October 21, 2008

Montreal, Canada: ICP Solar Signs LOI to Acquire Ibersolar Energía

ICP Solar Technologies has entered into a binding Letter of Intent to acquire Ibersolar Energía, S.A., a leading European manufacturer and supplier of solar photovoltaic systems, solar thermal systems, and absorption units. The private company, established in 1999 and headquartered in Spain, has annualized sales of approximately €120 million and has been profitable since 2005. Ibersolar photovoltaic modules provide clean electrical energy for residential, commercial and industrial applications worldwide.

Under the terms of the LOI, ICP will acquire 100% of the shares of Ibersolar. The Parties agree and undertake to enter into a mutually agreeable definitive share purchase agreement and any other documents necessary for the acquisition within six weeks of the signing of the LOI, or as soon as practicable thereafter. In addition, the closing of the acquisition is contingent upon financing by ICP of a minimum of $15 million on terms acceptable to both parties. A financing plan (i.e., term sheet) must be arranged before December 15, 2008; additional terms are outlined in a Form 8K filed with the SEC. The new company structure after the acquisition, but before the financing, will be owned 20% by existing ICP shareholders and 80% by existing Ibersolar shareholders on a fully diluted basis.

“I am extremely pleased to announce the most important strategic decision in our company’s history,” said Sass Peress, Chairman and CEO of ICP Solar. “By acquiring Ibersolar, ICP will see a twenty-fold increase in the size of its business and automatically become a recognized player in the burgeoning European market. Ibersolar brings with it excellent solar applications, established R&D, strong supplier relationships, and a substantial customer base that spans commercial, industrial, and government entities across the continent. We expect to realize distribution synergies and cross-fertilization of product lines immediately – particularly with regard to our Sunsei Wireless Greenmeters – and the acquisition is anticipated to be accretive to earnings within the first year of operation. Ibersolar will also be able to leverage our proprietary solar rooftiles for applications in Europe and elsewhere."

“This is a game changer and one that we feel will bolster the company’s long-term growth outlook and solidify our position in the solar sector. Upon completion of the merger, ICP will head into 2009 with a rapidly-expanding customer base, vast array of enticing solar products, and the technology to offer some of the most cost-efficient solutions to a world demanding clean, renewable energy.”

Ibersolar Energía offers a wide range of PV modules, grid-connected and off-grid inverters, mounting systems, solar trackers and monitoring equipment, as well as complete solar thermal systems, including high performance collectors, solar boilers, controllers, and thermal siphons. The company has developed a roof system which integrates flexible amorphous silicon modules with waterproof membrane solutions, providing the highest guarantee of impermeability in a roof while achieving maximum energy production from the photovoltaic modules.

Further details about: ICP Solar Technologies, Inc and Ibersolar Energía