ATS’s Photowatt Signs LOI to Jointly Develop Spheral Solar™ Technology

ATS Automation Tooling Systems Inc. announced that its subsidiary, Photowatt Technologies Inc., has signed a non-binding letter of intent to enter into a business relationship with Clean Venture 21 Corp. ("CV21") of Kyoto, Japan and Fujipream Corp. ("Fujipream") of Hyogo, Japan, in order to advance the development of its Spheral Solar™ Technology.

The goal of this proposed relationship is to share the significant technology, knowledge and expertise of each of the parties in sphere-based solar technologies which Photowatt believes may reduce the substantial development risk and time to market for commercialization of sphere-based solar technology. The letter of intent envisions Photowatt and CV21 cross-licensing certain intellectual property to each other, including rights to manufacture and sell sphere-based solar cells and modules.

Under the letter of intent, it is intended that Photowatt will initially supply CV21 with silicon spheres manufactured in its Cambridge, Ontario facility and CV21, in conjunction with Fujipream, will use these spheres to manufacture sphere-based solar cells and modules. It is contemplated that Photowatt will have the option to purchase up to 50% of the resulting output of solar cells and modules for the purposes of either selling or incorporating into its own building integrated photovoltaic products. The three companies also intend to work together to identify and secure additional sources of silicon. The companies intend to enter into a definitive agreement as soon as practical, subject to the completion of due diligence and the receipt of certain approvals.