The Quercus Trust Agrees to Cancel Entech Solar Warrants

FORT WORTH, Texas--(BUSINESS WIRE)--Entech Solar (OTC BB: ENSL.OB), a leader in concentrating solar energy systems, announced today that The Quercus Trust, the Company’s largest shareholder, has agreed to cancel Warrants to purchase thirty-eight million (38,000,000) shares of the Company’s common stock in accordance with the terms of a Warrant Cancellation Agreement entered into with the Company.

The Quercus Trust has decided to cancel these warrants in consideration for the Company’s agreement to increase the number of shares available under the Company’s 1999 Stock Option Plan, as amended (“the Plan”), from fifty million (50,000,000) shares to seventy million (70,000,000) shares. The Warrants will be cancelled upon approval of the Company’s stockholders of the increase in the number of shares available under the Plan.

David Gelbaum, trustee of the Quercus Trust and Chairman of Entech Solar’s Board, said, “This increase to the option pool will have the benefit of increasing morale at the company and of helping us attract good people in the future. Quercus believes in sharing upside with the employees.”