OPEL Solar Asia, Ltd. Continues Growth in the China Market

Tuesday, Jun 21, 2011

OPEL Solar International Inc. (TSX VENTURE:OPL) ("OPEL" or "the Company"), a leading global supplier of high concentration photovoltaic ("HCPV") solar panels and other solar products including ground-based and rooftop tracker systems, today announced that the Company has closed on a second agreement for its HCPV panels and dual axis trackers. This success in penetrating the China Market comes six months since the formation of OPEL Solar Asia ("OSA"). OSA has signed an agreement with a second of the five national power utilities in China, for the supply and installation of OPEL's HCPV systems to be deployed in the region of Inner Mongolia in China. OSA is the joint venture ("JV") between our subsidiary, OPEL Solar, Inc. in the U.S. and Ecotech Environmental Technology Ltd. ("Ecotech") based in Hong Kong.

The agreement essentially doubles the number of HCPV panels and trackers to be delivered by OPEL and to be deployed in China this year. With more than 5MW in orders already received, this new agreement significantly exceeds the orders originally forecasted when the JV was formed. This new achievement by OSA in China reinforces our rapid progress in OPEL's long-term objective to penetrate the HCPV market in East Asia. Many experts believe East Asia, and especially China, will be the fastest growing CPV solar market in the world. The Central Government in China has already doubled the PV installation targets from 5 GW to 10 GW by 2015.

It is of particular significance that the second national utility is chartered with generating electricity, primarily, from renewable energy sources. After evaluating different alternatives in conjunction with one of the regional electric power design institutes, OPEL's HCPV technology was found to be the most efficient and suitable to meet their goals for solar generated energy.

The second agreement for solar systems will be delivered to a second of China's five major electric power companies. This accomplishment now brings on line for OSA two of the five major electric power companies. OPEL Solar's HCPV solar system was chosen again by a giant in the China power industry to be the primary system to continue to deliver clean energy to their customers. Deliveries are scheduled to begin in the second half of 2011 and be completed during 2012.

"This agreement represents orders that may come in the magnitude of tens of millions of dollars for our HCPV solar system. To date, our decision to form OPEL Solar Asia with our partner Ecotech has been met with strong success," said Leon M. Pierhal, CEO of OPEL Solar Inc. "We believe that our decision to form the JV significantly increases shareholder value for OPEL Solar in the form of accelerated growth and more profit from diversified geographies. Our optimistic outlook in the Asian market may be well justified."

Because Ecotech has an established network of local manufacturers, we expect to transition to more local manufacturing by OSA as volumes ramp. As manufacturing processes attain full efficiency, OSA is expected to assume full responsibility for manufacturing and installing complete HCPV utility grade solar farms.

Source: Market Wire