- Provides Solar Thin Film an Opportunity to Invest in Strong R&D and a New Order Pipeline that is Expected to Contribute to the Company’s Substantial Backlog -

DIX HILLS, NY - Solar Thin Films, Inc. (OTC BB:SLTN.OB), a developer, manufacturer and marketer of manufacturing equipment for the production of "thin-film" amorphous silicon and CIGS photovoltaic modules, has signed a letter of intent to acquire a majority 60% interest in BudaSolar Technologies Co., Ltd. for an initial $3 million in working capital funding, with an option to purchase the remaining 40% minority interest, based on a multiple of earnings, in the combined company described below.

BudaSolar is a developer of thin film technologies and manufacturing equipment headquartered in Budapest, Hungary. The agreement contemplates consolidation of the two companies into a single entity to be called STF Technologies, Zrt. The proposed consolidation, which joins BudaSolar operations with Kraft Elektronikai Zrt, Solar Thin Film’s main operating subsidiary in Hungary, would strengthen the engineering team, secure local equipment manufacturing capacity, and expand production capability.

"This proposed agreement to invest in BudaSolar Technologies is another step forward in our goal to become a leader in supplying cost-effective thin film photovoltaic module manufacturing equipment," said Peter Lewis, chief executive officer of Solar Thin Films. "We are joining together with a group of individuals who have led our industry in the design, installation and commissioning of turnkey amorphous silicon lines producing thin film amorphous silicon photovoltaic modules. BudaSolar offers Solar Thin Films leading-edge technical expertise in the development of amorphous silicon and micro-crystalline/amorphous tandem cells and some key BIPV technologies, as well as access to a strong pipeline of new business. Our combined expertise should offer us a strong competitive advantage in the marketplace."

About Solar Thin Films

Solar Thin Films (www.solarthinfilms.com) develops, manufactures and markets a complete line of manufacturing equipment for the production of "thin-film" amorphous silicon and CIGS photovoltaic ("PV") modules, together with a wholly owned subsidiary based in Budapest, Hungary. Personnel associated with the company have been responsible for the setup of nearly a dozen amorphous silicon photovoltaic factories worldwide. The Company sells both "turnkey systems" to customers including CG Solar in China and Grupo Unisolar in Spain, and contracted equipment to customers including EPV Solar (Hamilton, NJ, USA). Its line of proven, cost-effective thin-film photovoltaic manufacturing equipment positions the Company to take advantage of the rapidly growing demand for solar modules and an expected market shift towards "thin film" PV modules as part of a cost effective, "clean technology" energy solution.

Forward-Looking Safe Harbor Statement

Statements in this news release regarding future financial and operating results, potential applications of the Company's technology, opportunities for the Company, and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements including: limited operating history, need for future capital, and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in the Company's periodic reports, including Forms 10-KSB, 10-QSB, 8-K, and other forms filed with the Securities and Exchange Commission ("SEC").

These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties.