Trouble for Solar Company

Sun Power Corporation said that the recent decline in the trading value of Sun Power’s shares, coupled with its inability to secure capital in the start-up technology markets, has forced it to advise Solar Energy Limited (SEL) and Renewable Energy Limited (REL) that it cannot provide adequate operating capital to its subsidiaries Sunspring, Inc. and Renewable Energy Corporation.

Los Alamos, New Mexico – November 25, 2002 [] Pursuant to the share purchase agreements of between Sun Power and SEL, on the one hand, and Sunpower and REL on the other hand (both dated as of October 19, 2001) SEL and REL have notified Sun Power that they will exercise their respective rights to exchange their Sun Power convertible preferred shares for all of the issued and outstanding common shares of Sunspring and Renewable. Solar owns 8,000,000 shares of Sun Power Series A Preferred Stock, while REL owns 8,000,000 shares of Sun Power Series B Preferred Stock. November 26, 2002 has been established as the exchange date. Sun Power management is now establishing a restructuring program involving a consolidation of its issued and outstanding common shares, a name change, the relocation of its head office and negotiations with its major creditors in an effort to effect an exchange of certain outstanding debt for its common shares. Sun Power has received the resignation of Finley Foster as president and CEO. The board has appointed Andrew Schwab as acting president.
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