EMCORE PRESS RELEASE: WORLDWATER INVESTMENT
Published on December 5, 2006
EXHIBIT
99.1
Press
Release
EMCORE
CORPORATION ANNOUNCES STRATEGIC INVESTMENT IN TERRESTRIAL SOLAR COMPANY
WORLDWATER & POWER CORP.
Companies
to Cooperate in System Development and Terrestrial Marketing of Solar
Concentrator Cells and Solar Power Systems Technology
EMCORE
enters exclusive supply agreement for high efficiency multi- junction solar
cells and concentrator subsystems for 26.5 Megawatts over three
years
Somerset,
NJ—November 30, 2006— EMCORE CORPORATION (NASDAQ: EMKR), a leading provider of
compound semiconductor-based components and subsystems for the broadband, fiber
optic, satellite and solar photovoltaic markets, and WorldWater & Power
Corp. (OTC BB: WWAT.OB), developer and marketer of photovoltaic systems for
terrestrial power generation including proprietary electrical motor drive
technology for water pumping, today jointly announced that EMCORE has agreed
to
invest $18 million in WorldWater in return for an amount of convertible
preferred stock and warrants of WorldWater, equivalent to an approximately
31%
equity ownership in WorldWater, or approximately 26.5% on a fully diluted basis.
The
two
companies also announced the formation of a strategic alliance and supply
agreement under which EMCORE is the exclusive supplier of high-efficiency
multi-junction solar cells, assemblies and concentrator subsystems to WorldWater
with a contract valued at up to $100 million over the next 3 years.
On
November 29, 2006, EMCORE invested $13.5 million in WorldWater, representing
the
first tranche of its $18 million investment. The investment of the remaining
$4.5 million second tranche will occur once the definitive strategic agreement
is signed and certain other conditions are met. The parties expect the execution
of the definitive strategic agreement and second closing to occur before the
end
of the year. In connection with the investment, EMCORE will also gain two seats
on WorldWater’s Board of Directors.
“This
strategic investment represents a shift in EMCORE’s terrestrial photovoltaic
strategy by becoming, with WorldWater, a solution provider rather than just
a
component supplier. This investment will add strategic strength to both of
our
companies,” said Reuben F. Richards, Jr., President and CEO of EMCORE. “By
connecting EMCORE’s space and terrestrial cell technology with WorldWater’s
specialized electrical drives for applications such as pumping water for water
utilities and irrigation for farms, we should command a significant segment
of
the rapidly growing distributed solar energy market in the U.S. and abroad.
A
significant percentage of the world’s electrical consumption is used to run
pumps and motors. WolrdWater’s broad marketing experience and capabilities
combined with EMCORE’s terrestrial solar cell and system technology will lead to
significant market opportunities for utility scale power as well as for markets
on the retail side of the meter such as water pumping for agriculture and
village scale power. We are impressed with the progress WorldWater has made,
particularly in the last year increasing revenues from $2 million in 2005 to
a
projected $17 million for 2006.”
Quentin
T. Kelly, WorldWater’s Founder and Chairman, commented, “Our technological mix
is key to this strategic partnership. Concentrated photovoltaic systems are
the
keys to reducing the cost per watt of power generated. In addition, this major
financing from EMCORE will enable WorldWater to substantially increase our
core
business of blending and/or replacing the electric grid with solar power and
supplying solar electric drives able to operate motors and pumps up to 600
hp
for large commercial projects, whether in the agricultural, water utility or
other industrial fields.” Mr. Kelly added, “EMCORE’s $18 million investment will
help us to meet our working capital needs in expectation of achieving major
growth in revenue next year.”
About
EMCORE
EMCORE
Corporation offers a broad portfolio of compound semiconductor-based products
for the broadband, fiber optic, satellite and solar power markets. EMCORE’s
Fiber Optic segment offers optical components, subsystems and systems for high
speed data and telecommunications networks, cable television (CATV) and
fiber-to-the-premises (FTTP). EMCORE’s Photovoltaic segment provides products
for both satellite and terrestrial applications. For satellite applications,
EMCORE offers high efficiency Gallium Arsenide (GaAs) solar cells, Covered
Interconnect Cells (CICs) and panels. For terrestrial applications, EMCORE
is
adapting its high-efficiency GaAs solar cells for use in solar concentrator
systems. For further information about EMCORE, visit www.emcore.com.
About
Worldwater
WorldWater
& Power Corporation is a full-service, international solar electric
engineering and water management company with unique, high-powered and patented
solar technology that provides solutions to a broad spectrum of the world’s
electricity and water supply problems. For more information about WorldWater
& Power Corp., visit the website at www.worldwater.com.
Disclaimer:
The
information provided herein may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 relating to future events that involve risks
and
uncertainties. Words such as "expects," "anticipates," "intends," "plans,"
"believes," and "estimates," and variations of these words and similar
expressions, identify these forward-looking statements. Actual operating results
may differ materially from such forward-looking statements and are subject
to
certain risks, including risks arising from: the risk of loss of investment
associated with a minority investment in a small cap company with a history
of
losses; the financial impact of accounting for a percentage of WorldWater’s
losses under the equity method; the potential cancellation of WorldWater’s
purchase order in the event EMCORE is unable to develop a cost competitive
concentrator system or adapt its solar cells for use in WorldWater’s sytems; the
risks associated with EMCORE’s ability to successfully develop and commercialize
a concentrator photovoltaic system incorporating EMCORE’s multijunction solar
cells; and other risks and uncertainties described in EMCORE's filings with
the
Securities and Exchange Commission. The forward-looking statements contained
in
this news release are made as of the date hereof, and EMCORE does not assume
any
obligation to update the reasons why actual results could differ materially
from
those projected in the forward-looking statements.
Contacts:
EMCORE
Corporation
Tom
Werthan - Chief Financial Officer
(732)
271-9090
info@emcore.com
TTC
Group
Victor
Allgeier
(646)
290-6400
vic@ttcominc.com