Day4 Energy | News + Events

News Release

Day4® Energy Completes Outsource Agreement with Jabil

Substantial Module Assembly Cost Savings Expected.
Geographic Proximity to Sales Provides Natural Hedge and
Significant Reduction in Working Capital Costs.

Burnaby, British Columbia — December 23, 2008 — Day4 Energy Inc. (TSX: DFE), a solar electric technology developer and manufacturer of superior performance solar modules, today announced it has signed a long-term manufacturing supply agreement with Jabil Circuit Inc., a leading global electronic solutions company. Under the terms of the multi-year agreement Jabil will purchase from Day4 Energy certain equipment required for the manufacture and supply of the modules and produce Day4 Energy’s brand of modules for residential and commercial applications.

“The outsource strategy is a key component of our business plan offering a number of advantages including a step-function improvement in our cost structure with substantial photovoltaic module assembly cost savings, significant working capital expense reduction, and a natural hedge to foreign exchange effects by geographically aligning our production with our key sales locations,” said George Rubin, president of Day4 Energy. “Day4 will provide the solar cells based on our proprietary designs and Jabil’s manufacturing expertise and supply chain power will allow us to enhance the efficiencies of photovoltaic module manufacturing. By partnering with Jabil we can focus on our core areas of expertise and value creation for Day4, namely R&D and sales and marketing.”

“We believe that our proven technical and manufacturing expertise, coupled with Day4 Energy’s superior product offering, is a strong combination. This partnership expands our clean technologies portfolio by developing a foothold in the solar industry, a market we believe has tremendous growth potential and can benefit from our economies of scale, optimized supply chain and standardized global operating systems,” explained Brian Althaver, Jabil vice president of strategic development.

George Rubin added, “This relationship streamlines the company’s cost structure and takes advantage of our flexible business model. With the fundamental near-term shifts occurring in the solar sector, our strategy is to reduce working capital costs, and ensure that we are in a good position to take advantage of the significant reductions we expect in materials costs over the next couple of quarters. We are seeing continued strength in demand for our product in Europe in the residential and commercial applications and remain confident in our contracted sales for 2009.” Rubin continued, “We will focus on managing production to effectively and efficiently meet the best timing and geographical demand for 2009. Given the broader economic environment and seasonal weather patterns we are being proactive in managing our business to avoid inventory build-up. We expect to have the equipment installed at the Jabil facility in Q1 and to be operating at full capacity as we enter the second half of 2009. This timing coincides perfectly with the expected demand cycle as it capitalizes on the normal seasonality from December through the first quarter. The overall strategy not only aligns our cost structure with the near term it ultimately puts the company in a better position to expand and grow in the future by focusing on those parts of the business that drive the highest returns.”

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 www.day4energy.com.

About Jabil

Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete product supply chain management around the world. With approximately 85,000 employees and facilities in 22 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL." Further information is available on the company's website: jabil.com.

Conference Call Information

Day4 Energy’s management will conduct a conference call at 8:30am (ET) December 23, 2008 to review the details of the outsourcing announcement. The conference call will be webcast live over the Internet and can be accessed by logging on to Day4 Energy’s website, www.day4energy.com, prior to the event. The call can also be accessed by dialing 1-800-319-4610 (Canada and US) or 1-604-638-5340 (International) prior to the start of the call. The webcast will also be archived on the company’s website.

Click here to access Webcast

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 improvement in our gross margins, achievement of module assembly cost savings, reduction of working capital expenses, hedging of foreign exchange effects, enhancing manufacturing efficiencies, reduction of materials costs, continued strength in demand for our products and our ability to expand and grow.

The forward-looking statements contained in this news release are based on assumptions, which include, but are not limited to, the closing of the transactions contemplated by the manufacturing supply agreement including the sale of equipment; our ability to expand 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 failure to satisfy all conditions to the closing of the transactions contained in the manufacturing supply agreement and related agreements; 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.

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