SOURCE: Solar EnerTech Corp.

December 28, 2006 09:00 ET

Solar EnerTech Inaugurates Joint R&D Lab With Shanghai University -- Reviews 2006 Year End

MENLO PARK, CA -- (MARKET WIRE) -- December 28, 2006 -- Solar EnerTech Corp. (OTCBB: SOEN) (the Company) is pleased to announce the inauguration of the much anticipated Joint R&D Lab facilities to be operated conjointly by both Solar EnerTech and Shanghai University during opening ceremonies held just prior to the Holiday Season.

A number of invited guests including Shanghai government officials, US Embassy Commercial Section officials, US and Canadian investment groups and media attended the opening ceremony. During the event Prof. Wang, Deputy President of Shanghai University, and Leo S. Young, president and CEO of Solar EnerTech, unveiled a nickel-plated plaque inscribed with the Joint R&D Lab's name in both English and Chinese.

The Joint Lab consists of three integrated research facilities located at the university's College of Science and Physics, as well as another at the College of Material Sciences, and lastly, at Solar EnerTech's production plant at Jinqiao Technology Park.

The planned areas of study include; (1) PV (photovoltaic) theory, thermo-physics, physics of materials and chemistry. (2) Research on efficient and ultra-efficient PV cells with high light-electricity conversion rates up to 20%-35%. (3) Environmentally friendly and high conversion-rate manufacturing technology of chemical compound film PV cell materials. (4) High-reliability, low-cost manufacturing technologies and equipment for thin film PV cells. (5) Key material development of new low-cost flexible film PV cells and non-vacuum technology. (6) Key technology and fundamental theory for third-generation PV cells.

The Joint Labs initiative comes as a direct outgrowth of California Governor Arnold Schwarzenegger's trade mission to Shanghai this past November. That mission focused on energy cooperation and provided the impetus that introduced Solar Enertech, a Silicon Valley-based company, towards founding its solar cell manufacturing plant in Shanghai. Management further determined to undertake a strategic R&D leadership role, aiming to increase its position in the development of future technologies and to develop a platform that could foster the participation of California-based Universities at some point in the future.

During the opening ceremonies, Solar EnerTech's CEO, Leo S. Young, emphasized the importance of the Joint Lab as a major attractant of qualified scientists and skilled technicians leading to the building of a human resource base of specialists for the solar industry. Professors are able to design their curriculum using advanced PV technology and equipment so that students can translate their first-hand knowledge on Solar EnerTech's experimental and production facilities towards the acquisition of valuable post-graduate experience. The joint initiative has already engaged, through an application and qualification process, eight Professors and more than twenty post-graduate students along with a large number of graduate students.

After guests and media observed Prof. Wang and Mr. Young conclude the contract-signing segment of the ceremonies, the visitors toured the Joint Lab's newly completed facilities. Many state-of-the-art items were on display including China's first 3DAP&TEM JEM-200CX analyzer, which examines nano particle components with its 3-D atomic probe and further analyzes how a given material's atomic arrangement can affect a solar cell's conversion rate. Also on exhibit was a brand new Laser Micro-Raman Spectroscope, which inspects semi-conductive materials and studies a variety of issues related to Si device fabrication. Dr. Ma, CTO of Solar EnerTech, very graciously conducted the tour and patiently explained the items of equipment one by one, including their research operations, and answered questions posed by the visitors.

US politicians and public officials were quick to demonstrate their support and commitment to renewable energy as Congresswoman Anna Eshoo (D-California) was the first to send a congratulatory message from Washington D.C. Other messages endorsing the initiative came from California Public Utilities Commission (CPUC) President Michael Peevey and Commissioner Rachelle Chong along with a message from the US Embassy. Event organizers also received faxed messages from Governor Arnold Schwarzenegger and Congressman Tom Lantos.

Solar Enertech plans to invest a total of $4 million dollars over the next five years in order to ensure the success of its newly created Joint R&D Lab. The program firmly places the Company at the forefront of PV research and development while offering significant strategic depth and singular advantages over its nearest competitors and further propels the Company towards a major role in the burgeoning solar energy industry.

Year End in Review

The Company is also pleased to provide a year-end report on the successful completion of key milestones the Company set out to achieve in 2006. Solar EnerTech has accomplished several critical objectives, significantly enhancing its ability to become a leading provider of solar photovoltaic cells in the thriving $11.2 billion solar power market. In recent months, Solar EnerTech successfully landed its first sales contract, began production of solar cells and modules at its new state-of-the-art manufacturing plant in Shanghai, opened a leading edge joint R&D center with Shanghai University, raised $5.6 million in funding, released a beta version of its power conditioning software, and laid the groundwork for an aggressive sales and marketing push in 2007.

In September Solar EnerTech made its first sale, executing a contract with Shangsheng Estate Development Co. of Shanghai to supply a 40kW solar module system worth approximately $350,000 at prevailing prices. The Company is tasked with the integration of the 40kW photovoltaic (PV) system into the flat-top roof and upper floors of the south and east façade of a new high-rise building under construction in Shanghai. Solar EnerTech will manufacture a Building Integrated Photovoltaic (BIPV) system, meaning the solar modules will integrate seamlessly into the building's original design. When PV panels are integrated during the construction phase, the incremental costs of the system are reduced and the building itself is provided with considerable cost-saving advantages such as reduced demand for peak electricity and reduced transmission losses. BIPV is one of the fastest-growing segments of the solar industry, and the Company plans to take advantage of this significant niche opportunity.

Achieving another major milestone, the Company began production of solar cells and modules at its leading edge manufacturing plant in Shanghai. Solar EnerTech began its solar cell and solar module production tests on November 23 as the first batch of solar modules rolled off its newly assembled production line. The Company celebrated this tremendous achievement by inviting Shanghai government officials to join the team members in witnessing the product launch. Guests and employees cheered as Solar EnerTech CEO Leo S. Young unveiled two dozen dark blue solar modules at the end of the Company's first production line. Each high conversion module represents 170 watts of quality-built solar electric power generating capability ready for delivery.

Solar EnerTech has taken major steps toward establishing a leadership role in solar technology research and development. As mentioned above, along with Shanghai University, the Company opened a Joint R&D Lab earlier this month. The solar technology lab consists of three integrated research facilities located at the university's College of Science and Physics, College of Material Sciences and at Solar EnerTech's production plant at Jinqiao Technology Park.

Also announced earlier this month, the Company raised $5.6 million in funding. Solar EnerTech intends to use the capital to complete its Shanghai-based manufacturing facility, acquire and install manufacturing equipment, fund its power conditioning software development and implement sales and marketing efforts to generate product sales. The funds were raised in December and consist of $5.1 million in equity private placements and $500,000 in convertible debentures which are convertible at a future date.

In related news, Solar EnerTech has engaged Knight Capital Markets LLC (KCM) on an advisory basis. KCM operates as a market-maker in the Nasdaq Intermarket™, the over-the-counter market for New York Stock Exchange and American Stock Exchange listed securities. The company is a broker-dealer registered with the SEC and a member of the Nasdaq Stock Exchange and NASD.

Accomplishing another strategic objective, the Company has beta-released its revolutionary power conditioning software. Solar EnerTech is developing proprietary software to enable alternative energy producers utilizing a variety of systems to generate and supply standardized electricity to commercial grid-based power distribution networks. The software is now in the active testing phase of the product lifecycle. The product employs proprietary algorithms to analyze real time data from key sensors and respond to system variables such as transients, harmonics, sags and swells of voltage fluctuation and phase imbalances, etc., in order to allow system integrators to treat the electrical output prior to commercial distribution. The Company is working to meet the increasing need to standardize the output of rapidly emerging and widely varying grid-bound renewable energy sources and provide a vital link between renewable energy generation and existing grid transmission providers.

Solar EnerTech will build on the accomplishments of 2006 to launch a major sales and marketing push. The Company operates a marketing, purchasing and distribution division in California's Silicon Valley. In October the Company sent a team of senior managers to California to analyze the regional and national solar industry marketplace, contact industry leaders, observe existing installations and showcase Solar EnerTech's ability to supply solar cells and modules. This month the Company announced that it will market its solar cell and panel products using the name "SolarE" as part of its brand identity.

Clean energy initiatives in the United States including the Federal Solar Energy Tax Credit Extension, the President's Solar America Initiative, California's One Million Solar Roof incentive program, and the bi-partisan congressional resolution establishing a "25% by 2025" renewable energy goal are spurring growth in the demand for solar power and opening up tremendous opportunity for Solar EnerTech to capture a healthy market share of the $11.2 billion solar industry. Solar EnerTech is extremely pleased to have reached such significant milestones in 2006 and looks forward to building on these accomplishments to achieve rapid growth in 2007.

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

Contact Information