Canadian Solar Signs a 45 Million Euro Annual Sales Contract and Breaks Ground of a 250 MW Module Facility in Changshu, China

Jiangsu, China, May 29 /Xinhua-PRNewswire/
Source: Canadian Solar Inc. press release
http://phx.corporate-ir.net/phoenix.zhtml?c=196781&p=irol-newsArticle&ID=1007679

Canadian Solar Inc. ("the Company", or "CSI") (Nasdaq: CSIQ) today announced it has concluded a 2007 annual sales contract worth 45 million Euro with a leading German customer. CSI has already started to deliver to this contract in March, before official signing, due to immediate demand for the products.

Concurrently CSI held a ground breaking ceremony for the new 250 MW module manufacturing facility for its plant in Changshu, China, located about 100 km west from Shanghai. The first phase of the new facility is 20,000 square meter in area and is expected to be completed by November of 2007. When finished, the first phase facility will have a module production capacity of 250 MW. Construction is expected to start in June after receiving final building permits.

Dr. Shawn Qu, CEO of CSI, said, "We continue to execute our business expanding strategy as planned in order to support our customers' demands and forecasts. Our insistence on quality products and services is paying off. The strong demand we are seeing exemplifies CSI management's strategies of branding CSI as Tier-One in quality and to form long-term partnership with Tier-One distributors in every geographic market. This annual contract, with firm pricing and delivery schedules until the end of year, serves as another example of such a partnership which brings business security and visibility to both CSI and its customers."

Sixty-Seven Percent of China Solar Panel Manufacturers Plan to Raise Prices in 2007

HONG KONG, Feb. 8 Xinhua-PRNewswire-FirstCall

Sixty-seven percent of China's solar panel manufacturers plan to raise export prices in 2007, according to Global Sources' China Sourcing Report.

"Solar cell prices, which have increased by about US$0.30 per watt in the past two years, are expected to rise further, driving the cost of solar panels higher," said Global Sources general manager of Content Development, Michael Kleist.

"With margins at about five percent for many manufacturers, the market is expected to continue to be challenging in the months ahead."

Among surveyed solar panel manufacturers' top concerns and primary challenges for the next 12 months:

-- 56 percent cited higher raw material costs;
-- 20 percent said price competition;
-- 14 percent cited design copying/piracy; and
-- 10 percent said power and labor shortages.