Konarka Secures $45 Million in Private Capital Financing

Leading Investors Back Clean Energy Innovator with Commercialization of
Organic Photovoltaics

Lowell, Mass. – Oct. 1, 2007 – Konarka Technologies, Inc., an innovator in development and commercialization of Power Plastic®, a material that converts light to energy, today announced it has raised $45 million in private capital financing. The financing was led by Mackenzie Financial Corporation, a leading investment management firm with over $60 billion in assets under management, and was co-led by existing investor, Good Energies, a leading investor in the renewable energy industry. Lead investors from prior rounds also participated, including Draper Fisher Jurvetson (DFJ), Asenqua Ventures, New Enterprise Associates (NEA) and 3i. Other participating current investors include Vanguard Ventures, Chevron Ventures, Massachusetts Green Energy Fund, NGEN Partners and Angeleno Group. The financing was agented by Lehman Brothers.

“Konarka has aggressive plans to accelerate the development and commercialization of our polymer-based organic photovoltaic (OPV) technologies for consumer, commercial, BIPV and electronic applications,” commented Rick Hess, president and CEO of Konarka. “This latest round of financing will help to accelerate our plan to bring Konarka’s organic photovoltaic material, Power Plastic, to market.”

Howard Berke, executive chairman of the board at Konarka, stated, “This funding further strengthens our balance sheet as we scale up to introduce Power Plastic commercially. We are in an optimal financial position to launch our renewable energy technology into a variety of markets.”

About Mackenzie Financial Corporation
Mackenzie Financial Corporation is a part of IGM Financial Inc., which trades on the Toronto Stock Exchange under the symbol “IGM”, and a member of the Power Financial Corporation group of companies. Mackenzie, founded in 1967, manages approximately $63.7 billion of assets for more than one million investors. For more information, visit http://www.mackenziefinancial.com/.

About Good Energies
Good Energies is a leading investor in the renewable energy industry, managing the renewable energies portfolio of the COFRA Group, a privately owned group of companies. The current market capitalization of its portfolio is more than $5.5 billion. Good Energies places its emphasis on the interrelated business areas of solar energy, wind energy, load management and green buildings. Good Energies operates globally with offices in London, New York, Toronto, Washington D.C., and Zug. The company invests in all life cycles of companies and pursues a long-term investment approach. Good Energies is guided by the 3-P-principle (3-Ps): people-planet-profit; being an investment firm it also aims to accelerate energy transition and strives to alleviate poverty by improving access to affordable renewable energy. For more information, visit www.goodenergies.com.
           
About Konarka Technologies, Inc.
Konarka builds products that convert light to energy – anywhere. As the leading developer of polymer photovoltaic technology that provide a source of renewable power in a variety of form factors for commercial, industrial, government and consumer applications, Konarka has a broad portfolio of patents, technology licenses and an accomplished technical team. The Company's Power Plastic® technology is focused on delivering lightweight, flexible, scalable and manufacturable products. Konarka Technologies is headquartered in Lowell, Mass., U.S.A., with European headquarters in Nuremberg, Germany, business development offices in Asia and a research and development facility in Austria. For additional information, visit http://www.konarka.com. 

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