DayStar Technologies, Inc. (Nasdaq: DSTI), a developer and manufacturer of proprietary high performance photovoltaic products including silicon-free solar cells on specialty metal foils, today announced the signing of a purchase agreement with Blitzstrom, GmbH for Blitzstrom’s purchase of DayStar’s exclusive TerraFoil(TM) solar cells.
Contingent on DayStar’s ramp-up of its production capacity, the agreement calls for monthly delivery of TerraFoil(TM) escalating in volume through the end of 2008 with price based on a variable market- competitive pricing mechanism. DayStar’s Photovoltaic Foil(TM) product line, also known as PV Foil(TM), is an entirely different entry into a solar cell market which relies heavily on legacy silicon wafer design. In comparison, PV Foil(TM) is silicon-free and highly flexible which, when combined with the Company’s unique approach to manufacturing, can result in tremendous economies of scale and volume that could lower costs and deployment barriers currently limiting the adoption of solar energy.
Located in Mainbernheim, Germany, Blitzstrom, GmbH is a prevailing PV system integrator of Megawatt-scale PV power plants and distributor of photovoltaic systems and components in Germany and the European Union. The Company specializes in integrating new technology solutions for existing energy markets and is the largest provider of crystalline thin-film PV modules in Europe. Blitzstrom’s solar module fabrication facility will incorporate DayStar’s solar cells to produce and distribute traditional flat-plate modules for resale in their systems and projects.
Samples for module and array testing will be delivered in the near future, with initial product shipments slated for the third quarter of 2005. The purchase schedule through 2008, closely tracks with DayStar’s planned manufacturing capacity ramp up and capitalization strategy. Full realization of the purchase agreement would result in revenues of up to $60 million using today’s market price for the silicon cells they replace. Near term costs are likely to exceed projected revenue under this contractual arrangement until DayStar transitions its production of TerraFoil(TM) solar cells from the existing Gen II line to its planned lower cost Gen III production.
Also detailed in the agreement, Blitzstrom and DayStar will collaborate on marketing efforts and explore development opportunities for other distinctive product manufacturing and systems design for residential, commercial, industrial and utility-scale solar facilities.
“DayStar represents a unique opportunity for Blitzstrom to introduce this innovative thin-film manufacturer to our projects,” said Bernhard Beck, CEO of Blitzstrom. “With the mutual goal of delivering high quality, cost competitive, alternative and efficient non-silicon PV systems to our expanding markets, we believe this sale will further strengthen both Companies positions in the marketplace and eventually lead to exceptional cost competitiveness required for continued growth in Germany and throughout Europe.”
About DayStar Technologies, Inc.
DayStar Technologies, Inc. is an emerging leader in low cost, high efficiency Photovoltaic Foil(TM) that converts sunlight into energy. The Company’s patented and proprietary products include silicon-free CIGS solar cells, which are deposited on flexible metal foils using production processes adapted from commodity computer component manufacturing. DayStar believes the unique combination of its CIGS solar cell design coupled with proprietary manufacturing processes on flexible metal substrates can lead to solar electricity at commercially viable rates. For more information on the Company, please visit www.daystartech.com
About Blitzstrom GmbH
Blitzstrom GmbH is one of the leading sellers of thin-film modules and systems. Blitzstrom provides ready-to-use solutions in roof-mounted photovoltaic systems of all sizes to resellers and vendors alike. The product range comprises small self-sufficient solar power generators as well as large- scale grid-tied solar power plants. The solar power systems are flexibly scalable, a strong argument when it comes to converting the large and varying roof or free field areas of farm facilities into a solar power plant. Moreover, personal contribution of the future owner during system set-up is greatly supported by the easy-to-handle design, giving a great opportunity for cost savings. Flexible technological solutions and extensive consulting regarding performance optimization and financing are the cornerstones of the integrated services provided by Blitzstrom GmbH. For more information on the Company, please visit www.blitzstrom.de
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