Solar Integrated Signs Preferred Supply Agreement With UPC Solar To Pursue U.S. Solar Project Development Market

London, UK, and Los Angeles, California, April 25, 2007 – Solar Integrated Technologies, Inc. (AIM:SIT.LN), a leading provider of building integrated photovoltaic (BIPV) roofing systems, announced today that it has entered into a preferred supply and cooperation agreement with UPC Solar Management, LLC, a developer of solar energy projects in the United States.  Under the agreement, Solar Integrated will be the preferred supplier to UPC Solar of BIPV roofing systems and certain other thin film solar products, solar roofing installation services, and renewable energy management software systems for solar installations.  UPC Solar will be Solar Integrated’s preferred developer for solar energy projects in the United States where the end customer prefers to purchase solar generated electricity under a long term power purchase agreement rather than purchase, own and operate the solar energy system directly.

Beyond raising equity capital, one of Solar Integrated’s primary objectives when the Company was reviewing strategic alternatives last year was to strengthen the Company’s platform to effectively compete for and profitably close business for structured finance solar roofing projects in the United States.  As part of the Company’s December 2006 financing, Brian E. Caffyn joined the Company as Chairman of the Board of Directors.  Mr. Caffyn brings significant experience to Solar Integrated in profitably structuring and developing renewable energy projects in the United States and Europe.  Mr. Caffyn is the chairman and majority owner of UPC Solar, which is part of Mr. Caffyn’s UPC group of companies.  UPC Solar has an experienced team of renewable energy project development professionals that are actively engaged in U.S. solar project development.

R. Randall MacEwen, President & CEO of Solar Integrated, stated: “When we closed our December 2006 financing, we communicated that we viewed the UPC Group as a significant accelerator to further grow our business and that we expected the UPC Group to be an important future customer.  This preferred supply and cooperation agreement with UPC Solar is an important and tangible first step.”

Morten Sissener, President & CEO of UPC Solar stated: “We are very excited to partner with Solar Integrated to aggressively pursue the growing market for solar project development in the U.S.  Solar Integrated is a pioneer and leading provider of BIPV roofing systems, with a unique understanding of the solar roofing market, a high quality product offering, and an impressive list of reference accounts and blue-chip customers.  We expect to close a significant amount of business with Solar Integrated in 2007.”

John M. Palumbo, Chief Financial Officer of Solar Integrated, added: “Having this strategic relationship with UPC Solar for U.S. structured finance projects will allow us to effectively serve an important and growing target market, while also allowing our management team to focus on improving the business fundamentals, including profitable revenue growth, gross margin expansion, managing overhead costs with discipline, tightly managing cash flow, and investing in the areas of the business that will drive additional growth.”

The preferred supply and cooperation agreement was approved by Solar Integrated’s board of directors, excluding Mr. Caffyn, Nicholas A. Wrigley and Frederik W. Mowinckel who did not participate in the relevant board discussions and did not vote on the relevant board resolution given their relationship with UPC, including as nominees of UPC to the Company’s board of directors.  Any future commercial arrangements between Solar Integrated and UPC Solar will be similarly approved, and will constitute related party transactions within the meaning of the AIM rules.

 

About Solar Integrated:
Solar Integrated Technologies, Inc. (SIT: AIM.LN) is a Los Angeles-based company that manufactures, designs and installs building integrated photovoltaic (BIPV) roofing systems for non-residential, low-slope rooftops.  We are a global leader in the development of an innovative and proprietary BIPV roofing system that combines flexible thin-film solar modules with a single-ply roofing membrane for large-scale commercial and industrial applications.  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, ProLogis, San Diego Unified School District, Toyota, U.S. Air Force, U.S. GSA, U.S. Navy and Wal-Mart. 

About UPC Solar:
UPC Solar is a solar energy development company focused on helping companies, governmental entities and utilities take advantage of the numerous benefits of solar derived electrical power.   UPC has a deep history in renewable energy with 750 MW of renewable energy operational and another 3,000 MW of renewable energy in development worldwide.  UPC Solar designs, builds, owns and operates solar electricity systems customized to each customer’s site.  UPC Solar’s power purchase agreement (PPA) enables customers to quickly access solar electricity without large upfront capital investments.  For more information, please visit www.upcsolar.com

 

Forward-Looking Statement:
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:  the availability and cost of capital; 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; and the availability of, and our ability to retain, key personnel.  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:
Investor Contacts:
Solar Integrated Technologies, Inc.                              Solar Integrated Technologies, Inc.
R. Randall MacEwen                                                    John M. Palumbo
President & Chief Executive Officer                              Chief Financial Officer
Los Angeles, California, USA                                         Los Angeles, California, USA
+1.562.299.0136                                                        +1.562.299.0121

Media Contacts:
Gavin Anderson & Company                                       
Ken Cronin or Deborah Walter                                     
London, UK                                                                
+44.20.7554.1400