EXHIBIT 99.1
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SPIRE CORPORATION NEWS RELEASE

               SPIRE'S BANDWIDTH SEMICONDUCTOR SUBSIDIARY SIGNS A
              MANUFACTURING AGREEMENT WITH PRINCIPIA LIGHTWORKS FOR
                     REAR-PROJECTION TELEVISION LASER WAFERS

Bedford, MA -- September 5, 2006 -- Spire Corporation (Nasdaq: SPIR) announced
today that its wholly owned subsidiary, Bandwidth Semiconductor, LLC
(Bandwidth), entered into a five-year manufacturing agreement in which it will
be the exclusive supplier to Principia Lightworks, Inc. (Principia), of
semiconductor wafers, enabling Principia, a Woodland Hills, California firm, to
begin high volume production of its patented device, an electron beam pumped
vertical cavity surface emitting laser (eVCSEL) as a light source for projection
display applications, including rear-projection consumer television (RPTV).

Under the terms of this agreement, Bandwidth will be producing III/V and II/VI
wafers for Principia with full production expected to start in mid 2007. During
the first three years of the agreement, Bandwidth anticipates revenues will be
in excess of $16 million, which includes revenue from the production of wafers
and recognition of certain nonrecurring engineering and facility access
payments.

Bandwidth will begin the scale-up of its existing metal organic chemical vapor
deposition (MOCVD) and related processing facilities to satisfy Principia's
requirements. Principia has made an up-front payment for nonrecurring
engineering and facility access costs and, in addition will make monthly
facility availability payments throughout the term of the agreement. Although
the Company will be committing capital resources to complete the scale-up, it
anticipates the up-front payment plus the monthly payments will be sufficient to
meet its capital requirements under the agreement, and providing the parties
meet their respective obligations over the term of the Agreement, no net outlay
of capital will be needed.

Principia Lightworks, Inc., is a developer of cutting-edge laser television
technologies. Mr. Don Klein, Executive Vice President/Business Development for
Principia, said, "After evaluating a number of potential suppliers we chose
Bandwidth because of their broad range of MOCVD and compound semiconductor
device experience. Once in production, Principia will offer the projection
display market the first truly high powered, low cost, red, green, and blue
laser light source. The agreement with Bandwidth will allow us to meet the high
volume demand from RPTV manufacturers."

Mr. Edward D. Gagnon, General Manager of Bandwidth Semiconductor, LLC, said,
"This is a big opportunity for us. We have invested heavily in bringing
Bandwidth to this level of expertise needed to satisfy Principia's requirements.
Our scale-up will meet Principia's production demands, as well as allow us to
continue to satisfy our growing customer base."

Bandwidth Semiconductor, LLC
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Bandwidth Semiconductor is a compound semiconductor foundry, specializing in
wafer epitaxy, thick and thin film products, and device fabrication for the
defense, biomedical, telecommunications and consumer products markets.

Spire Corporation
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Spire Corporation is a diversified technology company providing innovative solar
energy manufacturing equipment, biomedical devices and optoelectronic
components, all based upon a common technology platform. For more information
visit www.spirecorp.com.

Contact:  Spire Corporation
          Christian Dufresne, CFO and Treasurer
          Tel. 781-275-6000

Certain matters described in this news release may be forward-looking statements
subject to risks and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the risk of dependence on
market growth, competition and dependence on government agencies and other third
parties for funding contract research and services, as well as other factors
described in the Company's Form 10-KSB filed with the Securities and Exchange
Commission.