Day4 Energy Announces Reduction in Workforce

BURNABY, BC, Jan. 6 /PRNewswire-FirstCall/ – Day4 Energy Inc. (TSX: DFE), a solar electric technology developer and manufacturer of superior performance solar modules, today announced the company has implemented a reduction in its overall headcount affecting approximately 95 people primarily at its Burnaby production facility.

“While it is always a difficult decision to let people go, it is equally important to ensure the company is best positioned to meet the realities of the new solar economy. We are seeing continued strength in demand for our product in Europe and remain confident in our contracted sales for 2009, however, given the broader economic environment and seasonal weather patterns we are being proactive in managing our business to avoid inventory build-up. With this action to streamline the company’s cost structure we are taking advantage of our flexible business model as we pursue our strategy to reduce working capital costs and capitalize on the significant reductions we expect in materials costs over the next couple of quarters,” said George Rubin, president of Day4 Energy. “We are confident that with these changes we will be able to adjust our production to effectively and efficiently meet the best timing and geographical demand for 2009. This strategy will not only align our cost structure with the potential for the near term but it will also ultimately put the company in a better position to expand and grow with the market in the future. This will allow us to focus on those parts of the business that drive the highest returns.”

Day4 Energy will provide its employees affected by the workforce reduction with severance and human resource support to assist with outplacement. We expect there will be an associated restructuring charge of approximately $0.7 million recorded in 2009.

About Day4 Energy

Day4 Energy Inc. is Canada’s largest manufacturer of high performance photovoltaic (PV) modules for residential, commercial and utility scale installations around the world. By fundamentally improving on the design and assembly of solar modules, Day4 Energy produces unique PV panels of high power density, increased lifetime and uncompromised aesthetic appearance. Day4 Energy partners with international technology leaders to develop and deliver IEC- and UL-certified solar products to customers throughout Europe and North America.

Day4 Energy is listed on the Toronto Stock Exchange under the symbol “DFE”. For more information, please visit http://www.day4energy.com.

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements that relate to our current expectations and views of future events. These forward-looking statements include, among other things, statements relating to our expectations regarding continued strength in demand for our products, our confidence in our contracted sales for 2009, our ability to avoid inventory build-up, our ability to reduce costs including working capital costs and material costs, our ability to adjust production to meeting timing and demand, our ability to expand and grow and our expected restructuring charge in 2009.

The forward-looking statements contained in this news release are based on assumptions, which include, but are not limited to, our ability to adjust or outsource our annual PV module manufacturing capacity; our ability to secure raw materials at acceptable prices and qualities; our ability to achieve increased PV cell and PV module efficiencies; our ability to expand our existing product line; our ability to attract customers and develop and maintain customer and supplier relationships; our ability to diversify our suppliers; our ability to effectively manage foreign exchange risks; our ability to protect our intellectual property rights and to not infringe on the intellectual property rights of third parties; and our ability to comply with applicable governmental regulations and standards going forward.

Such forward-looking statements are subject to risks, uncertainties and other factors, including those listed in our Annual Information Form filed with Canadian securities regulatory authorities, many of which are beyond our control and each of which contributes to the possibility that our forward-looking statements will not occur or that actual results, performance or achievements may differ materially from those expressed or implied by such statements. These risks, uncertainties and other factors include, but are not limited to, the impact of general economic, market or business conditions; our limited operating history; the current industry-wide shortage of high-purity silicon; risks relating to the protection of our intellectual property and intellectual property infringement claims by third parties; our dependence on a limited number of PV cell suppliers; government subsidies and economic incentives for PV power could be reduced or eliminated; we may be unable to achieve higher PV module efficiencies; our dependence on a limited number of customers and our lack of long-term purchase contracts; demand for PV modules; technological changes in the PV power industry could render our products uncompetitive or obsolete; unexpected warranty expenses; fluctuations in exchange rates; product liability claims; compliance with environmental regulations; and other factors, many of which are beyond our control.

The forward-looking statements made in this news release relate only to events or information as of the date indicated above. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

[Via http://www.prnewswire.com]

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