Tuesday, September 11, 2007

JA Solar Secures a New Long-Term Wafer Supply Agreement and Revised a Major Supply Agreement to Support the Growth

September 10, 2007: 07:48 AM EST

HEBEI, China, Sept. 10, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today announced that it has entered a long-term wafer supply agreement with JiangSu Shunda Semiconductor Develop Co., Ltd. ("Shunda"). The Company also announced that it has revised the prepayment terms of its wafer supply contract with JingLong Group.

Under the terms of the Shunda agreement, Shunda will supply JA Solar with silicon wafers starting immediately. The monthly supply will increase through the duration of the 41-month contract. Total deliveries under the agreement can reach about 1.2GW. JA Solar will make a total prepayment of RMB 350 million (approximately US$46.4 million in three installments) for future deliveries.

Shunda is a wholly owned subsidiary of JiangSu Shunda Group Corporation located in Yangzhou, Jiangsu Province. JiangSu Shunda Group is a leading high-technology enterprise focusing on the PV market. The company's rapid expansion in recent years has enabled it to produce polysilicon, mono-crystalline ingots, and wafers. For more information please visit www.shundasolar.com.

Separately, in line with industry standards the Company has revised the monthly prepayment terms under its existing contract with JingLong Group. According to the revised contract, JA Solar made the full prepayment to JingLong Group of RMB 300 million (approximately US$39.8 Million) on August 31, 2007. JingLong Group will apply the prepayment against shipments to JA Solar on a ratio of RMB 10 per wafer shipped starting on January 1, 2008. As one of the primary suppliers of JA Solar, JingLong Group has shipped a total of 30.9 million wafers to JA Solar in the past twelve months.

"These contracts further strengthen our long-term wafer supply and will help enable us to meet the company's growth objectives as we work to satisfy ever-demanding market needs," said, Samuel Yang, Chief Executive Officer of JA Solar. "We will continue to work with our entire supply chain to build key strategic relationships to ensure product quality, supply stability and the economics required for us to sustain target growth and profitability."

About JA Solar Holdings Co., Ltd.

Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.

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