Dalu Group and Kunical International Group, Ltd. Announce Long-Term Polysilicon Supply Contract

Apr 02, 2008 (Hugin via COMTEX) -- -- Space Energy Corporation of Tokyo, Japan, Agrees to Buy Polysilicon Produced at Dalu's Polysilicon Production Plant in Hohhot, China

HOHHOT, CHINA--(Marketwire - April 01, 2008) - Dalu Group and their marketing partner, Kunical International Group, Ltd., have signed a long-term polysilicon supply contract with Space Energy Corporation.

An international delegation led by Mr. Toshinao Nimura, President of Space Energy Corporation (SEC), Japan, and Mr. Terry Kunimune, CEO of Kunical International Group Corp. (Kunical), visited the Dalu polysilicon production plant site in Hohhot, China. Mr. Tang Aijun, the mayor of Hohhot, and vice mayor, Mr.Wu Wenyuan, met with the guests. The delegation paid a visit to the Dalu Group headquarters in Nanjing. Mr. Houping Lu, CEO of Dalu Group, and other management members attended the reception of the visiting delegation.

During the meeting, Inner Mongolia Dalu Semi-conductor Material Co., Ltd., and Kunical International Group, Ltd., the exclusive marketing partner for Dalu, signed a 10-year supply contract with Space Energy Corporation. The agreement would enable SEC's wafer production to begin in 2010 at more than 150 MW, and have a projected capacity by the end of the agreement in 2019 of 1.3 GW per year.

"Dalu's polysilicon plant project introduced advanced polysilicon production technology and major equipment from Europe and the United States. Following its commencement, this project has drawn worldwide industry attention. During our visit, we have seen that the project is progressing quite well. We've now come to a mutually beneficial agreement for long-term cooperation with Dalu Group for the supply of polysilicon and we are looking forward to a successful strategic cooperation in the solar energy industry," said Mr. Toshinao Nimura, the founder and president of Space Energy Corporation.

Dalu's polysilicon production plant will be constructed in three phases with a final capacity of 18,000 tons per year. Work on Phase I began in September 2007, and will be put into operation by the end of 2009. Phase II capacity is 5,500 tons per year, and Phase III is 10,000 tons per year. The project is expected to be completed in five years, when the plant will become one of the major bases of polysilicon production in the world.

About Space Energy Corporation

Space Energy Corporation is one of the largest companies engaged in manufacturing wafers for photovoltaic industry in Japan. The company is committed to helping solve the global energy problem through continuous research and improvement in technologies. SEC is dedicated to helping create a cleaner planet for future generations to live in. SEC is investing technology and human resources to keep up with this phenomenal growth. Located in Tokyo, Japan, the company's goal is to establish, maintain and improve its position in the worldwide market through continuously investing in manufacturing facilities, securing supply flow. SEC's Web site URL is www.space-energy.co.jp.

About the Dalu Group

Located in Nanjing Jiangning District National-level High-Tech Development Zone, Dalu Group is a private energy investment company in high-tech industries including power system measurement and control, environmental protection, information technology and biotechnology. The company is now building the largest industrial base of coal, electricity, silicon, and solar energy in Inner Mongolia. Dalu Group's polysilicon production plant continues its work in the energy industry and is the first step in its growth into alternative energy technologies. The URL for Dalu's Web site is www.dalutech.com.

About Kunical International Group, Ltd.

Kunical International Group, Ltd. is one of the premiere suppliers of polysilicon recyclable materials. Originally founded in 1979, Kunical has been offering a wide range of products and services to the semiconductor, wafer fabrication, solar and silicon crystal growing industries. Kunical is a privately held company with long-term, established relationships with many of the major Poly silicon, wafer and Photovoltaic manufacturers around the world. From its processing facility, located in Burbank, California, Kunical supplies quality wafers of all types, dimensions and the company is capable of fulfilling specialized material requests directly from some of the major silicon manufacturers. Kunical also obtains silicon bulk materials from quality manufacturers around the world and its processing facility sorts this material to customers' specifications, in order to comply with their need for the highest quality materials. Kunical's updated Web site can be found at www.Kunical.com.