Southwall Technologies and Sound Solutions Windows & Doors Form Joint Venture --...

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

New Company Formed to Accelerate Production in Response to
Increasing Demand for High Performance Insulating Glass
PALO ALTO, Calif.--(Business Wire)--
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(R) 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.

Southwall Technologies
Kathy Taylor, 650-798-1218
ktaylor@southwall.com

Copyright Business Wire 2008