Universal Solar Technology Inc. Second Quarter 2010 Results

Universal Solar Technology Inc. (UNSS.OB), a developer of solar grade ingot, wafers and high efficiency solar photovoltaic modules, announced results for the second quarter ended June 30, 2010.

The Company did not have revenues during the second quarter while it focused on completion and startup of the first phase of the new production facilities in Nanyang City, Henan Province. Net loss for the three months ended June 30, 2010 was $207,614 compared to $92,448 for the second quarter of 2009 as a result of the combination of the absence of revenue, and increase in administration and personal expenses. The number of employees has increase from 4 to 114 at the end of the second quarter of 2010 compared to the same period in 2009.

Wensheng Chen, the Board Chairman and CEO of the Company said of the progress, “As of to date, we have completed testing of 8 ingot growers and continue to acquire more equipments to expand the production volume. We obtained operating permits for our high pressure container to be used in our silicon ingots department. During the second quarter of 2010 we have accepted delivery of water cooling system, multi-wire saw and framing machine. We have produced 100,000 pieces of wafers and each may sell $2-$3in the current market. We have hired total 114 employees by the end of June and total 158 employees as of today. For the PV module departments, two assembling groups are under training and may start the production in August. We expect to be in full production by September, 2010.”

Mr. Chen continued, “The Company is now focused on marketing and new customer development.”

In June UNSS announced the signing of a sales contract for $32,600,000 with a group that is part of the largest electricity producer in the Czech Republic. The contract calls for the delivery of 20MW of monocrystaline solar modules to be delivered by the end of 2010. After signing the contract, C.T.O. requested to amend the contract and delay the payment. As of today, we have not received the deposit from our counter party.

In July the Company exhibited at Intersolar North America 2010 held in San Francisco. Mr. Chen noted, “We are very pleased by our reception at this trade show and that we have many sales leads to follow. Visitors to the exhibit were interested in our new factory and production equipment. We expect UNSS will grow quickly becoming a highly efficient supplier to a very rapidly growing market for solar PV products.” Intersolar North America continued its long-standing international focus with trade visitors representing 66 countries and exhibiting companies from 26 countries, reflecting the global perspectives of the solar industry. Over 20,000 trade visitors attended.

The Company also noted that during the six months ended June 30, 2010, the Chairman, Mr. Chen, other officers and companies they control advanced the Company $1,583,628.

Please refer to our 10Q report filed today with the Securities and Exchange Commission for additional information on the results and operations.

ABOUT UNSS

Universal Solar Technology Inc. manufacturers solar products and provides solar power systems using advanced manufacturing technologies and equipments. Products include solar-grade silicon material (ingots and wafers), solar modules, solar lights and solar power systems. Arizona State University Photovoltaic Testing Laboratory has certified that UNSS Photovoltaic Modules satisfy the standards and requirements of the International Engineering Consortium and has passed the standards for selling products to countries in the European Union. www.ustnevada.com/en

Universal Solar has completed the first stage of construction of its new production facility that will have annual production capacity 50MW silicon ingots, 20MW solar wafers and 30 MW solar PV modules. The Company expects to be a highly efficient, international supplier to a very rapidly growing market for solar PV products. Government incentives and the worldwide push for renewable sources of energy are driving the expansion of the photovoltaic energy industry.

Forward Looking Statements:

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of this document, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this document.