MEMC Announces Termination of Suntech Wafer Supply Agreement

MEMC Electronic Materials, Inc. WFR today announced that its affiliate, MEMC Singapore Pte. Ltd., and Suntech Power Holdings Co., Ltd. have agreed to terminate their long-term solar wafer supply agreement. Under the terms of the supply agreement, which was originally signed in July 2006, MEMC was to supply solar wafers to Suntech over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in January 2007. As part of the original supply agreement, Suntech advanced funds to MEMC in the form of a loan/security deposit and MEMC received a warrant to purchase up to a 4.99% equity stake in Suntech.