SOURCE: Solar Thin Films, Inc.

Solar Thin Films, Inc.

June 23, 2009 10:27 ET

Solar Thin Films Proposed Subsidiary BudaSolar Ltd. Announces R&D Agreement With Bangkok Solar

Project Targets Low Cost 8% Efficient Micromorph Module

DIX HILLS, NY--(Marketwire - June 23, 2009) - Solar Thin Films, Inc. (OTCBB: SLTN) today announced that BudaSolar Ltd. has advised Solar Thin Films that it has entered into an R&D Cooperation Agreement with Bangkok Solar, Co. of Bangkok, Thailand, a major producer of amorphous silicon photovoltaic modules with over 50MW of current capacity. Solar Thin Films ("STF") and its subsidiary Kraft Elektronikai Zrt ("Kraft") have entered into an agreement with the shareholders of BudaSolar, which contemplates that Kraft will acquire 100% of the share capital of BudaSolar in exchange for 49% of the share capital of Kraft. Closing of the transaction is contemplated to occur in July or August 2009.

The goal of the BudaSolar collaboration with Bangkok Solar is to develop a micromorph module with a minimum 8% efficiency using a modified version of batch process technology currently developed, manufactured and marketed by both Kraft and BudaSolar. Both Kraft and BudaSolar believe that this level of performance provided through the inclusion of a microcrystalline layer ("micromorph product") could be of great benefit to potential customers as it is capable of increasing efficiency by as much as 30% percent more than currently available amorphous silicon modules.

"The results of the preliminary experiments we have made for confirmation of the development concept are really very promising," said Dr. István Krafcsik, CTO of BudaSolar, who played a key role in the production and installation of the Bangkok Solar production facility. "Just as the batch process has proved to be the most cost-efficient solution for the production of double junction amorphous silicon modules, so we expect a new modified version of that batch process to be the most cost effective solution for the production of higher efficiency micromorph modules."

The project, which will run through 2010, will also leverage work being completed under a separate contract awarded BudaSolar late in 2008 for micromorph research.

"The advantage of working together with Bangkok Solar is that we gain access to both a production scale environment, to complement our lab work, and are able to work collaboratively with a very experienced manufacturing team with years of experience using the batch process technology," noted Dr. Csaba Dücsõ, BudaSolar's Head of Technology Development.

Mr. Sompong Nakornsri, CEO of Bangkok Solar, stated, "This collaboration is key to the future strategy and profitability of Bangkok Solar. Under current market conditions, increasing the efficiency of our modules in the near future is critical. We share the opinion of BudaSolar that creating a product with a microcrystalline layer -- a micromorph product -- is the best way to achieve desired efficiency increases, while maintaining or even improving on the existing cost advantage of the batch-type process."

Peter Lewis, Group Vice President of STF's Thin Film and Equipment Division, commented, "We are glad to hear of BudaSolar's collaboration with Bangkok Solar, and believe this is a positive step towards further bringing down the production cost of photovoltaic systems in the very near future."

About Solar Thin Films, Inc.

Through its subsidiary Kraft Elecktronikai Zrt. based in Budapest, Hungary, Solar Thin Films (www.solarthinfilms.com) develops, manufactures and markets a complete line of manufacturing equipment for the production of "thin-film" amorphous silicon photovoltaic ("PV") modules. The Company sells both individual and "turnkey systems" to customers currently located in China, Spain and the United States and has produced equipment for installations in the U.S., Germany, Portugal, Taiwan, Greece and Spain. The Company's line of thin-film photovoltaic manufacturing equipment positions it to take advantage of the rapidly growing demand for solar modules and an expected market shift towards "thin-film" PV modules as part of a cost effective, "clean technology" energy solution.

About BudaSolar

BudaSolar (www.budasolar.hu) develops and markets "turnkey" solutions for the production of amorphous silicon photovoltaic modules.

About Bangkok Solar

Bangkok Solar (www.bangkoksolar.com), or BSC, is a subsidiary of Bangkok Cable seated in Thailand. BSC is the leading industrial amorphous silicon thin film manufacturer with 50MW of production capacity installed and a planned expansion to 100MW in 2010. Uniquely on the market, BSC has reached 7% efficiency at industrial scale using the amorphous silicon technology.

Forward-Looking Safe Harbor Statement

Statements in this news release regarding future financial and operating results, potential applications of the Company's technology, opportunities for the Company, and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements including: limited operating history, need for future capital and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in the Company's periodic reports, including Forms 10-K, 10-Q, 8-K, and other forms filed with the Securities and Exchange Commission ("SEC").

These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties.

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