Clear Skies Solar Signs $8 Million Solar Energy Deal in India

Business Wire, Oct 21, 2008

Two Megawatt Solar Project Brings Company's India-based Projects to $28 Million

NEW YORK -- Clear Skies Solar, Inc. (OTCBB:CSKH) today announced an $8 million USD agreement with Prayag Green Solar Power Private Limited to develop and construct a two megawatt solar power project in Chitrakoot, Uttar Pradesh, India.

By closing this agreement, Clear Skies Solar has demonstrated the company's ability to overcome some of the challenges associated with international projects by solidifying its international financing structure. This has opened a pathway for the company to execute other contracts in the region, including a previously announced $20 million project to design and construct a multi-megawatt solar power system in Uttar Pradesh.

"To ensure our continued growth, we developed an aggressive international expansion plan earlier this year that was designed to take advantage of markets with a solid feed-in tariff structure in order to obtain support for renewable energy from governments in both Europe and Asia," said Ezra Green, Chairman and CEO of Clear Skies Solar. "This strategy is already paying off; in addition to closing agreements for two projects in India, Clear Skies Solar has also recently announced a contract to design and construct a 150kW solar project in Greece - and this is just the first of several projects to be announced in the coming weeks."

Recognizing the role that solar power will play in the global search for cleaner and more abundant energy sources, Clear Skies Solar has built the infrastructure necessary to support this type of international expansion and to develop large-scale projects at an accelerated pace in order to support global power needs. Our world class management team has been expanded to meet the extreme growth we are experiencing.

"International projects have become increasingly important to our growth strategy at Clear Skies Solar," continued Green. "We have structured our international business model in a manner that enables us to move quickly through the various international channels, allowing us to rapidly execute on our contracts. In fact, we expect to begin the engineering phase of this project by the end of the fourth quarter of 2008."

Clear Skies Solar will provide the technology, engineering and construction services needed to create the PV project and will also be prepared to provide the operation and maintenance services needed.

About Clear Skies Solar

Clear Skies Solar, Inc. (CSS) through its wholly owned subsidiary, provides full-service renewable energy solutions to commercial, industrial, and agricultural clients across the country. CSS was incorporated in 2003 and launched formal operations in 2005. During that time period, CSS developed its proprietary systems, obtained licenses and certifications, and acquired technologies that could maximize the impact of its construction expertise on the renewable energy sector. CSS has become one of the premier solar electric installation companies in the country. For more information about CSS, visit www.ClearSkiesSolar.com.

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Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission.