Southwall Technologies and Sound Solutions Windows & Doors Form Joint Venture − Southwall Insulating Glass

Date: 12 April 2008

New Company Formed to Accelerate Production in Response to Increasing Demand for High Performance Insulating Glass PALO ALTO, Calif.--Southwall Technologies Inc., (OTCBB:SWTX), a worldwide innovator of energy-saving films and glass products, announced today the formation of Southwall Insulating Glass, a joint venture with Chicago-based manufacturer Sound Solutions Windows & Doors.





The new company will incorporate an automated production system to improve cost-competitiveness and establish broader adoption of its innovative Heat Mirror® insulating glass. The company is being formed in response to the demand for higher energy efficiency in residential and commercial building, which has created new opportunity for Heat Mirror’s superior R-6 to R-20 insulating performance.



“Glass remains the weak link in the performance of the building envelope and is responsible for approximately 30 percent of a building’s total carbon emissions,” said Dennis Capovilla, Southwall’s President. “While higher performance Heat Mirror insulating glass is available today, the cost of manufacturing has limited its widespread adoption. Southwall is committed to bringing Heat Mirror’s performance to the mainstream market by establishing lower cost technology that is suitable for high-volume production.”



The new company combines the strength of Southwall’s 30 years experience in developing advanced coated films and suspended film technology with the insulating glass production experience of Sound Solutions.



“I am a believer in the energy-saving performance of Heat Mirror technology,” said Ron Spielman, President of Sound Solutions and former president of Republic Windows & Doors, one of the largest window & door manufacturers in the Midwest for over 25 years. “Partnering with Southwall is an opportunity to directly address the manufacturing challenges that will enable Heat Mirror to better service the increasing demand for more energy-efficient insulating glass.”



Added Mr. Capovilla: “We intend to work with our existing network of window fabricators to propagate the developments of this joint venture and accelerate the adoption of Heat Mirror in the broader market. Energy conservation is one of the most effective tools we have to dramatically impact climate change in the near-term, and Heat Mirror insulating glass can play an important role.”



The new company will be located in Chicago and is scheduled to begin production of Heat Mirror insulating glass and other high performance glazing in 2008.



ABOUT SOUTHWALL TECHNOLOGIES



Southwall Technologies Inc., (OTCBB:SWTX) is recognized worldwide as a leading innovator in the development and manufacture of high performance, energy-saving films and glass products that dramatically improve the energy efficiency of architectural and automotive glass. The company introduced the world’s first low-e coated glass product in 1981, a pioneering technology recognized in 1999 by Popular Science magazine as one of the "Top 100 Inventions of the Millennium.” Southwall is an ISO 9001:2000-certified manufacturer with customers in over 25 countries, including Audi, BMW, Daimler-Chrysler, Guardian, Peugeot-Citroen, Philips, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.



SAFE HARBOR PROVISION



Certain statements contained in this release are intended to be covered by the Safe Harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. This release contains forward-looking statements, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements are only predictions and actual results may vary.

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