SOURCE: SunSi Energies, Inc.

SunSi Energies, Inc.

August 30, 2010 09:48 ET

SunSi to Acquire New TCS Facility With 20,000 MT per Year Capacity

NEW YORK, NY--(Marketwire - August 30, 2010) -  SunSi Energies, Inc. (the "Company") (OTCBB: SSIE), a development-stage company engaged in the acquisition of trichlorosilane (TCS) production facilities in China, today announced that it has signed a Letter of Intent (LOI) with Wendeng He Xie Silicon Co. ("He Xie"), a trichlorosilane facility located in Weihai City, China, with an annual production capacity of 20,000 metric tons (MT).

Under the terms of the agreement, SunSi will acquire a 60% equity interest in the firm and also increase its capacity to a total of 60,000 MT per year. The existing shareholder of this company will contribute to the expansion in order to maintain its equity interest of 40% in the company, as well as provide not only the technology, but also the technical assistance and expertise for the construction, training and operation of the facility and its expansion. All of the current management and employees will remain in place. Due diligence and a full audit are already underway; SunSi expects the transaction to close within three months, with the expansion efforts beginning on March 2011 and ending in January of 2012.

He Xie is well-recognized in China for its high-quality TCS, which has helped form long and stable relationships with its customers. A combination of efficient operations and a strategic location for export renders the production facility very efficient and highly profitable.

Michel G. Laporte, Chairman and CEO, commented, "During the past few months, we have worked towards building our production capacity by targeting an existing acquisition of a solid TCS production facility that held a tactical position and expertise. He Xie offers everything we could have hoped for in a company."

Richard St-Julien, President of SunSi Energies Hong Kong Limited, further added, "This acquisition will mark a turning point for SunSi. It will substantially increase its revenues and profits as well as position our company as a leader in the TCS industry as we are working towards becoming the biggest TCS producer in China."

About SunSi Energies Inc. ("SunSi")

SunSi's goal is to acquire and develop a portfolio of high quality trichlorosilane producing facilities that are strategically located, and possess a potential for future growth and expansion. Through its wholly owned subsidiary SunSi Energies Hong Kong Ltd., SunSi has executed a definitive Distribution Agreement with Baokai that entitles SunSi to distribute and sell both within and outside China all of the TCS produced at the ZBC facility. This will enable SunSi to start earning revenues.

Relatively unknown, but essential to the solar industry TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for photovoltaic (PV) panels that convert sunlight to electricity for homes, businesses and farms. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. It is believed that SunSi will becomes the first and only "pure play" public company in the world focusing exclusively on the production and sales of TCS.

SunSi Energies Inc. is traded on the NASDAQ OTC Bulletin Board under the ticker SSIE. For additional information, please visit the Company's website: or call Michel G. Laporte at Tel: 646-205-0291.

Forward-looking Statements:

This news release contains forward-looking statements related to the future financial condition and results of SunSi's operations. These statements are based on current expectations and estimates about the trichlorosilane markets and industry in which SunSi operates, management's beliefs and assumptions regarding these markets, future growth prospects, the closing of the Baokai acquisition, the commencement of generating revenues in 2010, completion of other acquisition transactions and attaining an AMEX listing. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate. Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital and attaining the required number of shareholders to meet AMEX listing requirements, the price of TCS sold within China and outside of China, the level of production by the ZBC factory, and success in implementing productivity initiatives. Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.

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