Yingli Green Energy and TUV Rheinland Sign Strategic Partnership MOU

Tuesday October 28, 5:00 am ET

BAODING, China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that it has entered into a memorandum of understanding (the "MOU") with TÜV Rheinland (Shanghai) Co., Ltd. ("TÜV Rheinland") to form a strategic partnership covering a range of quality control initiatives at the Company. Under the proposed strategic partnership, TÜV Rheinland would conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions. In addition, Yingli Green Energy and TÜV Rheinland intend to develop and implement technical training programs for Yingli Green Energy employees.

"We are pleased to announce our intention to develop a long-term strategic partnership with TÜV Rheinland," said Mr. Liansheng Miao, Chairman and CEO of Yingli Green Energy. "Yingli strongly believes that product quality is the fundamental foundation for creating sustainable customer satisfaction and loyalty, which we believe will continue to be one of the primary drivers of our success in terms of building a strong brand, achieving solid financial results and creating shareholder value. To support our aspirations to be a world-leading manufacturer of high-quality PV products we recognize the need to work with world experts to improve our quality standards and controls and we have selected TÜV Rheinland as our strategic partner."

"We appreciate Yingli's objective to enhance their quality standards and controls," said Mr. Gerhard Luebken, Managing Director of TÜV Rheinland Shanghai, "We are pleased to support Yingli in achieving their product quality aims by developing and delivering a range of services in cooperation with Yingli."

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW by mid-2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit www.yinglisolar.com.

Emei Semiconductor Material Put 500 Ton Polysilicon Production Line Online

2008 October 28th, Emei Semiconductor Material's 500 metric ton electronic grade polysilicon production line started mass production. In fact Emei Semiconductor Material began the trial production in September already.

Emei Semiconductor Material has plan to build three 1,500 metric ton polysilicon projects, the first project will begin production this December, the second will be completed by September 2009, the third project will be launched in 2009, and by the end of 2010 Emei Semiconductor Material will be able to produce 5,000 metric ton polysilicon per year.

Contract price of solar cells subject to possible price cuts for 2009

Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Wednesday 29 October 2008]

While contract supply prices of solar cells for 2009 currently stand at US$2.8-3.1 per watt, a few makers of solar cells in Taiwan and China have offered lower quotes in negotiating 2009 supply contracts in an attempt to win contracts and thus obtain advance payment (usually 5% of the contract value), according to industry sources in Taiwan. Consequently, Taiwan-based makers of PV (photovoltaic) modules that are already signing supply contracts plan to ask suppliers of solar cells to lower contract prices, the sources pointed out.

In addition, price drops in the spot market for solar cells have brought pressure on contract suppliers of solar cells to reduce contract prices, the sources indicated. Spot market prices of solar cells have fallen from US$3.8/watt at the end of August 2008 to US$2.8-3.0/watt currently, approximately the same as contract prices, and are expected to drop further, the sources indicated.

If spot market prices of solar cells slip to below contract prices with a large enough gap, PV module makers subject to supply contracts will be willing to sacrifice 5% advance payment (due to default in contract) and procure less expensive solar cells in the spot market, the sources explained.