Spire Signs US $54M Contract for Federal Prison Solar System

Spire Corporation announced that it has received a contract worth US $54.94 million from the Federal Prison Industries Inc., otherwise known as Unicor, to supply solar cells for the Spire-installed turnkey photovoltaic (PV) module factory located at the Federal Correctional Institution (FCI) in Otisville, New York.

Unicor is a wholly-owned government corporation that is authorized to operate industries in federal correctional institutions and disciplinary barracks throughout the United States. The Spire-supplied turnkey module line at FCI Otisville is to be operated by inmates who will be trained to find employment in the rapidly growing United States solar industry.

Modules manufactured at FCI Otisville will be sold for government installations. Successful performance of the factory may lead to similar factories at other UNICOR locations.

“UNICOR recognizes the potential for module production to serve the United States Federal Government. It is important to enter quickly and have the factory running, staff and inmates trained, and certification completed. We are excited to be working with Spire, a United States based company who is a global leader in this field,” said Todd Baldau, public information officer for UNICOR.

In a related story, Spire received a letter from The Nasdaq Stock Market advising that for the prior 10 consecutive trading days, the company’s market value of listed securities was below the minimum US $50 million requirement for continued inclusion on The Nasdaq Global Market under Marketplace Rule 4450(b)(1)(A).

Nasdaq also noted that the company does not comply with Marketplace Rule 4450(b)(1)(B), which alternatively requires total assets and total revenue of at least US $50 million each for the most recently completed fiscal year or two of the three most recently completed fiscal years. This notification has no immediate effect on the listing of the company’s common stock.

The company will be provided 30 calendar days, or until December 31, 2008, to regain compliance with the Rule. If at any time before December 31, 2008, the company’s market value of listed securities is US $50 million or more for a minimum of 10 consecutive business days, the Nasdaq staff will determine if the company complies with the Rule.

If Spire does not regain compliance with the minimum market capitalization requirement by December 31, 2008, Nasdaq will provide the Spire with written notification that the company’s common stock will be delisted from The Nasdaq Global Market.This follows the announcement last month that Spire saw revenues increase 78% in the third quarter of 2008 on strong sales of solar photovoltaic production equipment.

“This is the seventh straight quarter Spire has achieved record revenue with 90% of the growth coming from solar equipment sales. The improvement in gross margin was mainly due to improved margins from our solar operations. This reflects the investments we made last year in both new personnel and facility expansion. While our selling expenses are increasing, they are in line with our prior several quarters and growing slower than our revenue growth. We achieved a net profit of $445,000 for the quarter and reduced our loss to $347,000 for the first nine months of the year,” said Roger Little, chairman and CEO of Spire.

The company reported revenues of US $17.5 million for the three months ended September 30, 2008, a 78% increase compared to US $9.8 million for the same period in 2007. Net income was US $445,000, or US $0.05 per basic share for the three months ended September 30, 2008, compared with net income after extraordinary gain of US $2.8 million or US $0.33 per basic share for the same period in 2007.

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