ersol Solar Energy AG Presents First Quarter Results

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ersol Solar Energy AG generated consolidated revenue of EUR 52.4 million in the first quarter of 2008, thus almost doubling its revenue compared with last year's period (Q1 2007: EUR 26.1 million). The German company achieved this growth through the successful start-up of the newly created production capacities and through a number of long-term supply agreements for solar cells, which are bearing their first fruits in 2008. In addition, there has been a shift in the distribution of sales to foreign countries. The export ratio was 79.9 percent, representing an increase of 25.6 percentage points compared with the previous year (Q1 2007: 54.3 percent).

ersol's operating result (EBIT) increased significantly compared with the first quarter of 2007. In total, ersol generated EUR 7.7 million in the reporting period, corresponding to an increase of 79.5 percent year-on-year (Q1 2007: EUR 4.3 million). The EBIT margin declined slightly compared with Q1 2007 (16.5 percent) to 14.8 percent, and was curbed by the negative operating result of the Modules segment. Thin film production began here, as planned, in the first quarter, and generated its first revenues. The ersol Group assumes, however, that the EBIT margin will improve in the coming quarters: firstly, due to an increase in material supplies, which will lead to greater capacity utilisation in the Wafers and Solar Cells segments, and, secondly, due to the increased revenues in thin film activities.

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Earnings after tax amounted to EUR 3.2 million in the first three months and were thus up by 115.9 percent compared to last year's period (Q1 2007: EUR 1.5 million). "Based on revenue, the operating result and earnings after tax, ersol thus achieved one of the best quarterly results in the Company's history," said a delighted Ekhard von Dewitz, CFO of ersol Solar Energy AG, speaking about the business figures for the first three months of this year.

In the second quarter, and over the remaining course of the current financial year, capacities in the Wafers and Solar Cells segments will be expanded further. ersol Wafers is aiming to achieve a nominal capacity of 180 MWp by the end of 2008; a capacity of 220 MWp is planned for crystalline solar cell production.

There has been no change in the overall forecast for the year since the end of the first quarter. "Even more than in previous years, the first three months of 2008 also give no indication of development to come in the quarters thereafter. Revenue and earnings will gradually increase over the course of the year due to increasing material supplies," said ersol's CFO of further business development. "We are anticipating significantly better profitability in the third and fourth quarters and are expecting to reach our target EBIT margin of over 20 percent for the first time," von Dewitz concluded.

Currently, the Company is still forecasting revenue of between EUR 300 and EUR 320 million and an operating profit of between EUR 70 and EUR 80 million for 2008. This planning certainty is provided by the fact that ersol is completely sold out for this financial year.

Source: ersol Solar Energy AG