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Suntech Announces 5-Year Silicon Wafer Purchase Agreement with REC

WUXI, China, Oct. 25 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP) one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has entered into a $180 million agreement with Renewable Energy Corporation ASA (Oslo Stock Exchange: REC), the world's largest manufacturer of multicrystalline silicon wafers for solar applications, to purchase silicon wafers over a 5-year period. Sumitomo Corporation is acting as REC's commercial representative for the deal.

''This agreement with REC and Sumitomo, together with our other long-term supply agreements, will enable Suntech to further reduce spot market purchases of raw materials and improve our cost competitiveness in the future,'' said Dr. Zhengrong Shi, Suntech's chairman and CEO. ''This agreement also enhances our strategic relationships with the world leading silicon and wafer manufacturers. Suntech will continue to pursue our goals to expand our market share and focus on our ongoing initiatives to make production and technological improvements to our cell and module products.''

The 5-year agreement is structured as a take-or-pay contract with a pre-determined fixed price that decreases on an annual basis. This price reduction curve will provide Suntech with wafers with an average cost measurably below spot market prices. The delivery of wafers under the contract is expected to begin in the first quarter of 2007.

''This is the fourth long term agreement on wafers that REC has entered into since summer this year. Suntech, which is one of the fastest growing solar cell and module companies in the world, will become a new valuable strategic customer of REC, and this agreement further cements REC's position as the leading manufacturer of multicrystalline silicon wafers and strengthens our platform for further growth,'' said Erik Thorsen, President & CEO of REC.

About REC

REC is uniquely positioned in the solar energy industry as the only company with a presence across the entire value chain. REC Silicon and REC Wafer are the world's largest producers of solar grade silicon and wafers for solar applications. REC Solar produces solar cells and solar modules.

About Suntech

Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. 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 majority-owned subsidiary, MSK Corporation is one of Japan's largest PV manufacturers and one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, Japan, China and the United States. For more information, please visit http://www.suntech-power.com .

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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 other things, Suntech's expectations with respect to the supply agreement with REC contain 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 filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

    For more information, please contact:

    In China:
     Steven Chan
     VP of Business Development
     Suntech Power Holdings Co., Ltd.
     Tel:    +86-510-8531-8910
     Email:  ir@suntech-power.com

     Rory Macpherson
     Senior Associate
     Ogilvy Public Relations Worldwide
     Tel:    +86-10-8520-6553
     Email:  rory.macpherson@ogilvy.com

    In the United States:

     Thomas Smith
     Senior Vice President
     Ogilvy Public Relations Worldwide
     Tel:    +1-212-880-5269
     Email:  thomas.smith@ogilvypr.com
SOURCE  Suntech Power Holdings Co., Ltd.
    -0-                             10/25/2006
    /CONTACT:  In China - Steven Chan, VP of Business Development of Suntech
Power Holdings Co., Ltd., +86-510-8531-8910, or ir@suntech-power.com; Rory
Macpherson, Senior Associate of Ogilvy Public Relations Worldwide,
+86-10-8520-6553, or rory.macpherson@ogilvy.com, in the United States - Thomas
Smith, Senior Vice President of Ogilvy Public Relations Worldwide,
+1-212-880-5269, or thomas.smith@ogilvypr.com, both for STP/
    /Web Site: http://www.suntech-power.com /
    (STP)

CO:  Suntech Power Holdings Co., Ltd.; Renewable Energy Corporation ASA
ST:  China
IN:  CPR ENV OIL UTI
SU:  ASI LIC





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8413 10/25/2006 08:00 EDT http://www.prnewswire.com