Solar Integrated Announces CEO Departure and Cost Reduction Program

London, UK, July 10, 2006 – Solar Integrated Technologies, Inc. (AIM: SIT.LN) announced today that Jon W. Slangerup has resigned his position as the Company’s Chief Executive Officer, and as a member of the Company’s Board of Directors, following discussions with the Board.  R. Randall MacEwen, currently Executive Vice President, Corporate Development, has been appointed Chief Executive Officer on an interim basis, effective immediately.  The Company also announced that it has implemented a cost reduction program to address the Company’s current cost structure.  The Company expects the program to yield cumulative annualized cost savings in excess of $1.6 million primarily from headcount reduction, representing 10% of the Company’s annualized overhead costs.


“We are at a critical juncture in the Company’s development and growth,” commented Randall MacEwen.  “In the near term, we are focused on raising capital to improve our balance sheet and our working capital position, working with our current lender to address recent issues, cash management, improving our management of controllable expenses, and our margin expansion plan.”


“We re-confirm our revenue guidance of growth in excess of 80% for 2006,” stated John M. Palumbo, Chief Financial Officer.  “The headcount reduction will not impact customer deliverables or the Company’s core business activities.”


The Company will take a one-time charge of approximately $1.0 million, including charges related to severance.  The Company advised that it expects the measures taken will lower overall breakeven operating levels.


Randall MacEwen joined the Company as Executive Vice President, Corporate Development, General Counsel and Corporate Secretary in September 2005.  Mr. MacEwen started his career as a corporate and securities lawyer with Torys LLP, a leading North American business law firm, where he advised on corporate finance, mergers & acquisitions, and corporate governance matters from 1995 to 2001.  Mr. MacEwen joined Stuart Energy Systems Corporation, an alternative energy company, in October 2001 as Vice President, Corporate Development, General Counsel and Corporate Secretary.  During his tenure with Stuart Energy, Mr. MacEwen led Stuart Energy’s strategic planning, corporate finance, mergers & acquisitions, legal, investor relations and human resources activities.  Mr. MacEwen led Stuart Energy’s initial public offering, its acquisition of its largest competitor, its follow-on public equity offering, and its sale to Hydrogenics Corporation, a leading fuel cell developer, in January 2005.  From January 2005 to July 2005, Mr. MacEwen served as the Vice President, Corporate Development, General Counsel and Corporate Secretary of Hydrogenics Corporation, co-leading the integration of Stuart Energy.

The Company will host a conference call on Monday, July 10th, 2006 at 3:00 pm London time/10:00 am ET/7:00 am PT to further discuss these actions.  Investors and analysts can participate in the call by dialing +44 0208 9747900 in the UK or by dialing +718 354 1175 in the US, in each case with passcode C035953.

The Company’s annual and special meeting of shareholders is scheduled for Thursday, July 13th, 2006 at 9:00 am (London time) at Second Floor, 85 Strand, London, WC2R 0DW.

 

About Solar Integrated
Solar Integrated Technologies, Inc. (SIT: AIM.LN) is a Los Angeles-based company that designs, manufactures and installs building integrated photovoltaic, or BIPV, roofing systems for customers with flat or low-slope rooftops.  We believe we were the first company in North America to commercially market and sell an innovative and proprietary BIPV roofing system that combines flexible thin-film solar modules with a single-ply roofing membrane for the non-residential building market.  Our BIPV roofing system enables our customers to transform a traditional rooftop into a value-generating asset.  Our customers include Coca-Cola Enterprises, Frito-Lay, Honeywell, San Diego Unified School District and Wal-Mart. 


This release includes forward-looking statements which are based on certain assumptions and reflect management’s current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations.  Some of these factors include:  uncertainty as to whether our strategies, partnerships and business plans will yield the expected benefits; general global economic conditions; general industry and market conditions and growth rates; increasing competition; the ability to identify, develop and achieve commercial success for new products, services and technologies; changes in technology; changes in laws and regulations, including government incentive programs; intellectual property rights; our ability to secure and maintain strategic relationships, including key supply relationships; the availability and cost of capital; the availability of, and our ability to retain, key personnel; and the failure of the Company to effectively integrate acquisitions.  Additional factors are discussed in our public disclosure materials from time to time.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:

Company Contacts:
Solar Integrated Technologies, Inc.                              Solar Integrated Technologies, Inc.
R. Randall MacEwen                                                    John M. Palumbo
Executive Vice President, Corporate Development      Chief Financial Officer
Los Angeles, California, USA                                        Los Angeles, California, USA
+1.323.231.0411                                                          +1.323.231.0411

Media Contacts:
Gavin Anderson & Company                                        Solar Integrated Technologies, Inc.
Ken Cronin or Deborah Walter                                     Dona Garcia
London, UK                                                                  Los Angeles, California, USA
+44.20.7554.1400                                                         +1.323.231.0411