Lattice Power Corporation announced a $55.5 million new financing led by IFC, a member of the World Bank Group. The signing ceremony was held at China World Hotel in Beijing on December 8th, 2010. Mr. Junqing Chen, Acting Mayor of Nanchang, Mr. Xiantang Meng, National Development and Reform Commission deputy director of high-tech industry, Mr. Hyun-Chan Cho, Country Manager of China & Mongolia of IFC, Mr. Alex Pan, Managing Director of GSR Ventures, and Mr. Sonny Wu, Chairman and CEO of Lattice Power attended the ceremony.

Lattice Power has developed a disruptive silicon based GaN LED technology, and owns over 150 patents in China and around the world. Comparing to other two technologies for LED, silicon-based LED technology has the advantages of low material cost, good thermal dissipation and simple structure. This technology enables low-cost and large-scale manufacturing, enabling LED light bulbs to be used in millions of households, and will change how people use general lighting in their daily lives.

Since 2009, worldwide attention to the low-carbon economy has been driving vigorous development of the LED industry. In the face of huge market potential, Lattice Power set up and implemented the production capacity expansion plan quickly and took the lead in signing a MOCVD purchase contract with one of two global suppliers – Aixtron. That was Aixtron’s largest single order from Mainland China. By the end of 2010, the production capacity of Lattice Power reached 14 billion chips. In 2011, with the addition of new MOCVD installation, the production capacity of the company will reach 24 billion chips, and the company will become one of largest epitaxial material and chip manufacturers in China.

“LatticePower’s revolutionary Silicon-based GaN LED technology combined with world class technologists and management team will enable the lowest-cost and the best performing solid state light bulbs, and Latticepower is committed to build a world-class technology company in China,” says Lattice Power Chairman Sonny Wu. Lattice Power Director and Executive Vice President Min Wang comments, “We are lucky that we took advantage of the fast growing LED market opportunity. With securing the key equipments and capital investments, LatticePower is well positioned to lead the solid state lighting development and realization”.

“This round of new financing for Lattice Power’s production capacity expansion led by the world-class investment institutions demonstrated the commitment of the investment community to the emerging green technology and energy-saving industry, and the recognition of domestic and foreign investment institutions on the accomplishment achieved by Lattice Power,” said Managing Director of GSR Ventures Alex Pan. Since 2006, GSR Ventures has been the leading investor for Lattice Power, joined by Mayfield Fund, AsiaVest Partners, Keytone Ventures, and Temasek Holdings, with total over $70 million U.S. dollar investment, and devoted to the industrialization of China’s original technology. The company has already successfully launched a variety of LED products for the fast-growing LED display, LED backlighting and solid state lighting application.

This new round of investment not only provides sufficient capital to support Lattice Power’s production capacity expansion, but also enhances Lattice Power’s worldwide presence. The combination of the capital and technology will drive development of this green industry to a new level, contribute to the development of energy saving and emission reduction initiatives around the world, and help to maintain harmonious development between human beings and the environment.

About LEDs
LEDs have a wide range of applications such as display and lighting, and have the significant advantages of saving energy, protecting environment, long lifetime, and safe operation. An LED light bulb consumes only one-tenth the electric power comparing to incandescent bulb, and one-half to a fluorescent light. China consumes at least 300 billion kWh of electricity annually on lighting. If LEDs replaced majority of the incandescent and fluorescent lamps, one-third of the total electricity consumption for lighting, or about 100 billion kWh, would be saved. This saving is equivalent to the annual generating capacity of the Three Gorges Project. The LED industry is regarded as one of the most promising high-tech industries for the twenty-first century.

About LatticePower
In an increasingly virtualized, networked and globalized world, effective communication becomes even more important. Today, display and backlight, especially LED backlight, is an essential part of mobile phones, TV, notebooks or automobile, which are the primarily communication devices we are using every day. Light and energy are eternal to our life as in the physical universe. The mission of Lattice Power is to create the best LED light bulb in the world by taking full advantage of the benefits of silicon substrate based GaN LED technology. LatticePower enables better communication for the world.

Lattice Power realizes large-scale production for LED light bulbs through lab discovery, technology innovation and industrial manufacturing over many years of scientific research and industrial development. This is the greatest industrial revolution since Thomas Edison invented the incandescent light bulb in 1874. Lattice Power is proud to be part of this green revolution. Our revolutionary technology of GaN-based LED on silicon substrate will fundamentally change the future of the LED industry and solid-state lighting.

The company is backed by leading venture investors including GSR Ventures, Temasek Holdings, Mayfield Fund, AsiaVest Partners and Keytone Ventures. Our products have been used in many areas like LCD TV backlight and general lighting. Our 6”/8” silicon-based LED technology enabled low-cost and large-scale manufacturing, enabling LED bulbs to be used in millions of households, and will change how people use general lighting in their daily lives.

The success of LatticePower is rooted in five key success factors and corporate values: (1) A global Team (Management and Technology) ;(2) Technology Innovation; (3) Venture Financed Corporate Structure and Incentives; (4) Market Centric Product Development; (5) Continuous Improvement

LatticePower, with disruptive technologies, enabling the next generation of world class solid state lighting companies, proudly from China.

For more details, please refer to www.latticepower.com

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.