SOURCE: The X-Change Corporation

October 19, 2010 04:00 ET

The X-Change Corporation Announces Closing of Acquisition of 21-Century Silicon, Start of Production on Back Orders

DALLAS, TX--(Marketwire - October 19, 2010) -  The X-Change Corporation (PINKSHEETS: XCHC) today announced that it has completed the acquisition of 21-Century Silicon, issuing 20 million shares of X-Change treasury stock for 100% of the stock of 21-Century Silicon. In addition, Dr. Bruce Li, President and Chief Technology Officer of 21-Century, announced that production had begun on the manufacture of solar-grade silicon metal for a 100-metric-ton order placed by Solar EnerTech.

Through its proprietary technology, processes, and methods, 21-Century Silicon has implemented its new process to manufacture solar-grade silicon metal at half the manufacturing cost, one-tenth the plant setup cost, and in one quarter of the plant setup time of its major competitors. 21-Century Silicon has filed a number of provisional patents applications to be followed up this coming year.

This cost advantage is meaningful at a time when high demand for solar-grade silicon metal has increased the market price. Two years ago, the market price for silicon had dropped to the $35 per kilogram range, forcing many former suppliers to withdraw from the market, unable to manufacture the material profitably. In recent months, the market price for polysilicon has increased to $60-70 per kilogram due to the lack of manufacturing capacity. In addition, the US has begun an investigation into China's pricing of solar materials on the US market. (See for "U.S. Trade Office to Investigate China's Practices on Solar, Wind Equipment" in The Solar Home & Business Journal.)

Dr. Haviland Wright, CEO of X-Change, announced that Dr. Bruce Li and 21-Century Chairman and CEO Peter Mei had joined the X-Change board of directors. "Mr. Mei and Dr. Li are highly experienced in the photovoltaic industry, and their knowledge of and deep presence in this industry will help position X-Change as a force in the silicon materials business. Dr. Li is highly regarded as a visionary, and his mini-mill strategy for the production of solar-grade silicon metal will enable us to compete aggressively in this rich and growing market."

Dr. H. Bruce Li founded 21-Century Silicon, Inc., in 2005 after he noticed sharp increase in the price of polysilicon for the photovoltaic industry. Dr. Li worked at Texas Instruments Labs in Dallas for sixteen years in various capacities. He possesses a broad background in chemistry, physics, colloidal materials, semiconductor process, fuel cell process and structure, and nuclear engineering. He holds a Bachelors Degree in chemical engineering from National Taiwan University and an M.S. and the Ph.D. degree in physics from Oklahoma State University.

Mr. Peter Mei has served in a number of executive positions, specializing in international marketing and sales for the semiconductor and silicon-fabrication industries. Mr. Mei served a 15-year career at Texas Instruments within the corporate R&D department. Prior to founding 21-Century Silicon with Dr. Li, Mr. Mei served as vice president of technical marketing for GlobiTech. He has also served as worldwide technology transfer manager for Texas Instruments, Siemens, and Infineon. Peter holds both MS and MS degrees in electrical engineering from Rutgers and National Taiwan University, respectively. Mr. Mei is a Senior Member of IEEE and is a respected leader in the DFW Green Energy Entrepreneurial community.

21-Century Silicon's core manufacturing technology is based upon a proprietary furnace design that manufactures solar-grade polysilicon at half the cost of conventional methods. Combined with its methods, 21-Century Silicon's manufacturing process is a revolution within the industry and will position the company as a major player within the solar supply chain. Known in the industry as 6N Silicon, the company's product meets the specifications of photovoltaic supply companies. 21-Century Silicon's manufactured product is 6N or 99.9999%+ pure polysilicon, and depending on customer demand, it is offered in either chunk or granular form. Typically, 21-Century Silicon offers its product in metric-ton quantities.

The market price for high-grade polysilicon is approximately $60 to $70 per kilogram.

In contrast to its competition, the company manufactures solar-grade silicon at a low cost, with minimal production time and with virtually no environmental hazards. The company is focused on meeting the supply needs of the solar industry while maintaining an environmentally friendly manufacturing process.

About The X-Change Corporation
XCHC is a manufacturing company in the "green" industries, founded in 1969 to create value for its shareholders by identifying, acquiring, and providing services for private companies that are good growth candidates.

Forward-Looking Statements
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. The X-Change Corporation does not undertake any duty nor does it intend to update the results of these forward-looking statements.

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