SunPower Corporation (NASDAQ:SPWR) , a Silicon Valley-based manufacturer of high efficiency, commercially available solar cells, solar panels and solar systems, and its subsidiary, PowerLight Corporation, a leading global provider of large-scale solar power systems, have been selected for an award, pending finalization of the grant agreement, under the Department of Energy’s Solar America Initiative (SAI). Once negotiations of the grant agreement are complete, SunPower and PowerLight may be awarded up to $10.5 million in funding for 2007.

SunPower and PowerLight will use the funding to implement cost improvements across the value chain, including innovations in producing ingots, wafers, high-efficiency solar cells and panels, system design, as well as improved delivery and installation efficiency.

In addition, the two companies will work to reduce solar system costs through improvements in the design and manufacture of integrated photovoltaic systems. This work will be conducted with a team of technology and institutional partners.

The Solar America Initiative is focused on accelerating widespread commercialization of clean solar energy technologies by 2015 and to provide the U.S. additional electricity supply options while reducing dependence on fossil fuels and improving the environment.

The Solar America Initiative aims to achieve market competitiveness for solar electric power through government partnerships with industry, universities, national laboratories, states, and other public entities by funding new research and development activities.

About SunPower
SunPower Corp. designs, manufactures and markets high-performance solar electric technology worldwide. SunPower’s high-efficiency solar cells and panels generate up to 50 percent more power per unit area than conventional solar technologies and have a uniquely attractive, all-black appearance. SunPower’s PowerLight subsidiary is a leading global provider of large-scale solar power systems, with over 100 megawatts installed. For more information on SunPower please visit the SunPower website at www.sunpowercorp.com. SunPower is a majority-owned subsidiary of Cypress Semiconductor Corp. (NYSE:CY) .