Daqo New Energy Raises Guidance for the Fourth Quarter 2010 and Announces Plan to Build New Polysilicon Facility

Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading polysilicon manufacturer based in China, today announced revised guidance for its fourth quarter ended December 31, 2010. Based on the customer orders and product deliveries, the Company now estimates its fourth quarter shipments of polysilicon to be between 930 to 950 metric tons, or MT, above the high-end of its previous guidance of 825 MT to 850 MT given on November 16, 2010. The Company also shipped approximately 3 to 4 megawatts, or MW, of photovoltaic modules, versus its previous guidance of 4 to 5 MW. Primarily as a result of the increased shipments, total revenues for the fourth quarter 2010 are currently estimated to range between US$75 to US$76 million, also above the high end of its previous range of US$65 to US$69 million.

Daqo New Energy also announced that it plans to build its Phase 2 polysilicon production facility in Shihezi Economic Development Area in Xinjiang autonomous region, China. This new production facility is expected to commence production in the third quarter of 2012 and to be fully ramped up by the end of 2012.

"We are happy to raise the fourth quarter guidance due to better than expected customer demand and pricing environment. Furthermore, we are pleased to report that we have made encouraging progress in pursuing our polysilicon production capacity expansion strategy. Our periodical maintenance and capacity enhancement of our Phase 1 polysilicon manufacturing facility undertaken in December 2010 had been completed on schedule, and we have selected the location for our Phase 2 polysilicon manufacturing facility," said Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy. "The successful completion of the Phase 1 capacity enhancement project has increased our total production capacity to 4,300 MT in 2011, which will help us to better serve our customers in the future.”

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) is a leading polysilicon manufacturer based in China that aims to become a vertically integrated photovoltaic product manufacturer. Daqo New Energy primarily manufactures and sells high-quality polysilicon to photovoltaic product manufacturers. It also manufactures and sells photovoltaic wafers and modules. For more information about Daqo New Energy, please visit www.dqsolar.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, the outlook for the fourth quarter of 2010 and quotations from management in this announcement, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral for-ward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; our ability to significantly expand our polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; and our ability to successfully implement our vertical integration strategy. Further information regarding these and other risks is included in the reports or documents we filed with, or furnished to, the Securities and Exchange Commission. Daqo New Energy does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Daqo New Energy undertakes no duty to update such information, except as required under applicable law.