Yingli Green Energy Announces Completion of Acquisition of Cyber Power and Entering into a Convertible Note Transaction

BAODING, China, Jan. 7 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy
Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”),
one of the world’s leading vertically integrated photovoltaic (“PV”) product
manufacturers, today announced it has completed the acquisition of Cyber Power
Group Limited (“Cyber Power”). To fund the acquisition the Company used
available cash on hand and committed to issue senior secured convertible notes
due 2012 (the “Notes”) to Trustbridge Partners II, L.P. (“Trustbridge”).

Pursuant to a share purchase agreement (the “Agreement”) entered into
between Yingli Green Energy and Grand Avenue Group Limited (“Grand Avenue”), a
company controlled by Mr. Liansheng Miao, Chairman and Chief Executive Officer
of the Company, Yingli Green Energy acquired 100% of the issued and
outstanding share capital of Cyber Power. Cyber Power, through Fine Silicon
Co., Ltd. (“Fine Silicon”), its principal operating subsidiary in China, is a
development stage enterprise with plans to begin production of solar-grade
polysilicon in the second half of 2009. Pursuant to the Agreement, Yingli
Green Energy paid Grand Avenue approximately US$77.6 million, of which US$25.0
million had been paid in November 2008 pursuant to the previously announced
binding letter of intent relating to the Cyber Power acquisition. The final
acquisition price was determined based on an approximately 4% discount to the
net tangible book value of Cyber Power as of November 30, 2008. Proceeds from
the Cyber Power acquisition will be used by Grand Avenue to repay in full all
of its outstanding indebtedness incurred to date in connection with the
construction of the polysilicon operations of Fine Silicon.

“We are excited to take this first step in expanding Yingli Green Energy’s
manufacturing capability to include solar-grade polysilicon,” commented Mr.
Zongwei Li, Chief Financial Officer of Yingli Green Energy. “We believe having
a fully integrated business model will not only help us secure high quality
polysilicon to meet our customers’ demands for top quality PV products but
also help control our silicon costs and improve our margins.”

The Company also entered into a note purchase agreement with Trustbridge,
an affiliate of Gold Sight International Limited (“Gold Sight”), the former
minority shareholder of Cyber Power, for up to US$50.0 million in Notes,
US$20.0 million of which will be issued in connection with the financing of
the Cyber Power acquisition. The US$20 million tranche of the Notes are
expected to be issued on or about January 16, 2009. The Notes will carry an
interest rate of 10% and will be convertible at any time into the Company’s
ordinary shares at an initial conversation rate of 17,699 ordinary shares per
US$100,000 principal amount of Notes (based on US$5.65 per American depositary
share, the volume weighted average price of the Company’s American depositary
shares over the past 20 trading days on the New York Stock Exchange), subject
to adjustment under the terms of the indenture governing the Notes. The Notes
are guaranteed by Mr. Miao and Yingli Power Holding Company Ltd. (“Yingli
Power”), a company controlled by Mr. Miao and the controlling shareholder of
the Company, and secured by a pledge by Yingli Power of a fixed number of
ordinary shares of the Company it holds (with no obligation to deliver
additional shares of collateral nor any default tied to the trading price of
the American depositary shares of Yingli Green Energy).

Yingli Green Energy expects that the Cyber Power acquisition will enable
it to have a more secure and stable supply of polysilicon that is less
dependent on market conditions, and allow it to further vertically integrate
its manufacturing processes and improve margins.

In a concurrent transaction, Grand Avenue purchased from Gold Sight all of
Gold Sight’s 30% equity interest in Cyber Power, enabling Grand Avenue to then
sell 100% of the issued and outstanding share capital of Cyber Power to the
Company to complete the acquisition. Under the terms of the note purchase
agreement, subsequent proceeds received by Gold Sight from the sale of Gold
Sight’s 30% equity interest in Cyber Power will be applied by Trustbridge or
its affiliate toward the purchase of up to an additional US$30.0 million of
the Notes. Yingli Green Energy expects to use the proceeds from the
additional US$30.0 million tranche of the Notes for general corporate purposes.

The Cyber Power acquisition received final approval from the Company’s
board of directors and audit committee in accordance with its corporate
governance requirements.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is one of the world’s leading
vertically integrated PV product manufacturers. Through the Company’s
principal operating subsidiary in China, Baoding Tianwei Yingli New Energy
Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV
modules and designs, assembles, sells and installs PV systems that are
connected to an electricity transmission grid or operate on a stand-alone
basis. With 400 MW of total annual production capacity in each of polysilicon
ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently
one of the largest manufacturers of PV products in the world as measured by
annual production capacity. Additionally, Yingli Green Energy is one of a
limited number of large-scale PV companies in the world to have adopted a
vertically integrated business model. Through its wholly owned subsidiary,
Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand
annual production capacity of polysilicon ingots and wafers, PV cells and PV
modules to 600 MW in the third quarter of 2009. The Company, through Fine
Silicon Co., Ltd., its wholly owned subsidiary, also plans to begin production
of solar-grade polysilicon in second half of 2009. Yingli Green Energy sells
PV modules under its own brand name, Yingli Solar, to PV system integrators
and distributors located in various markets around the world, including
Germany, Spain, Italy, South Korea, Belgium, France, China and the United
States. For more information, please visit http://www.yinglisolar.com .

Safe Harbor Statement

This press release contains forward-looking statements. These statements
constitute “forward-looking” statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and
similar statements. Such statements are based upon management’s current
expectations and current market and operating conditions, and relate to events
that involve known or unknown risks, uncertainties and other factors, all of
which are difficult to predict and many of which are beyond Yingli Green
Energy’s control, which may cause Yingli Green Energy’s actual results,
performance or achievements to differ materially from those in the forward-
looking statements. Further information regarding these and other risks,
uncertainties or factors is included in Yingli Green Energy’s filings with the
U.S. Securities and Exchange Commission. Yingli Green Energy does not
undertake any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required under
applicable law.

    For further information, please contact:

    In China:
     Qing Miao
     Director, Investor Relations
     Yingli Green Energy Holding Company Limited
     Tel:   +86-312-3100-502
     Email: ir@yinglisolar.com

    In the United States:
     Linda Bergkamp
     Christensen
     Tel: +1-480-614-3004
     Email: lbergkamp@ChristensenIR.com

    In Hong Kong:
     Chen Yuan Yuan
     Christensen
     Tel: +852-2232-3926
     Email: ychen@ChristensenIR.com

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

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