January 4, 2010

Hong Kong, China: Solargiga Terminates Acquisition of Kinmac

Solargiga Energy has terminated its acquisition of Kinmac Solar Corporation. The proposed acquisition of Kinmac was subject to the approval of the Investment Commission of the Ministry of Economic Affairs of Taiwan. Given that the approval was not obtained as at 6:00 pm on 31 December 2009, the parties to the Sale and Purchase Agreement agreed to terminate the Sale and Purchase Agreement.

Completion of the Subscription Agreement was conditional on the Sale and Purchase Agreement having been completed in accordance with its terms. In view of the termination of the Sale and Purchase Agreement, the parties to the Subscription Agreement agreed to terminate the Subscription Agreement.

The Directors consider that the termination of the Sale and Purchase Agreement and the Subscription Agreement has no material adverse impact on the business or financial position of the Company.

The Group will strengthen the cooperation with Kinmac by developing the downstream solar module and system installation businesses through Jinzhou Jinmao Photovoltaic Technology Co., Ltd., a joint venture company with Kinmac.

Leveraging on this newly established platform in Jinzhou, the Group will continue to capture potential opportunity proactively in an effort to developing the downstream business in both the PRC and abroad in the photovoltaic industry.

Further details about: Solargiga