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Suntech Closes Acquisition of MSK Corporation

WUXI, China, Aug. 14 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells, announced today that it has closed the first-step of its acquisition of MSK Corporation, previously announced on August 2, 2006 and is proceeding with the integration of the two companies.

By completing the first step of the two-step cash and stock transaction acquisition, Suntech has acquired a two-thirds equity interest in MSK for $107 million in cash.

"We believe that this acquisition brings significant benefits to Suntech, including an extensive PV module sales and distribution network in the key Japanese market and the advantage of MSK's leading product development and value-added PV solutions," said Dr. Zhengrong Shi, Suntech's Chairman and CEO.

Dr. Shi continued, "We have a strong integration plan in place and expect both companies will benefit from synergies generated by combining many overlapping areas of our operations, from manufacturing, sales, and purchasing to R&D and back office functions including financial management and IT."

Upon closing of the second step of the acquisition, which is expected to occur by the end of 2007, Suntech will acquire all or a substantial portion of the remaining interest in MSK for a consideration based on MSK's ability to achieve certain financial targets. If Suntech acquires 100% of the remaining interest in MSK, the range of consideration for the second step is $53 million to $193 million in the form of Suntech shares. The first step of the transaction was financed through a one year bridge loan.

About Suntech

Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by production output of solar cells in 2005. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's customers are located in various markets worldwide, including Germany, Spain, China and the United States. For more information, please visit http://www.suntech-power.com .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among others, statements regarding Suntech's beliefs and expectations about the expected benefits of the acquisition of MSK, including without limitation, the statements that such acquisition would give Suntech the advantage of MSK's nationwide sales and marketing platform in Japan as well as the advantage of MSK's leading product development and value-added PV solutions, and the expected synergies from combining the two companies, are forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. Suntech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For more information, please contact:

    SUNTECH

    In China:
    Cindy Shao
    Suntech Power Holdings Ltd.
    Tel: +86 510 8534 5000
    Email: ir@suntech-power.com

    Philip Lisio
    Ogilvy Public Relations Worldwide
    Tel: +86 10 8520 6550
    Mobile: +86 1350 1166 560
    Email: philip.lisio@ogilvy.com

    In the United States:
    Thomas Smith
    Ogilvy Public Relations Worldwide
    Tel: +1 212 880 5269
    Email: thomas.smith@ogilvypr.com
SOURCE  Suntech Power Holdings Co., Ltd.
    -0-                             08/14/2006
    /CONTACT:  In China: Cindy Shao, Suntech Power Holdings Ltd., +86-510-
8534-5000, ir@suntech-power.com ; or Philip Lisio, of Ogilvy Public Relations
Worldwide, Tel: +86-10-8520-6550, or Mobile: +86-1350-1166-560, or
philip.lisio@ogilvy.com ; or In the United States: Thomas Smith, of Ogilvy
Public Relations Worldwide, +1-212-880-5269, or thomas.smith@ogilvypr.com /
    /Web site:  http://www.suntech-power.com /
    (STP)

CO:  Suntech Power Holdings Co., Ltd.; MSK Corporation
ST:  China
IN:  OIL
SU:  TNM

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9667 08/14/2006 09:23 EDT http://www.prnewswire.com