IA Global Announces Letter of Intent to Acquire Solar Power Engineering Co Ltd with Annual Sales of $17 Million

SAN FRANCISCO--(BUSINESS WIRE)--IA Global, Inc. (OTCQB: IAGI.OB) (the “Company”) announced the signing of a letter of intent to acquire 100% of Solar Power Engineering Co Ltd from Vegitus Co Ltd, both Japanese companies.

Solar Power Engineering Co Ltd (“Solar Power”) is an engineering services company that provides inspection, maintenance and solar cell production services that enable their customers to achieve industry leading productivity and yield. Solar Power operates out of Nara, Japan and expects to report revenues of approximately $17 million for their core service business during the next 12 months. Solar Power employs 90 engineers and has over 40 years experience in solar production processes that can be easily scaled to help meet the growing worldwide demand for efficient solar cell production.

Solar Power is expected to be acquired for the equivalent of 100,000,000 JPY or approximately $1,145,000 at the current exchange rate. The acquisition is expected to be financed through 50,000,000 JPY cash or debt along with the issuance of 38,166,666 shares of IAGI common stock (or the equivalent of 50,000,000 JPY at $0.015 per share).

The letter of intent is subject to (i) approval of the acquisition by the Board of the Company; (ii) agreement to customary terms and conditions, including a prohibition on issuance of new shares, options or warrants by Solar Power; (iii) resolution between Solar Power and its main bank regarding the outstanding loan balance repayment plan; and (iv) closing of funding. The acquisition is expected to close by December 15, 2010.

“Upon closing, the acquisitions of Solar Power Engineering and Zest would bring our annual revenues to approximately $53-$55 million. Aside from the solid revenue numbers, we are also excited about acquiring this dynamic, best-of-breed solar engineering services company since it provides an opportunity for marketing much needed solar cell production services worldwide,” stated Brian Hoekstra, CEO of IA Global, Inc.