Solar Integrated Announces Conversion of $4 Million of Notes

London, UK, December 23, 2005 – Solar Integrated Technologies, Inc. (AIM: SIT.LN), a leading provider of commercial building integrated photovoltaic (BIPV) roofing systems, announced today that, pursuant to the terms of previously issued convertible notes, an investor has converted an aggregate of US$4,000,000 of notes into 1,179,245 shares of Solar Integrated common stock at a conversion rate of US$3.392 per share. After giving effect to this conversion, Solar Integrated has 34,641,955 shares issued and outstanding. Application has been made for the new common shares, which rank pari passu with the existing common shares, to be admitted to AIM. Admission to AIM is expected to take place on December 30, 2005.

On November 7, 2005, Solar Integrated announced that it had closed a $37 million private placement of convertible notes. The notes mature on November 1, 2010 and bear interest at 6.5% per annum, subject to adjustment in certain circumstances. The notes are convertible, at the option of the holder, into Solar Integrated common stock at a conversion price of $3.392 per share, subject to adjustment in certain circumstances. The initial conversion price represented a 16% premium to the average of the closing prices of Solar Integrated’s common stock during a 10-day pricing period that yielded an average closing price per share of £1.6395, and converted to US dollars at the then effective exchange rate. The notes are subordinate to existing and future secured debt of the Company to the extent of the value of the assets securing that debt. No application has been, nor is expected to be, made for the convertible notes to be listed or quoted on any public exchange.

About Solar Integrated

Solar Integrated Technologies, Inc. (AIM: SIT.LN) is a leader in the design, manufacture and marketing of building integrated photovoltaic (BIPV) systems for commercial roofing and portable solar applications enabling the generation of reliable and economic renewable power. Customers include Coca-Cola Enterprises, Frito-Lay, ProLogis, 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: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; 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:

Solar Integrated Technologies, Inc.
R. Randall MacEwen  Executive Vice President, Corporate Development   Los Angeles, California  +1 323 231 0411	Frederik W. Mowinckel Chief Operating Officer – Europe London, UK +44 20 7153 3500
Gavin Anderson & Company
Ken Cronin/Deborah Walter UK    +44 20 7554 1400	Montieth Illingworth/Sanuber BilguvarLondon, New York, NY +1 212 515 1900