On March 18, 2014, the Board of Directors of STR Holdings, Inc. elected Bryant R. Riley to fill the vacancy on its Board resulting from the recent resignation by Susan C. Schnabel. Mr. Riley controls approximately 12.6% of the shares outstanding as of March 14, 2014. Mr. Riley has agreed to serve on the Board until the next annual meeting of company stockholders scheduled for May 2014 (the 2014 Annual Meeting) without remuneration.

There are (i) no arrangements or understandings between Mr. Riley and any other person pursuant to which Mr. Riley was elected to the board, and (ii) no transactions between Mr. Riley and the company that would require disclosure under Item 404(a) of Regulation S-K. On March 18, 2014, the Board approved the reduction of the size of its Board from eight members to six members effective as of the 2014 Annual Meeting. In addition, each of Scott S. Brown and Dominick J. Schiano informed the company that he decided not to stand for re-election to the board at the 2014 Annual Meeting. The decision by each of Messrs.

Brown and Schiano to not stand for re-election did not involve a disagreement with the company on any matters relating to the company's operations, policies or practices. Messrs. Brown and Schiano will cease to be members of the Board following the election of directors at the 2014 annual meeting.