Wednesday, May 28, 2008

Canadian Solar Inc. Announces Conversion Offer for Its 6.0% Convertible Senior Notes due 2017

JIANGSU, China, May 27 /Xinhua-PRNewswire/ -- Canadian Solar Inc.(''CSI'') announced today the commencement of an offer to holders of CSI's 6.0% Convertible Senior Notes due 2017 to convert their notes into CSI's common shares at an increased conversion rate. The conversion offer is intended to reduce CSI's ongoing fixed interest obligations, and to improve the trading liquidity of its common shares by increasing the number of outstanding shares of common shares available for trading. CSI believes that a successful conversion offer may also facilitate a greater access to the equity capital markets for CSI, including through future offerings of convertible notes or other equity linked securities, and enable CSI to capitalize on opportunities for future growth. As of May 27, 2008, $75.0 million principal amount of the notes were outstanding.

The conversion offer will expire at 5:00 p.m., New York City time, on June 24, 2008, unless extended or earlier terminated. Holders who validly tendered their notes before the expiration of the offer will receive an enhanced conversion rate for each $1,000 principal amount of notes, of 50.6073 common shares, which is the current conversion rate, plus $117.00 in the form of additional common shares at the volume weighted average price of CSI's common shares for the ten trading days from and including June 3, 2008 to and including June 16, 2008.

Details of the conversion offer are set forth in a conversion offer memorandum and other materials filed with the Securities and Exchange Commission today on Schedule TO and are available on the SEC's website at http://www.sec.gov. CSI has appointed Georgeson Inc. as information agent in connection with the conversion offer. Any questions or request for assistance or for additional copies of the conversion offer memorandum or related documents may be directed to the information agent at GeorgesonInc., 199 Water Street, 26th Floor, New York, New York 10038, (800) 223-2064. Piper Jaffray acted as CSI's financial advisor in connection with the conversion offer, and can be contacted at (877) 371-5212.

This press release is not an offer or solicitation for the conversion of the notes into common shares. The conversion offer is being made only through the conversion offer memorandum and related materials filed with the SEC. These materials contain important information that should be read carefully before any decision is made with respect to the conversion offer.

Suntech Powers Up Its Solar Wafer Supply

Suntech is improving its wafer supply in hopes of becoming a leading manufacturer of solar modules.

On Tuesday, Suntech Power Holdings bought a $98.0 million stake in Shunda Holdings, a China-based solar wafer manufacturer. Details of the minority acquisition weren't disclosed except that the stake was purchased from Actis, a private equity investor in solar markets, and Waichun Investment Fund.

Suntech also signed a 13-year silicon wafer supply agreement with a Shunda subsidiary on Tuesday for an annual supply of silicon wafers with total volume of seven gigawatts through 2020.

"We believe that these transactions accelerate Suntech's path to grid parity and significantly enhance Suntech's long-term cost competitiveness through better pricing and volume allocations," said Suntech chairman, Dr. Zhengrong Shi, adding that the investment was made possible by funds raised through a convertible notes offering.

Suntech was drawn to Shunda because of the proximity and capacity of the company's new polysilicon plant, currently under construction in Yangzhou, Jiangsu province, where it will begin producing solar-grade polysilicon.
Suntech said that although the silicon wafers supplied by Shunda this year won't be initially significant to overall supply , they replace expensive spot market silicon.

"With this long-term agreement, we are able to increase our silicon secured for 2009 by 50 megawatts to 800 megawatts of silicon with an average cost more than 20.0% below our average cost of silicon in 2007," Suntech said. Silicon is often measured by how many watts of power it can provide. One megawatt, which is equal to one million watts, can power about 1000 homes at any given time.