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STR Holdings, Inc. Completes Phase I Expansion and Announces Additional 1.0 GW Capacity Expansion at Its Malaysia Plant

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^{Published in Science and Technology on Tuesday, July 13th 2010 at 5:45 GMT by Market Wire}  

ENFIELD, Conn.--([ BUSINESS WIRE ])--STR Holdings, Inc. (NYSE: STRI) announced today that the 1.0 GW expansion of its Malaysia plant has become operational to meet the growing global market demand for its industry-leading PhotoCap^® solar encapsulant materials. Total production capacity at the Malaysia facility has now been doubled to 2.0 GW, bringing the Companya™s global installed capacity to 6.35 GW.

"We continue to experience strong growth in Asia and our capacity expansion will aid in increasing our market share in this region, both with existing and new customers."

aIncreasing the production capacity at our Malaysia facility is an important part of our strategic effort to grow our business in Asia and further our aOne plus Chinaa™ growth strategy,a said Dennis L. Jilot, Chairman, President and Chief Executive Officer of STR Holdings. aWe continue to experience strong growth in Asia and our capacity expansion will aid in increasing our market share in this region, both with existing and new customers.a

The Company also reports that it has placed orders for an additional 1.0 GW of production capacity to be installed during the third quarter of 2011, bringing the total installed capacity in Malaysia to 3.0 GW. The Company previously announced a building expansion to double the size of its existing production and warehouse space in Malaysia, providing floor space for total capacity of up to 4.0 GW. It is scheduled for completion by the end of the first quarter of 2011.

About STR Holdings, Inc.

STR Holdings, Inc. is a leading global provider of high quality, superior performance solar encapsulants to the photovoltaic module industry. It is also one of the worlda™s leading providers of consumer product quality assurance testing, audit, inspection and responsible sourcing services, which ensures that suppliers and retailers have the highest level of confidence in the quality and safety of their products and in the social standards of the supply chain producing them. Further information about STR Holdings, Inc. can be obtained via the Companya™s website at [ www.strholdings.com ].

Forward Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Companya™s results of operation and long-term strategy. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties discussed in Company filings with the Securities and Exchange Commission, which could cause the Companya™s actual results to differ materially from expected results. The Company undertakes no obligation to publicly update any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise, except as may be required by law.