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Suntech Announces New 5-Year Silicon Wafer Purchase Agreement

WUXI, China, Dec. 18 /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 an agreement with Sunlight Group Inc. to purchase silicon wafers over a 5-year period. Sunlight is headquartered in the U.S. with China and Japan-based production. The contract provides for increased volumes over the course of the term at fixed prices for each year with an annual price review for each calendar year. Based on existing contract prices, the value of the silicon wafers to be supplied is approximately $366 million to $670 million.

''We are very pleased to enter into this agreement with Sunlight and look forward to a long term, strategic relationship with them. It is exciting to be able to secure yet another meaningful contract for silicon which will enable us to achieve our ambitious growth targets during a time of industry-wide silicon supply shortages. As all of these long term silicon supply contracts are priced measurably below spot market prices, we will see immediate cost savings when they take effect in 2007. Supply agreements such as these enable us to be among the fastest growing, lowest cost providers of PV products in the industry,'' said Dr. Zhengrong Shi, Suntech's chairman and CEO.

This agreement with Sunlight combined with recent deals with suppliers such as Comtec, MEMC and REC will enable Suntech to exceed its previous expectation that 70% of its wafer supply needs for its projected 2007 PV cell production output will be from fixed-price, multi-year contracts.

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 silicon supply agreement highlighted above 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:

     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
SOURCE  Suntech Power Holdings Co., Ltd.
    -0-             12/18/2006
    /CONTACT: Steven Chan, VP of Business Development of Suntech Power
Holdings Co., Ltd., +86-510-8531-8910, or ir@suntech-power.com; or Rory
Macpherson, Senior Associate of Ogilvy Public Relations Worldwide, +86-10-
8520-6553, or rory.macpherson@ogilvy.com, for STP /
    /Web Site:  http://www.suntech-power.com /
    (STP)

CO:  Suntech Power Holdings Co., Ltd.; Sunlight Group Inc.
ST:  China, Japan
IN:  CPR OIL UTI
SU:  LIC





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7093 12/18/2006 08:00 EST http://www.prnewswire.com