SAN FRANCISCO, USA & WUXI, CHINA: Suntech Power Holdings Co. Ltd, one of the world's leading manufacturers of photovoltaic (PV) cells and modules, and PV Crystalox Solar PLC, a specialist multicrystalline solar wafer manufacturer, have signed an initial five-year silicon wafer supply agreement with predetermined prices and volumes.

Under the agreement, PV Crystalox Solar will supply Suntech with a total of 260MW of silicon wafers from 2008 to 2013.

Headquartered in Oxfordshire, England, Crystalox is a highly specialized wafer supplier to the world's leading solar cell manufacturers. The Group was one of the first to develop multicrystalline technology on an industrial scale, setting the industry standard for ingot production. Crystalox is currently developing a 1,800MT solar grade polysilicon production facility in Germany.

"PV Crystalox Solar is well recognized for its expertise in the production of silicon wafers, and we are very pleased to initiate this relationship. Aside from silicon, many of Suntech's key equipment and materials originate in Europe including PV cell and module manufacturing equipment, module backsheets and adhesives. This global sourcing strategy is reflective of our complete commitment to quality and supports our ability to deliver premium quality solar products," said Dr. Zhengrong Shi, Suntech's Chairman and CEO.

"With a strong demand outlook for 2009, the emergence of a number of high potential solar markets in Europe, and growing sentiment supporting the need for renewable energy, we are confident that the solar industry will sustain long term growth. We will continue to develop and diversify our silicon channels to ensure we have a stable base of raw material supply to support this industry growth," added Dr. Shi.

PV Crystalox Solar CEO Iain Dorrity said: "We are delighted to be working with Suntech. This new relationship with one of the world's leading solar energy companies is an important step in securing additional long-term supply agreements for PV Crystalox Solar in line with our strategy for growth."