Canadian Solar and City Solar AG Partner on Large-Scale Solar Farm Projects in Germany and Spain

Canadian Solar and City Solar AG Partner on Large-Scale Solar Farm Projects in Germany and Spain

June 04, 2007

    JIANGSU, China, June 4 /Xinhua-PRNewswire/ -¨C Canadian
Solar Inc. ("the Company", or "CSI")
(Nasdaq: CSIQ) has commenced delivery of solar modules to
City Solar AG, Germany for a series of large-scale,
ground-mounted solar farm projects.  The deliveries are
part of an annual project sales contract CSI signed with
City Solar in January, 2007 to supply approximately 31 MW
of solar modules to 7 specific projects in Germany and
Spain.  About half of the projects are expected to be
completed before December 31, 2007.  The contract is worth
approximately 80 to 90 million Euro.  CSI expects to
deliver 4.2MW solar modules by July 2007 for the first
project in Germany.  Deliveries for the other projects are
expected to start in June and July, 2007. 

    Dr. Shawn Qu, CEO of CSI, commented, "We continue
to execute our two-leg strategy in sales, which emphasizes
long-term partnerships with both tier-one regular
distributors and top-notch project-based companies. Our
collaboration with City Solar clearly demonstrates the
success of this strategy. Project-based channel sales like
this one allow us to plan our production several quarters
ahead, in order to provide stability to both CSI and its
customers." 

    Mr. Steffen Kammler, CEO of City Solar, AG, commented,
"City Solar's vast experience in multi-MW scale solar
project development, planning and implementation, brings
turn-key solutions to commercial renewable energy
investors. We have developed unique mounting and panel
matching technologies. Combining our expertise with the
outstanding quality of CSI modules will help us to provide
the best-performing and the most cost-effective solar
systems to the market place."

    About Canadian Solar Inc. (Nasdaq: CSIQ) 

    Founded in 2001, Canadian Solar Inc. (CSI) is a
vertically integrated manufacturer of solar cell, solar
module and customer-designed solar application products
serving worldwide customers.  CSI is incorporated in Canada
and conducts all of its manufacturing operations in China. 
Backed by years of experience and knowledge in the solar
power market and the silicon industry, CSI has become a
major global provider of solar power products for a wide
range of applications.  For more information, please visit
http://www.csisolar.com .

    About City Solar, AG

    City Solar AG is a leading player in the field of
industrial scale photovoltaic power plants. The company was
founded in 2003 and has its headquarters in Bad Kreuznach,
Germany. City Solar´s core business is the
design, construction, and operation of solar power plants.
In addition to activities in Germany, City Solar is
becoming increasingly involved in Europe -- particularly in
Spain, Italy and Greece. In Beneixama, Spain, the company is
currently building the world's largest PV power plant with a
nominal power of 20 MW which will be completed in August
2007. The company directs a great part of its efforts to
its own R+D activities. This department has developed and
patented a new process to produce solar grade silicon. For
more information, please visit http://www.citysolar.de .

    Safe Harbor/Forward-Looking Statements

    Certain statements in this press release including
statements regarding expected future financial and industry
growth are forward-looking statements that involve a number
of risks and uncertainties that could cause actual results
to differ materially. These statements are made under the
"Safe Harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by such terms
as "believes," "expects,"
"anticipates," "intends,"
"estimates," the negative of these terms, or
other comparable terminology. Factors that could cause
actual results to differ include general business and
economic conditions and the state of the solar industry;
governmental support for the deployment of solar power;
future shortage or availability of the supply of
high-purity silicon; demand for end-use products by
consumers and inventory levels of such products in the
supply chain; changes in demand from significant customers,
including customers of our silicon materials sales; changes
in demand from major markets such as Germany; changes in
customer order patterns; changes in product mix; capacity
utilization; level of competition; pricing pressure and
declines in average selling price; delays in new product
introduction; continued success in technological
innovations and delivery of products with the features
customers demand; shortage in supply of materials or
capacity requirements; availability of financing; exchange
rate fluctuations; litigation and other risks as described
in the Company's SEC filings, including its registration
statement on Form F-1 originally filed on October 23, 2006,
as amended. Although the Company believes that the
expectations reflected in the forward looking statements
are reasonable, it cannot guarantee future results, level
of activity, performance, or achievements. You should not
place undue reliance on these forward-looking statements.
All information provided in this press release is as of
today's date, unless otherwise stated, and CSI undertakes
no duty to update such information, except as required
under applicable law.

    For more information, please contact:

     For Canadian Solar Inc.
 
     In Jiangsu, P.R. China
      Bing Zhu, 
      Chief Financial Officer 
      Canadian Solar Inc.
      Tel:   [phone]
      Email: [e-mail]

     In the U.S.
      David Pasquale
      The Ruth Group
      Tel:   [phone]
      Email: [e-mail]

     For City Solar
 
      AGStephan Brust
      Head of Public Relations
      Tel:   [phone]
      Email: [e-mail]