Hong Kong, China, 11 June 2014 - United Photovoltaics Group Limited (“United PV” or the “Company,” stock code: 00686.HK, whose largest shareholder is China Merchants New Energy Group “CMNE”), a leading solar power plant investor and operator in China, today announced that the Company entered into a memorandum of understanding (“MOU”) with Power Solar Investments Limited (“Power Solar”), with an intention to sell the Company’s segment of manufacturing and sales of solar cells in Quanzhou, Fujian. According to its 2013 annual report, the solar cells segment reported a loss of HK$123 million.

Pursuant to the MOU, the Company intended to sell 70% of the entire issued share capital of Fortune Arena (the “Target Company”) to Power Solar at a total consideration of not less than HK$210 million. Fortune Arena is a wholly-owned subsidiary of the Company, specializing in manufacturing and sales of solar cells. The asset valuation for the Target Company will be conducted by an international asset valuation firm. The entering into the formal agreement is subject to the consent of the holders of the US$120 million 5% secured guaranteed convertible bonds due 2016. The transaction will finally be decided by votes from the shareholders at the Special General Meeting. Mr. Alan LI, Chairman of the Board and CEO of United PV, said: “We believe the transaction is at the interest of the Company and its shareholders. The disposal of non-core segment will help enhance our liquidity, and we can further sharpen our business focus on the acquisition and operation of solar power plants with more concentrated resources. It is expected that the solar power plants segment will bring sustainable and stable returns in a long run. Currently, we are developing a professional platform for solar power plants operation: our 531.7MW grid-connected PV plants are in good operation; all financing, mergers and acquisitions are shaping up; we have also launched the world’s first real-time mobile app EBOD for monitoring operational solar power plants.”