GT Solar Announces Workforce Reduction in Merrimack Production Facility; Maintains Full-Strength Employment in Reactors Business

MERRIMACK, N.H.--(BUSINESS WIRE)--GT Solar International (NASDAQ: SOLR) today announced that it is reducing its production workforce at the company’s Merrimack solar furnace operations by 25 employees. Employment in all other segments and at the company’s other locations are being maintained at full strength based on continued strong demand for its polysilicon reactors.

“It is unfortunate that we were required to take this action and we regret the impact this will have on those affected employees and their families at this time of year”

The workforce reduction was related to slower directional solidification system (DSS) furnace production rates over the next six months as a result of the slower economy and several customer requests in this environment to delay shipments of DSS furnaces under existing contracts. The change in staffing levels was reflected in the annual revenue guidance for the fiscal year ending March 28, 2009 that the company provided in early November in conjunction with the announcement of results for the quarter that ended September 27, 2008. To date there have been no order cancellations.

“It is unfortunate that we were required to take this action and we regret the impact this will have on those affected employees and their families at this time of year,” said Tom Zarrella, president and chief executive officer of GT Solar. “We are making a special effort to help them with their transitions in the form of severance and outplacement services. Despite this near-term adjustment, our long-term outlook and competitive positioning in the solar industry remain strong based on our healthy backlog and balance sheet, our leading technology, and our flexible and highly-efficient business model.”

About GT Solar International, Inc.

GT Solar International, Inc. (NASDAQ: SOLR) is a leading global provider of specialized manufacturing equipment and services essential for the production of photovoltaic wafers, cells and modules and polysilicon utilized in the solar power industry. The company's principal products are directional solidification systems and chemical vapor deposition reactors and related equipment.

Forward-Looking Statements

Some of the statements in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. These factors may include our inability to manage our expansion effectively, the possibility of product liability claims, our inability to protect our intellectual property rights, increased competition from other manufacturers of equipment for PV products, changes in the PV industry, risks associated with doing business in foreign countries and various other risks as outlined in GT Solar International, Inc.'s filings with the Securities and Exchange Commission, including the Company’s Prospectus dated July 23, 2008 and filed pursuant to Rule 424(b) under the Securities Act, as amended, on July 24, 2008, and the Company’s Quarterly Report on Form 10-Q filed on November 7, 2008. Statements in this press release should be evaluated in light of these important factors. GT Solar International, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.