ATS Signs Polysilicon Wafer Supply Agreement with Deutsche Solar AG

ATS Automation Tooling Systems Inc. announced that its Photowatt France subsidiary has entered into a second contract for the long-term supply of polysilicon wafers, which is a subsidiary of SolarWorld AG

Under the agreement that begins January 2010 and extends through December 2017, Deutsche Solar is obliged to deliver, and Photowatt is obliged to accept, approximately 32 million polysilicon wafers over the term of the agreement. Photowatt plans to process these wafers into solar cells and modules, representing approximately 118 megawatts of solar power capacity over the term of the agreement.

‘‘We are pleased that we have now secured this significant additional long-term supply of high quality wafers from Deutsche Solar,’‘ said Ron Jutras, ATS President and CEO. ‘‘This newest agreement with Deutsche Solar further demonstrates our progress in advancing our long-term silicon supply strategy and reduces our exposure to the risks of industry-wide silicon shortages.”

This contract is the second polysilicon wafer supply agreement between Photowatt and Deutsche Solar. The first—a 10-year contract that begins in January 2009— was announced October 2006 and provides for the supply of approximately 40 million polysilicon wafers over the 10-year period. Additionally, in April 2007 Photowatt entered into a multi-year contract to purchase a total of 1,700 tons of refined metallurgical-grade silicon (MgSi) from Dow Corning in order to allow Photowatt to produce MgSi-based solar cells as part of its product mix.

Advance payments under the Deutsche Solar contracts will be applied against the price of wafers received during the life of the commitments. The price per wafer will be adjusted at the beginning of each calendar year based upon an agreed formula. Management believes that these terms are reflective of current commercial terms in the solar industry for supply contracts of similar durations.

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