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SunPower Signs Joint Venture Agreement in China

               SunPower Signs Joint Venture Agreement in China

Partners with TZS, Inner Mongolia Power and Hohhot City to Manufacture and
Deploy SunPower C7 Tracker for Inner Mongolia, Other China Regions

PR Newswire

SAN JOSE, Calif., Dec. 3, 2012

SAN JOSE, Calif., Dec. 3, 2012 /PRNewswire/ --SunPower Corp. (NASDAQ: SPWR),
a Silicon Valley-based manufacturer of high-efficiency solar cells, solar
panels and solar systems, today announced that it signed a definitive
agreement to form a joint venture with partners Tianjin Zhonghuan
Semiconductor (TZS), Inner Mongolia Power Group (IMP) and Hohhot Jinqiao City
Development Company (HJCD) for the manufacturing and deployment of the
company's proprietary SunPower® C7 Tracker (C7) concentrator technology in the
Chinese market.

The joint venture, based in Hohhot, Inner Mongolia, PRC, will manufacture and
deploy SunPower's high efficiency, C7 concentrator solar systems in Inner
Mongolia and other regions in China. Under the terms of the definitive
agreement, SunPower will invest $15 million, of the total capitalization of
the joint venture of $60 million, for a 25 percent ownership stake. The joint
venture is subject to the approval of the PRC government with initial C7
deployment expected to begin by the end of 2013. 

"This agreement capitalizes on the capability of SunPower's next generation C7
technology to deliver industry leading cost effective energy," said Tom
Werner, SunPower president and CEO. "Working together with our team of strong
local partners who bring different strengths to this project, we believe that
we can deploy significant volumes of C7 power plants to help serve China's
growing need for clean power. We also expect that this venture will
facilitate the development of a low cost, high volume C7 supply chain and
accelerate our C7 cost reduction roadmap."

"This joint venture collaboration embeds essential winning factors including
our excellent natural resources, the best photovoltaic technologies and
diligent, committed partners," said Huadong You, chairman of TZ Group. "Our
four-party, three country landmark partnership sets a role model for the
industry and also embraces challenges for a sustainable future."

"This joint venture is a new milestone in the development of the PV industry
in Hohhot City and the Inner Mongolia Autonomous Region," said Yi Qin, mayor
of Hohhot City. "We look forward to leveraging the strengths of Hohhot City
to support the success of this venture and have full confidence in this
winning collaboration among the four partners."

"We are fully committed to the success of this joint venture and we will meet
the expectations of all levels of government, as well as those of our
partners," said Fusheng Zhang, CEO of IMP. "IMP has an excellent grid
infrastructure, leading experience in grid integration of renewable energy and
strong resources."

The SunPower C7 Tracker combines single-axis tracking technology with rows of
parabolic mirrors, reflecting light onto 22.8 percent efficiency SunPower
Maxeon® cells, the world's most efficient commercially available solar cells.
Using mirrors to reduce the number of solar cells required to generate
electricity lowers the levelized cost of energy by up to 20 percent compared
to competing technologies. For example, a 400-MW C7 power plant requires less
than 70 MW of SunPower solar cells.

About SunPower
SunPower Corp. (NASDAQ: SPWR) designs, manufactures and delivers the highest
efficiency, highest reliability solar panels and systems available today.
Residential, business, government and utility customers rely on the company's
quarter century of experience and guaranteed performance to provide maximum
return on investment throughout the life of the solar system. Headquartered in
San Jose, Calif., SunPower has offices in North America, Europe, Australia,
Africa and Asia. For more information, visit www.SunPowercorp.com.

About Tianjin Zhonghuan Semiconductor
Tianjin Zhonghuan Semiconductor Co., Ltd. (TZS) is a Tianjin-based PRC listed
company with a registered capital of RMB 724,244,412. TZS is committed to the
semiconductor energy-efficiency industry and the new energy industry, and is
an integrated high-tech enterprise with research, production, operation and
venture capital functions. Its main products include vertical pulling
monocrystalline, zonemelting monocrystalline, polished wafer, semiconductor
power devices and rectifiers used in the semiconductor energy-efficiency
sector; and monocrystalline silicon used in the new energy sector. These
products are widely applied in smart grid transmission, new-energy vehicles,
high-speed railways, inverters for wind power, integrated circuits, consumer
electronics, aerospace, photovoltaic power, and other areas.

About Inner Mongolia Power Group
IMPC (Group), solely owned by Inner Mongolia Autonomous Region, is the only
provincial-level independent power grid company outside the National Grid and
China Southern Grid. IMPC constructs, operates and manages the power grid
covering 8 Inner Mongolia cities including Hohhot, serving an area of 720
thousand square kilometers and a population of 13.8 million. At the behest of
the Inner Mongolia Autonomous Region, it also manages state owned enterprises
including Power Design, Power Science & Development, Power Construction
companies.

About Hohhot Jinqiao City Development Company
Located in Jinqiao Development Zone of Hohhot City, Hohhot Jinqiao City
Development Company is a state-owned company to invest in and finance the
projects related to city infrastructure development and improvement. HJDC was
founded on April 2, 2001, with registered capital of RMB 58M.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that do not represent historical facts and may be
based on underlying assumptions. SunPower uses words and phrases such as
"agreement to," "will," "expected to," "believe," "expect" and similar
expressions to identify forward-looking statements in this press release,
including forward-looking statements regarding: (a) establishment of a joint
venture in China; (b) the joint venture successfully manufacturing and
deploying C7 concentrator systems; (c) expected C7 deployment by the end of
2013; (d) deploying significant volumes of C7 power plants; and (e) the
development of a low cost, high volume C7 supply chain and accelerating C7
cost reduction roadmap. Such forward-looking statements are based on
information available to SunPower as of the date of this release and involve a
number of risks and uncertainties, some beyond SunPower's control, that could
cause actual results to differ materially from those anticipated by these
forward-looking statements, including risks and uncertainties such as: (i)
the joint venture not able to obtain the approvals required from PRC
government for its establishment; (ii) increasing supply and competition in
the industry and lower average selling prices, and the joint venture's ability
to compete in the Chinese market; (iii) the impact of regulatory changes and
the continuation of governmental and related economic incentives promoting the
use of solar power, including the timing and magnitude of feed-in-tariff
policy in the PRC; (iv) potential difficulties associated with operating the
joint venture; (v) the joint venture and SunPower's ability to create a low
cost supply chain for C7 and meet cost reduction plans for C7; (vi) the joint
venture's ability to obtain and maintain an adequate supply of raw materials
and components and the price it pays for such materials; (vii) the joint
venture ability to obtain additional financing; (viii) the joint venture's
ability to offer a competitive product in the Chinese market at a favorable
margin; (ix) general business and economic conditions, including seasonality
of the solar industry and growth trends in the solar industry; (x) SunPower's
ability to successfully enter the Chinese market and operate internationally;
(xi) the joint venture's ability to ramp up manufacturing; (xii) construction
difficulties or potential delays, including obtaining land use rights,
permits, license, other governmental approvals; (xiii) manufacturing
difficulties that could arise; (xiv) trade barriers and potential duties; (xv)
SunPower and joint venture's ability to protect intellectual property; and
(xvi) other risks described in SunPower's Annual Report on Form 10-K for the
year ended January 1, 2012, Quarterly Reports on Form 10-Q for the quarters
ended April 1, 2012, July 1, 2012  and September 30, 2012, and other filings
with the Securities and Exchange Commission. These forward-looking statements
should not be relied upon as representing SunPower's views as of any
subsequent date, and SunPower is under no obligation to, and expressly
disclaims any responsibility to, update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise.

SUNPOWER is a registered trademark of SunPower Corporation in the U.S. and
other countries. All other trademarks are the property of their respective
owners.

SOURCE SunPower Corp.

Website: http://www.sunpowercorp.com
Contact: Investors, Bob Okunski, +1-408-240-5447,
Bob.Okunski@sunpowercorp.com, or Media, Helen Kendrick, +1-408-240-5585,
Helen.Kendrick@sunpowercorp.com