Interesting Development with Solar Integrated Technologies IncApril 30, 2007 11:17 pm
SOLAR INTEGRATED SIGNS PREFERRED SUPPLY AGREEMENT WITH UPC SOLAR TO PURSUE U.S.
SOLAR PROJECT DEVELOPMENT MARKET
London, UK, and Los Angeles, California, April 25, 2007 – Solar Integrated Technologies, Inc. (AIM:SIT.LN), a leading provider of building integrated photovoltaic (BIPV) roofing systems, announced today that it has entered into a preferred supply and cooperation agreement with UPC Solar Management, LLC, a developer of solar energy projects in the United States. Under the agreement, Solar Integrated will be the preferred supplier to UPC Solar of BIPV roofing systems and certain other thin film solar products, solar roofing installation services, and renewable energy management software systems for solar installations. UPC Solar will be Solar Integrated’s preferred developer for solar energy projects in the United States where the end customer prefers to purchase solar generated electricity under a long term power purchase agreement rather than purchase, own and operate the solar energy system directly.
Beyond raising equity capital, one of Solar Integrated’s primary objectives when the Company was reviewing strategic alternatives last year was to strengthen the Company’s platform to effectively compete for and profitably close business for structured finance solar roofing projects in the United States. As part of the Company’s December 2006 financing, Brian E. Caffyn joined the Company as Chairman of the Board of Directors. Mr. Caffyn brings significant experience to Solar Integrated in profitably structuring and developing renewable energy projects in the United States and Europe. Mr. Caffyn is the chairman and majority owner of UPC Solar, which is part of Mr. Caffyn’s UPC group of companies. UPC Solar has an experienced team of renewable energy project development professionals that are actively engaged in U.S. solar project development.
R. Randall MacEwen, President & CEO of Solar Integrated, stated: “When we closed our December 2006 financing, we communicated that we viewed the UPC Group as a significant accelerator to further grow our business and that we expected the UPC Group to be an important future customer. This preferred supply and cooperation agreement with UPC Solar is an important and tangible first step.”
Morten Sissener, President & CEO of UPC Solar, stated: “We are very excited to partner with Solar Integrated to aggressively pursue the growing market for solar project development in the U.S. Solar Integrated is a pioneer and leading provider of BIPV roofing systems, with a unique understanding of the solar roofing market, a high quality product offering, and an impressive list of reference accounts and blue-chip customers. We expect to close a significant amount of business with Solar Integrated in 2007.”
John M. Palumbo, Chief Financial Officer of Solar Integrated, added: “Having this strategic relationship with UPC Solar for U.S. structured finance projects will allow us to effectively serve an important and growing target market, while also allowing our management team to focus on improving the business fundamentals, including profitable revenue growth, gross margin expansion, managing overhead costs with discipline, tightly managing cash flow, and investing in the areas of the business that will drive additional growth.”
The preferred supply and cooperation agreement was approved by Solar Integrated’s board of directors, excluding Mr. Caffyn, Nicholas A. Wrigley and Frederik W. Mowinckel who did not participate in the relevant board discussions and did not vote on the relevant board resolution given their relationship with UPC, including as nominees of UPC to the Company’s board of directors. Any future commercial arrangements between Solar Integrated and UPC Solar will be similarly approved, and will constitute related party transactions within the meaning of the AIM rules.
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