capital and general corporate purposes including, but not limited to, the purchase of silicon feedstock to fulfill recent purchase orders. Additional uses will include the purchase of equipment for the Company's second 25Mw production line.

The financing was prompted by increased demand for the Company's solar cell products. The construction of the Company's second 25Mw line is currently ahead of its originally scheduled mid-April launch date. At this time, the Company is running two shifts, one for solar cell production on the first line and the other for preparation of construction of the second production line.

Solar EnerTech President & CEO Leo Shi Young commented, "This direct investment in Solar Enertech enables the Company to fulfill on its recent purchase orders and begin the construction of the second 25Mw production line. We believe that the net proceeds that the Company has received from this financing will help the Company to execute on its business plan and accelerate the growth of its business."

About Solar EnerTech Corp. (OTCBB: SOEN)

Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise based in Shanghai, China, where the Company has established a sophisticated 42,000-square foot manufacturing plant in Shanghai's Jinqiao Modern Technology Park. This facility is capable of producing 25Mw of solar cells from its current production line and 50Mw when upon completion of the second line slated for Q4 of this year. Solar Enertech has also established a Joint R&D Lab at Shanghai University to research and develop higher efficiency cells and to put the results of that research to use immediately in its manufacturing processes. Led by one of the industry's top scientists, the Company's R&D program will work to bring Solar EnerTech to the forefront of advanced solar technology research and production. The Company has also established a marketing, purchasing and distribution arm in Northern California's Silicon Valley.

Forward-Looking Statements

Except for statements of historical fact, the information presented herein may contain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Solar EnerTech Corp. has little or no control.

On Behalf of the Board
Solar EnerTech Corp.
Leo Shi Young, President

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