STR : July 15, 2024 Update on Wind Down

STR Holdings, Inc. Provides Update

_____________________________________________________________________________________

STR Holdings, Inc. ("STRI" or the "Company") is providing today a status update to shareholders.

STR Holdings, Inc. (OTCMKTS:STRI)

TOLLAND, CT, USA, July 15, 2024 /EINPresswire.com/ ‐‐ As announced on September 14, 2023, the Company's Board of Directors (the "Board") and a majority of stockholders previously approved a Plan of Complete Liquida on and Dissolu on (the "Plan").

As contemplated by the Plan, the Company filed a Cer ficate of Dissolu on, effec ve on October 16, 2023, with the Delaware Secretary of State dissolving the Company and closing the stock transfer books and records for STRI.

Under advice of Delaware Counsel, the Company is pursuing a dissolu on process designed to preserve shareholder value and limit poten al liabili es, with the ul mate goal of maximizing the benefit to shareholders in the form of a distribu on of the Company's cash.

The Company has made significant progress along the dissolu on process, including comple on of public and private no fica ons to solicit poten al creditor claims. No adverse claims were received as a result of these no fica ons. The Company has agreed to con nue prior director and officer indemnity related to ongoing li ga on.

The Company intends to distribute, pro rata in one or more distribu ons, its remaining cash to its stockholders, to the extent that such cash has been determined legally available for such distribu on, and, if pursued by the Board, such distribu on is approved by the Delaware Court of Chancery. Cash is generally considered legally available for distribu on once all poten al liabili es have been paid, or otherwise provided for, in full. Stockholders of record will not be required to take any ac on to

par cipate in a distribu on.

As part of our con nuing wind‐down effort, the Company further reduced recurring execu ve and director compensa on, professional fees, IT fees and net banking costs by approximately 86% vs. the prior year and by approximately 97% since the 2021 Board‐approved wind‐down. We have also completed the formal closing of our administra ve en ty in Hong Kong. The Company no longer owns any foreign en es, and all assets are held in the United States.

Among other ac vi es, the Company con nues to pursue various legal ac ons in India against Lucent Clean Energy PVT LTD demanding payment of monies owed for prior raw material and equipment sales.

As of the date of this publica on, the Company, its execu ves, and certain former business partners remain subject to a legal proceeding brought by former employees, related to the 2021 sale of Specialized Technology Resources España, S.A.U. and certain of its assets. The Company maintains that the case is without merit and expects to con nue its vigorous defense.

The Company reiterates that its es mate of funds that will be legally available for distribu on remains in the range of $0 to $5 million. As of the date of this press release, the Company has 20,152,029 shares of common stock issued and outstanding.

The amount and ming of distribu ons, if any, will depend upon and could be affected, delayed or eliminated by, among other things, (i) the meline for important li ga on against us, the ming of which is beyond the Company's ability to control, (ii) the amount and ming of claim se lements and reserves set aside to address creditors and con ngent liabili es and, to the extent pursued by the Board, requirements of the Delaware Court of Chancery‐in a supervised long‐form dissolu on process, (iii) the expenses incurred by the Company, and (iv) the ming and net proceeds received on the disposi on of its remaining non‐cash assets. In addi on, a creditor could seek an injunc on against, or otherwise seek to interfere with the making of distribu ons to our stockholders, on the ground that the amounts to be distributed were needed to provide for the payment of our liabili es and expenses. Any such ac ons by a stockholder or a creditor could delay, reduce or eliminate the amount available for distribu on to our stockholders, or otherwise cause the Company to abandon its wind‐down plan. The Company cannot ensure that any funds will become available for distribu on or be distributed to its stockholders.

Forward‐Looking Statement Disclaimer: This press release contains forward‐looking statements within the meaning of the Private Securi es Li ga on Reform Act of 1995. Such statements are subject to inherent risks and uncertain es, including statements regarding the Company's proposed winding down of its opera ons and the amount and ming of distribu ons, if any, to its stockholders. The Company is

currently unable to predict the amount or ming of such distribu ons, if any. The amount and ming of
such distribu	ons will depend on and could be affected, delayed or eliminated by any number of risks
and uncertain	es, many of which are not in the control of the Company, including without limita on

those discussed in this press release. Moreover, the Board may modify or abandon its plan to wind down its business and opera ons at any me. The Company undertakes no obliga on to publicly update any forward‐looking statement contained in this press release, whether as a result of new informa on, future developments or otherwise, except as may be required by law.