SAN JOSE, Calif., Sept. 25 /PRNewswire-FirstCall/ -- SunPower Corporation (Nasdaq: SPWR), a Silicon Valley-based manufacturer of high-efficiency solar cells, solar panels and solar systems, today announced that the last reported sale price of its class A common stock on at least 20 of the last 30 trading days during the fiscal quarter ending September 28, 2008 has equaled or exceeded $70.94, which represents 125% of the conversion price for one series of its outstanding senior convertible debentures. Accordingly, pursuant to the terms of the indenture governing its $200 million aggregate principal amount of 1.25% senior convertible debentures due 2027, the market price conversion trigger has been satisfied and the debentures may be converted at the holders' option during SunPower's fourth fiscal quarter ending December 28, 2008.

Although the market value of the debentures relative to the value holders would receive upon conversion has declined during the third fiscal quarter, the current market value of the debentures remains in excess of the conversion value. Accordingly, if the market value of the debentures remains at these levels, holders might not have an economic incentive to convert their debentures. The current capital market conditions, credit environment, and the recent prohibition on 'naked' short selling announced by the U.S. Securities and Exchange Commission could, however, create incentives for holders to convert their debentures that did not exist in prior quarters.

Pursuant to the terms of the indenture, the principal amount of any debentures surrendered for conversion must be settled in cash. To the extent that the conversion obligation exceeds the principal amount of any debentures converted, SunPower must satisfy the remaining conversion obligation of the 1.25% senior convertible debentures due 2027 in shares of its class A common stock.

As a result of the class A common stock price conversion trigger, SunPower will classify the $200 million aggregate principal amount of the debentures as short-term debt on its September 28, 2008 balance sheet.