SOLA Renesola

    RENESOLA LTD                                  

                     PRODUCTION CAPACITY EXPANSION UPDATE                      

                                                                               
ReneSola Ltd ("ReneSola" or the "Company") (AIM: SOLA), a leading manufacturer
of solar wafers for the photovoltaic industry, is pleased to announce a
significant uplift to its planned 2007 production capacity expansion.

2007 Production Capacity Expansion Revision

On 10 October 2006 the Company announced that the planned production capacity
for the end of 2007 had been increased from 125 MW to 180 MW through the
addition of multicrystalline furnaces and wire saws.

Since that time, ReneSola has received letters of intent, primarily from
existing customers, to purchase additional monocrystalline wafers that far
exceed the existing monocrystalline wafer production capacity.  In order to
meet this demand, the Company has increased the planned 2007 capacity expansion
with the addition of a further 85 MW of monocrystalline furnaces.  Total
production capacity by the end of 2007 is therefore now planned to be 265 MW.

ReneSola has commenced the negotiation of sales contracts with customers for
the delivery of the anticipated output of approximately 50 MW of wafers during
2007 from the additional monocrystalline furnaces.  The Directors expect that
approximately 75 per cent. of these sales will be effected under tolling
arrangements where the customer supplies the silicon feedstock to ReneSola for
processing into solar wafers.  This will significantly reduce the Company's
working capital requirement.

ReneSola has signed a contract and paid a deposit for the purchase of the first
batch of 48 monocrystalline furnaces from Beijing Oriental Keyun Crystal
Technologies Co. Ltd., which supplied all of the Company's existing
monocrystalline furnaces.  These furnaces are expected to be delivered in
February and March 2007.  The remaining 48 furnaces are planned to be delivered
during the second quarter of 2007.

In tandem with the planned addition of monocrystalline furnaces, the Company
has signed a contract with NTC of Japan to purchase a further 25 wire saws,
which are scheduled to be delivered during the first half of 2007.

The facility of 10,400m2 currently under construction adjacent to existing
facilities will be used to house the new monocrystalline furnaces and wire
saws.  The facility is expected to be finished in early February 2007.  The new
multicrystalline furnaces purchased from ALD Vacuum Technologies GmbH of
Germany and the wire saws purchased from Meyer Burger AG of Switzerland will be
located in the next phase of facilities on which construction is expected to
begin before the end of 2006.

The Company is currently in negotiations with a Chinese bank which has
indicated that it will provide facilities consisting of a term loan to finance
the instalment payments of the capital expenditure and a revolving credit line
to finance the working capital requirements.

 
For further information, please contact:

 

In China:

Charles Bai, CFO
ReneSola Ltd
Tel: +86 573 477 3061, +86 573 477 3058
Email: charles.bai@renesola.com

In the UK:

Charles Ryland/Suzanne Brocks/Catherine Breen
Buchanan Communications
Tel: +44 20 7466 5000

Tim Feather
Hanson Westhouse LLP
Tel: +44 113 246 2610
Email: tim.feather@hansonwesthouse.com

 



END

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