SOURCE: Solar EnerTech Corp.

March 30, 2007 09:00 ET

Solar EnerTech Signs Long-Term Polysilicon Supply Contract

MENLO PARK, CA -- (MARKET WIRE) -- March 30, 2007 -- Solar EnerTech Corp. (OTCBB: SOEN) (the "Company") wishes to announce the signing of a long-term material supply contract with Jiangsu Photovoltaic Industry Development Co., Ltd. ("JPID") of China. The 10-year framework of the agreement is for the provision of polysilicon refined as semiconductor-grade material that will meet Solar EnerTech's initial needs as well as the Company's currently projected future demands.

Recently, reports have quantified the global solar industry as experiencing a high-growth curve over the past two years, which has driven the demand and prices for high-purity PV-grade silicon material sharply upwards. To date, this key cost factor, more than any other, has resulted in product costs that are either the same or higher regardless of the scale or efficiencies of manufacture. According to several reports, silicon feedstock shortages appear to be a constant factor until post 2009, when projected supply could finally meet with demand.

Reinforcing this, Michael Rogol, Managing Director of Photon Consulting, the consulting and research arm of trade magazine Photon International, stated that even the higher-than-expected growth in silicon production might not be enough to match the growth in demand. "Supply this year, at an extreme, is up maybe 50 percent, but demand is definitely growing faster than supply," he says. "Could that reverse eventually? Sure, it could happen, but not as long as grid prices keep rising and the government keeps putting strong incentives in place." Industry experts warn that a worldwide shortage of poly-crystalline silicon will not ease in 2008, as some expect, but could continue for at least another five years.

Against this background, the supply agreement announced today is a very timely strategic move for Solar EnerTech. The company is about to enter the next stages of growth with planned output to double up to 50Mw this year, and increase by stages to a further 80 Mw followed by 130 Mw in 2008 and 2009, respectively. JPID has provided information that shows they appear well on their way towards becoming the largest polysilicon manufacturer in China with proposed capacity of 2100 metric tons in 2008 and 5000 metric tons in 2009.

JPID, headquartered in Shanghai, is a subsidiary of Golden Concord Holdings Ltd. ("GCHL") of Hong Kong. The Group's integrated operations focus principally on the electrical generation sector and are comprised of traditional power and renewable energy development, and include investment and financing, power engineering design, and plant construction. GCHL currently owns and operates 22 power plants with total installed capacity of more than 3 millions kilowatts and encompass a variety of energy sources and technologies, including coal-fired, natural gas cogeneration, waste-to-energy and biomass power plants. Recently, Golden Concord has decided to enter polysilicon manufacturing in order to expand its operations across the energy sector. Discussions with Solar EnerTech and GCHL management have been ongoing since last March as both companies began to recognize the benefits a strategic alliance could bring.

Shipments of polysilicon material from JPID's manufacturing base in Xu Zhou are slated to begin in late July this year. The 10-year alliance framework includes additional joint efforts to resist future market volatility as well as implementing R&D programs on N-type silicon materials for solar cells. At this time, Solar EnerTech's long-term planning has identified that it may prove logistically beneficial for any future production expansion by the Company to be located in close proximity to JPID's manufacturing base.

More information will announced as it becomes available.

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

Contact Information