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Suntech Reports Fourth Quarter and Full Year 2006 Financial Results

WUXI, China, March 12 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced fourth quarter and full year 2006 financial results.

    Fourth Quarter and Full Year 2006 Highlights
    -- Fourth quarter 2006 total net revenues went up 144.8% year-over-year to
       $217.9 million.  Non-GAAP(1) Suntech Group net income attributable to
       holders of ordinary shares grew 101.4% year-over-year to $35.5 million,
       or $0.23 per non-GAAP diluted American Depository Share (ADS).  Each
       ADS represents one ordinary share.
    -- Fourth quarter 2006 production output was 55.3MW; full year 2006
       production output was 160.1MW, representing 136.5% year-over-year
       growth.
    -- Full year 2006 total net revenues went up 165.0% year-over-year to
       $598.9 million.  Suntech Group net income attributable to holders of
       ordinary shares grew 275.6% year-over-year to $106.0 million, or $0.68
       per diluted ADS.
    -- Annual capacity grew from 150MW at the end of 2005 to 270MW at the end
       of 2006, representing an increase of 80%.

''We exceeded our initial fourth quarter output and revenue guidance for our core business as we increased our sales of PV modules, achieved sequential average selling price increases throughout 2006 and ramped up recently installed production lines ahead of schedule,'' said Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''Our operations are the healthiest they have been since our IPO as our low cost per watt strategy combined with our strong technology capabilities, expanding sales network and successful silicon procurement keep us on track to achieve industry leading growth.''

''During the quarter, we cemented our silicon supply for 2007 and beyond by signing additional long term, fixed price silicon supply agreements. In fact, we have secured more silicon than we require to meet our upwardly revised projected 2007 PV cell and module output target,'' said Dr. Shi. ''This ability to secure silicon, despite the global shortage, is one of the key reasons we have been able to increase our 2007 production output target from 250 megawatts to 280 megawatts and our year-end capacity target from 390 megawatts to 420 megawatts.''

Commenting on Suntech's international sales development, Dr. Shi said, ''In the fourth quarter, we continued to diversify our sales geographically and extended the reach of our global network. In addition to partnering with SunEdison, we continued to build momentum in the U.S. market and our current pipeline indicates that we will be able to more than triple our sales to this region in 2007. With the integration of MSK's sales network and the establishment of Suntech Europe, we have set the foundation to further expand our selling channels in key European markets such as Spain.''

    Recent Business Highlights
    -- In February 2007, Suntech closed an offering of $500 million
       convertible senior notes, more than 60% above the original offering
       size.  Suntech plans to use the net proceeds to expand production
       capacity, procure raw materials, repay a bridge loan related to the MSK
       acquisition and for other corporate purposes.
    -- Multi-year silicon supply agreements were entered into with REC, Comtec
       and Sunlight Group in the fourth quarter of 2006. Combined with
       existing agreements with MEMC and several leading China-based silicon
       suppliers, Suntech expects over two-thirds of silicon supply in 2007
       needed for its projected output will come from  long-term silicon
       supply agreements, which will ramp up over the year and have average
       wafer costs measurably below 2006 wafer purchase prices.
    -- After winning the contract to supply over 23MW of solar modules to the
       world's largest solar farm in Spain, Suntech continued to achieve
       steady sales wins in Spain.  In the fourth quarter of 2006, Suntech
       sales to Spain increased four-fold above the nearly 10% of total
       revenues in the first nine months of 2006 and it is currently expected
       that it will grow to be approximately 20% of total revenues in 2007.
    -- In February 2007, Suntech made the strategic decision to halt MSK's
       module production activities in Japan and initiated immediate actions
       to focus MSK on its three strategic goals.  MSK will concentrate
       efforts on BIPV product development and expanding BIPV sales into key
       geographies beyond Japan, growing Japan-based sales and utilizing MSK's
       sales organization to expand Suntech's customer base.
    -- Suntech recently entered into multiple sales agreements with Conergy AG,
       a leading global solar system integrator, to supply PV modules with a
       value of approximately $270 million in 2007.
    -- Suntech established Suntech Europe in January as part of a natural
       evolution to expand its customer base as well as to deepen the service
       and support offered to its customers in Europe, the Middle East and
       Africa (EMEA).  The headquarters for Suntech Europe will be in London
       with sales offices expected to be opened in key cities in the region
       commencing in 2007.
    -- Suntech recently joined the Global Roundtable on Climate Change (GROCC)
       to raise the profile of solar energy and encourage governments
       worldwide to develop effective policies on climate change.


    Fourth Quarter 2006 Group Results

    Income Statement Summary (In millions, except for per ADS data)


                          Suntech Group    Suntech Group    Suntech Non-GAAP
                              GAAP           Non-GAAP        Excluding MSK

    Net revenues             $217.9            $217.9            $190.3
    Gross profit               48.5              49.1              49.9
    Income from operations     29.7              34.2              38.6
    Net income                 31.4              35.5              37.8
    Net income per diluted    $0.20             $0.23             $0.24
    ADS

    Suntech Group Results for the Fourth Quarter of 2006 Excluding MSK

Suntech Group's net revenues excluding MSK for the fourth quarter of 2006 were $190.3 million, representing an increase of 28.2% sequentially and 113.8% year-over-year. Excluding MSK, Suntech recorded a non-GAAP gross profit of $49.9 million, representing an increase of 29.2% over the third quarter of 2006 and 100.8% over the fourth quarter of 2005. Non-GAAP gross margin excluding MSK, for the fourth quarter of 2006 was 26.2%, compared with 26.0% in the third quarter of 2006 and 27.9% in the fourth quarter of 2005. Gross margins excluding MSK in the fourth quarter 2006 increased slightly from the previous quarter. Excluding MSK, Suntech's non-GAAP income from operations for the fourth quarter of 2006 was $38.6 million and the operating margin for the quarter was 20.3%, compared with 21.3% in the third quarter of 2006 and 22.0% in the fourth quarter of 2005. The primary reasons for the higher operating expenses in the fourth quarter of 2006 were additional accounting expenses and bank fees due to the shift in sales to Letter of Credit-based payments and a foreign exchange mark-to-market loss. Excluding MSK, non-GAAP net income attributable to holders of ordinary shares for the fourth quarter of 2006 was $37.8 million, or $0.24 per non-GAAP diluted ADS.

    Breakdown of Fourth Quarter 2006 Net Revenues (Excluding MSK)


                          Q4 2006    % of Q4 2006 Growth vs. Q4  Growth vs. Q3
                       (in millions) Net Revenues      2005           2006
                                                         %              %
    PV Cells                $9.5          5.0         (70.1)         (76.2)
    Standard PV Modules    180.4         94.8         218.3           67.2
    PV System                0.4          0.2         (27.0)         (40.1)
     Integration,
    BIPV and Others
    Total                 $190.3         100 %       113.8 %         28.2 %

Suntech excluding MSK shipped 48.7MW of PV cells and modules during the fourth quarter of 2006; average sales prices for PV modules were $3.91 per watt compared with $3.86 per watt in the third quarter of 2006 and $3.49 in the fourth quarter of 2005. In the fourth quarter of 2006, Suntech strategically moved towards selling a higher percentage of PV modules than PV cells to capture the incremental revenue and reduce PV cell sales to module making competitors. This was made possible by the increased silicon wafer supply, which reduced Suntech's need to rely on wafer exchange or tolling agreements.

Suntech Group Consolidated Results for the Fourth Quarter of 2006 Including MSK

Suntech Group's non-GAAP gross profit for the fourth quarter of 2006 was $49.1 million and the non-GAAP gross margin was 22.5%. Non-GAAP income from operations for the fourth quarter of 2006 was $34.2 million and the non-GAAP operating margin was 15.7%.

Capital expenditures, which were primarily related to production capacity expansion, were $15.3 million in the fourth quarter of 2006. Depreciation and amortization expenses in the fourth quarter of 2006 were $4.9 million.

Suntech Group Consolidated Results for the Full Year 2006 Including MSK

Suntech Group's net revenues for the full year 2006 were $598.9 million, an increase of 165.0% year-over-year. For the full year 2006, Suntech Group derived approximately 20.8 % of total net revenues from sales of PV cells and 78.8% from PV modules.

Gross profit for the full year 2006 was $148.9 million, an increase of 117.2% over the full year 2005. Gross margin decreased to 24.9% in 2006 from 30.3% in 2005. Suntech Group's income from operations for the full year 2006 was $103.2 million, an increase of 142.0% year-over-year. Operating margin was 17.2% in 2006, down from 18.9% in 2005. Net income attributable to holders of ordinary shares for the full year 2006 was $106.0 million, an increase of 275.6% from 2005. Diluted income per ADS was $0.68 in 2006, compared to $0.30 in 2005.

Capital expenditures were $52.3 million in the full year 2006. Depreciation and amortization expenses in the full year 2006 were $11.9 million.

As of December 31, 2006, Suntech had cash and cash equivalents of $225.5 million compared with $314.2 million at the end of the third quarter of 2006. Short term debt rose to $288.2 million at the end of the fourth quarter of 2006 from $221.7 million at the end of the third quarter of 2006, primarily as a result of continuous leverage of banking facility to support expanding production scale and capital expenditures and cash flow management needs related to PRC foreign currency controls.

March Analyst Day

Suntech will host an Analyst and Investor Day in Hong Kong on Monday, March 26, 2007. The event will address all key aspects of Suntech's operations and vision to become the globally leading pure-play producer of solar energy products. For more information, please contact The Piacente Group at +1 212-481-2050 or via email at suntech@tpg-ir.com.

Outlook for First Quarter and Full Year 2007

Based on current operating and other conditions, Suntech expects its first quarter 2007 total production output, including contribution from MSK, to be in the estimated range of 60MW to 62MW and its total net revenues to be in the estimated range of $220 million to $228 million.

As the Company will have carryover spot market priced silicon supply from 2006 and as its silicon supply from its long term supply contracts will not become a majority of its silicon supply until the second quarter of 2007, the Company will likely have a slight decline in the gross margin in its core business in the first quarter of 2007 with stabilization and improvement expected in the gross margin of its core business thereafter.

Such guidance takes into account the assumption that Suntech's total PV cell production capacity will remain constant at 270MW until the second quarter of 2007 when additional capacity is expected to become operational. In addition, the first quarter 2007 guidance also takes into account the shorter month of February and the Chinese New Year holiday.

Suntech has increased its total PV cell production output target for 2007 from 250MW to 280MW. This target takes into account third party PV cell purchases originally contracted by MSK. Suntech has also raised its expected 2007 year end PV cell production capacity target from 390MW to 420MW.

Suntech expects capital expenditures for the full year 2007 to be in the estimated range of $80 to $100 million.

Given the accelerated integration between Suntech and MSK's business operations, Suntech will not continue to report separate results or give separate guidance for MSK in the future.

Conference Call Information

Suntech's earnings announcement conference call will take place on March 12, 2007 at 8:00a.m., Eastern Time, which corresponds to March 12, 2007 at 8:00p.m., Beijing/Hong Kong time. To access the conference call, please dial +1-617-614-3523 (for U.S. callers) or +852-3002-1672 (for international callers) and ask to be connected to the Suntech earnings conference call.

A live and archived webcast of the conference call will be available on the Investors section of Suntech's website at http://www.suntech-power.com .

A replay of the conference call will be available until March 26, 2007 by dialing +1-617-801-6888 (passcode: 99523904).

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 a pioneer within the higher value-added 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. In particular, the projected first quarter and fiscal year 2007 data, regarding production output, total net revenues and consolidated net income, core business gross margin, the business outlook and quotations from management in this announcement, statements regarding Suntech's beliefs and expectations about integrating the business and operations of MSK Corporation and the resulting synergies and benefits, as well as Suntech's strategic and operational plans, are forward-looking statements. Forward-looking 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.

About Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, Suntech uses the following non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude items related to share-based compensation and the purchase price allocation effect related to the MSK Corporation acquisition. Management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in Suntech's core business across different reporting periods on a consistent basis, independently of stock-based compensation expenses and the purchase price allocation effect related to the MSK acquisition. Thus, the non-GAAP financial measures provide investors with another method for assessing Suntech's operating results in a manner that is focused on the performance of its ongoing operations. Management also uses these non-GAAP measures internally to make an apples-to-apples comparison of the business and financial performances of current and historical results, for strategic decision making, forecasting future results and evaluating the Company's current performance. Many analysts covering Suntech use the non-GAAP measures as well. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" set forth at the end of this release and which shall be read together with the preceding financial statements prepared under GAAP.

     (1) All non-GAAP measures exclude share-based compensation expenses and
         the amortization expenses incurred from purchase price allocation
         related to the acquisition of MSK Corporation as of August 11, 2006.
         For further details on non-GAAP measures, please refer to the
         reconciliation table and a detailed discussion of management's use of
         non-GAAP information below.

Note: The quarterly consolidated income statements are unaudited. The condensed consolidated balance sheet as of December 31, 2006 and consolidated income statement for the year then ended are derived from Suntech's unaudited consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2005 and consolidated income statement for the year then ended are derived from Suntech's audited consolidated financial statements. The condensed income statement of reportable segments is also unaudited.



                         SUNTECH POWER HOLDINGS CO., LTD.
                       CONDENSED CONSOLIDATED BALANCE SHEET
                                    (In $'000)

                                              Suntech Group      Suntech Group
                                               Consolidated       Consolidated
                                               December 31,       December 31,
                                                   2005               2006
    ASSETS
    Current assets:
      Cash and cash equivalents                   359,324            225,530
      Restricted cash                               7,997             78,855
      Inventories                                  40,428            200,292
      Accounts receivable                           1,660             98,855
      Value-added tax recoverable                     339             26,218
      Advances to suppliers                        24,001             79,391
      Other current assets                          2,730              6,525
    Total current assets                          436,479            715,666

    Property, plant and equipment, net             39,718            113,750
    Intangible assets, net                          2,923             75,751
    Goodwill                                          135             28,551
    Investments in affiliates                       1,059              2,950
    Long-term prepayments                              --            132,314
    Long-term loan to a supplier                       --             22,246
    Other non-current assets                        1,350              6,727

    TOTAL ASSETS                                  481,664          1,097,955

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
       Short-term borrowings, including
        current portion of long-term bank
        borrowings                                 52,193            288,184
       Accounts payable                             3,522             40,542
       Other current liabilities                   16,261             28,096
    Total current liabilities                      71,976            356,822

    Long-term bank borrowings                       3,717             19,657
    Accrued warranty costs                          2,619              8,846
    Other long-term liabilities                        --             41,625
    Total liabilities                              78,312            426,950

    Minority interest                               1,429             18,542

    Total shareholders' equity                    401,923            652,463

    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                       481,664          1,097,955




                        SUNTECH POWER HOLDINGS CO., LTD.
                        CONSOLIDATED INCOME STATEMENT (*)
              (In $'000, except share, per share, and per ADS data)

                                                For the year ended December 31
                                                    2005              2006
                                               Suntech Group     Suntech Group
                                                Consolidated      Consolidated
    Net revenues                                   226,000           598,870
    Total cost of revenues                         157,438           449,982

    Gross profit                                    68,562           148,888

    Operating expenses
    Selling expenses                                 3,667             9,010
    General and administrative expenses             18,874            28,274
    Research and development expenses                3,358             8,375
    Total operation expenses                        25,899            45,659

    Income from operations                          42,663           103,229
    Interest expenses                               (7,907)           (6,293)
    Interest income                                    296            11,772
    Other income (expense)                            (758)            2,060

    Income before income taxes                      34,294           110,768
    Tax provision                                   (3,753)           (7,188)

    Net income after taxes before
     minority interest and equity in
     earnings of affiliates                         30,541           103,580
    Minority interest                                  (34)            1,410
    Equity in earnings of
     affiliates                                        121             1,012

    Net income                                      30,628           106,002
    Deemed dividend on Series A
     redeemable convertible preferred
     shares                                          2,406                --
    Net income attributable to holders of
     ordinary shares                                28,222           106,002

    Net income per share and per ADS:
        - Basic                                       0.31              0.71
        - Diluted                                     0.26              0.68

    Shares used in computation:
        - Basic                                 92,047,507       148,697,962
        - Diluted                              116,825,138       156,106,345

    (*) Purchase price allocation is preliminary and will be finalized within
        one year timeframe from the acquisition date.



                         SUNTECH POWER HOLDINGS CO., LTD.
                        CONSOLIDATED INCOME STATEMENT (*)
              (In $'000, except share, per share, and per ADS data)

                                     Suntech Group Suntech Group Suntech Group
                                      Consolidated Consolidated  Consolidated
                                           2005         2006         2006
                                            Q4           Q3           Q4
    Net revenues                          88,989      162,969      217,859
    Total cost of revenues                65,407      125,742      169,372

    Gross profit                          23,582       37,227       48,487

    Operating expenses
    Selling expenses                         946        2,889        3,564
    General and administrative expenses    8,008        7,050       11,569
    Research and development expenses      2,084        2,038        3,626
    Total operation expenses              11,038       11,977       18,759

    Income from operations                12,544       25,250       29,728
    Interest expenses                       (773)      (1,869)      (2,390)
    Interest income                          174        4,119        3,152
    Other income (expense)                  (105)       1,707        1,546

    Income before income taxes            11,840       29,207       32,036
    Tax provision                         (1,500)      (1,617)      (1,830)

    Net income after taxes before
     minority interest and equity in
     earnings of affiliates               10,340       27,590       30,206
    Minority interest                        (29)         301        1,123
    Equity in (loss) earnings of
     affiliates                              244          838           88

    Net income                            10,555       28,729       31,417
    Deemed dividend on Series A
     redeemable convertible preferred
     shares                                  784           --           --
    Net income attributable to holders
     of ordinary shares                    9,771       28,729       31,417

    Net income per share and per ADS:
        - Basic                             0.10         0.19         0.21
        - Diluted                           0.08         0.19         0.20

    Shares used in computation:
        - Basic                       98,123,263  148,324,230  149,790,714
        - Diluted                    132,872,299  154,930,224  156,312,894

    (*) Purchase price allocation is preliminary and will be finalized within
        one year timeframe from the acquisition date.



                        SUNTECH POWER HOLDINGS CO., LTD.
             CONSDENSED INCOME STATEMENT OF REPORTABLE SEGMENTS (*)
                                   (In $'000)

                                               MSK
                                           Corporation
                                  Suntech   Excluding
                                   Group    Effect of  Effect of
                                 Excluding   Purchase   Purchase    Suntech
                                     MSK      Price      Price       Group
                                Corporation Allocation Allocation Consolidated

                                    2006       2006       2006        2006
                                     Q4         Q4         Q4          Q4
    Net revenues                  190,281     27,711         --     217,859
    Total cost of revenues        140,774     28,468        255     169,372

    Gross profit                   49,507       (757)      (255)     48,487

    Operating expenses
    Selling expenses                2,954        610         --       3,564
    General and administrative
     expenses                       8,851      2,252        466      11,569
    Research and development
     expenses                       2,845        781         --       3,626
    Total operation expenses       14,650      3,643        466      18,759
    Income from operations         34,857     (4,400)      (721)     29,728

    Interest expenses              (1,946)      (431)       (12)     (2,390)
    Interest income                 3,033        119         --       3,152
    Other income (expense)            199      1,248         98       1,546

    Income before income taxes     36,143     (3,464)      (635)     32,036
    Tax provision                  (2,128)        (3)       301      (1,830)

    Net income after taxes before
     minority interest and equity
     in earnings of affiliates     34,015     (3,467)      (334)     30,206
    Minority interest                 (25)     1,148         --       1,123
    Equity in earnings of
     affiliates                        88         --         --          88

    Net income                     34,078     (2,319)      (334)     31,417

    (*) Purchase price allocation is preliminary and will be finalized within
        one year timeframe from the acquisition date.


              Reconciliations of non-GAAP results of operations
             measures to the nearest comparable GAAP measures (*)
  (in $ millions, except margin data, per share and per ADS data, unaudited)


                     Three months ended December 31, 2005
                                                                      Suntech
                                      Suntech              Effect of   Group
                                       Group  Share-based   Purchase    Non-
                                       GAAP   Compensation   Price      GAAP
                                      Results              Allocation  Results
    Gross profit                       23.6      1.2           --       24.8
    Gross margin                       26.5%                            27.9%

    Income from operations             12.5      7.1           --       19.6
    Income from operations margin      14.1%                            22.0%

    Net income attributable to holders
     of ordinary shares                 9.8      7.1           --       16.8
    Net income margin                  11.0%                            18.9%

    Net income per share and per ADS
    -Basic                             0.10                             0.17
    -Diluted                           0.08                             0.13



                    Three months ended September 30, 2006
                                                                     Suntech
                                                                      Group
                              Suntech Share- Effect of  Suntech     Excluding
                               Group  based   Purchase   Group         MSK
                               GAAP   Compen   Price     Non-   MSK    Non-
                              Results sation Allocation  GAAP  Results GAAP
                                                        Results       Results
    Gross profit                37.2   0.3      0.5      38.0   0.6    38.6
    Gross margin                22.8%                    23.3%         26.0%

    Income from operations      25.3   3.5      1.0      29.8   1.8    31.6
    Income from operations
     margin                     15.5%                    18.3%         21.3%

    Net income attributable to
     holders of ordinary shares 28.7   3.5      0.6      32.8   0.5    33.3
    Net income margin           17.6%                    20.1%         22.4%

    Net income per share and
     per ADS
       -Basic                   0.19                     0.22          0.22
       -Diluted                 0.19                     0.21          0.22



                     Three months ended December 31, 2006
                                                                     Suntech
                                                                      Group
                              Suntech Share- Effect of  Suntech     Excluding
                               Group  based   Purchase   Group         MSK
                               GAAP   Compen   Price     Non-   MSK    Non-
                              Results sation Allocation  GAAP  Results GAAP
                                                        Results       Results
    Gross profit               48.5     0.4     0.3      49.1    0.8   49.9
    Gross margin               22.3%                     22.5%         26.2%

    Income from operations     29.7     3.8     0.7      34.2    4.4   38.6
    Income from operations
     margin                    13.6%                     15.7%         20.3%

    Net income attributable
     to holders of ordinary
     shares                    31.4     3.8     0.3      35.5    2.3   37.8
    Net income margin          14.4%                     16.3%         19.9%

    Net income per share and
     per ADS
       -Basic                  0.21                      0.24          0.25
       -Diluted                0.20                      0.23          0.24

    (*) The adjustment is for share-based compensation and amortization
        expenses incurred from purchase price allocation related to the
        acquisition of MSK Corporation.


    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

    In the United States:
     E.E. Wang
     The Piacente Group, Inc.
     Tel:   +1-212-481-2050
     Email: suntech@tpg-ir.com

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