SOURCE: Solar EnerTech Corp.

March 21, 2007 08:30 ET

Solar EnerTech Completes $17.3 Million Private Placement With Institutional Investors

MENLO PARK, CA -- (MARKET WIRE) -- March 21, 2007 -- Solar EnerTech Corp. (OTCBB: SOEN) (the "Company") is pleased to announce the final closing of its private placement with institutional investors in the amount of $9.0 million on March 19, 2007, bringing the total principal amount of Convertible Notes sold in its private placement offering to $17.3 million. Knight Capital Markets, LLC, a NASD member firm, acted as sole placement agent in connection with this offering.

The securities sold by the Company in the private placement offering consisted of $5,000,000 principal amount of Series A Convertible Notes and $12,300,000 principal amount of Series B Convertible Notes. Additionally, an aggregate of 7,246,377 Series A Warrants were issued to the purchasers of the Series A Convertible Notes and an aggregate of 21,578,948 Series B Warrants were issued to the purchasers of the Series B Convertible Notes. The shares of common stock underlying each of the Series B Convertible Notes and Series B Warrants have not been granted registration rights and may not be sold prior to the one year anniversary of their issuance date in accordance with Rule 144 of the Securities Act of 1933, as amended, unless otherwise registered. For a more complete description of the private placement offering, please see our Current Report on Form 8-K/A filed with the Securities and Exchange Commission ("SEC") on March 20, 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 25 Megawatt production line.

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 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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