SOURCE: Solar EnerTech Corp.

July 31, 2006 17:00 ET

Solar EnerTech Corp. Announces Power Quality Software Development

MENLO PARK, CA -- (MARKET WIRE) -- July 31, 2006 -- Solar EnerTech Corp. (OTCBB: SOEN) (the Company) wishes to announce that it has moved ahead in its strategic planning and formed a software products team under the direction of the company's Research and Development Division in order to capitalize on a new and growing area in the renewable energy sector.

The opportunity arises from the proliferation of alternative energy producers utilizing a variety of systems to generate and supply electricity to commercial grid-based power distribution networks. The Company has identified a need by the renewable power sector for cost effective, efficient and standardized power conditioning equipment capable of providing universally compatible, regulated power to the grid operators.

Solar EnerTech believes it can, through a software system, rapidly develop a variety of power conditioning solutions suitable for renewable energy producers that generate direct current (DC) electricity converted into alternating power (AC) which then need further conditioning to meet the requirements of commercial grids.

Company management has also entered into negotiations with the intent of acquiring a company specializing in power-quality control hardware that would provide an initial product line compatible with the proposed software solution.

The opportunities for new software management solutions encompass a wide variety of power quality issues emanating from renewably generated energy systems including load and voltage fluctuations, phase balancing, harmonics and transient shifts along with many other related transmission factors. Additionally, the ongoing proliferation of new alternative energy sources creates a shift in grid management that necessitates an ability to react to varying sources with increased efficiency.

The proposed software package is designed to analyze and act on power issues at the point of generation regardless of the type of renewable energy utilized. The design employs proprietary algorithms to analyze real time data from key sensors and to respond with downstream hardware control commands thereby treating the electrical output prior to distribution to the local grid.

Solar EnerTech believes that in many instances power from alternative sources such as wind or solar may not meet world's commonly accepted power quality standards making power conditioning solutions a growing opportunity. The company's decision to develop power management software is a significant step into a global niche sector that will cultivate a vital link between renewable energy generation and existing grid transmission providers.

The company continues to move rapidly towards the completion of its manufacturing facility in Shanghai with all milestones on target. The decision to establish the software development team is a timely strategic move enabling the company to position itself as a provider of grid-bound application solutions in conjunction with its core solar cell manufacturing business. Beta testing for the software is currently projected for early November of 2006.

About Solar EnerTech Corp. (OTCBB: SOEN)

Solar EnerTech is a photovoltaic (PV) solar energy cell manufacturing enterprise based in Shanghai, China where the Company is establishing a sophisticated 42,000 square foot manufacturing and research facility in Shanghai's Jinqiao Modern Science and Technology Park. Solar EnerTech plans to invest in PV cell research to develop higher efficiency cells and 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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