- Consolidated net profit of € 6.2 million for the past fiscal year with EBIT of € 11.3 million and sales to the amount of € 32.0 million

- Target deviations due to the postponement of stakes sales will be shown as additional extraordinary effect in the current fiscal year

- Board of Directors confirms 2008/2009 planning: EBIT of € 30 million and sales to the amount of € 150 million plus extraordinary effect from the postponed sale of stakes in fiscal year 2007/2008 into the current fiscal year amounting to EBIT of € 12 million and sales of € 48 million

Erlangen, 18 March 2009 Today Solar Millennium AG (ISIN DE0007218406) presented its audited consolidated financial statements for the 2007/2008 fiscal year at its annual press conference regarding the financial statement in Munich and confirmed the preliminary figures that had been published at the end of January. In the past fiscal year, the Company had generated consolidated sales of € 32.0 million pursuant to IFRS as of 31 October 2008, thus slightly exceeding the previous year's level of € 31.1 million. Net profit amounted to € 6.2 million. As a result of the postponed sale of stakes, net profit nearly halved compared to the previous year (€ 11.9 million) and thus missed the targeted profit of € 18 million and sales of € 80 million. The deviation from the targeted result due to the postponed sale of stakes in power plant and project companies will be shown separately in the ongoing 2008/2009 reporting period. The Board of Directors confirmed its plans for the current 2008/2009 fiscal year with an EBIT of € 30 million plus an additional effect of about € 12 million and sales amounting to € 150 million plus an additional effect of approx. € 48 million at Group level.

Accordingly, the operating result (EBIT) of € 11.3 million in the past fiscal year fell short of the previous year's EBIT (€ 16.4 million) as well. Earnings per share came out at € 0.53 (€ 1.20 in 2006/2007). As of the balance sheet date (31 October) both liquid funds and the equity ratio increased significantly from € 87.3 million in the previous year to € 125.1 million and from 27 % to 38 %, respectively. The number of employees rose by more than 70 % year-on-year to about 150 full time employees as of the balance sheet date.

Solar Millennium generated the majority of revenues in the operating business fields Project Development and Technology, which is mainly attributable to orders for the solar-thermal power plant projects Andasol 1, 2 and 3 in Spain as well as the solar field of the Egyptian hybrid power plant in Kuraymat. In addition, the Company had planned to sell stakes in the Andasol power plant and project companies in the south of Spain. However, this could not be realized by the end of the reporting period due to outstanding Board approvals among other reasons. Therefore the outstanding sale of stakes was postponed into the ongoing reporting period. The sale of stakes in power plant projects that were developed by Solar Millennium is an essential part of the business model and significantly contributed to reaching the targeted sales and net profits in earlier years. In the ongoing fiscal year, they are likewise part of the Company's plans.

Thus, Solar Millennium now aims to acquire project financing independent of banks through direct investment by major investors as additional option besides the previous choice of bank financing and the possibility to sell power plant stakes to funds that was prepared last year. For the projects Andasol 3 and Ibersol, successful negotiations with major investors have long been underway. The Board of Directors is expecting to conclude a deal for the Andasol 3 project within the next few weeks. The solar-thermal power plant that is basically identical to its sister projects Andasol 1 and 2 in construction, is to be completed by the beginning of 2011. The entry of a major investor into the Ibersol project as well as the subsequent start of construction is expected to take place by mid 2009. In addition, the sale of stakes in the Andasol 1 and 2 solar-thermal power plants that was postponed last year, is to be realized now and will take place within the next few weeks.

Furthermore, the Board of Directors is planning income from several orders for engineering and plant construction at the subsidiaries Flagsol and MAN Solar Millennium. This applies for the solar field of the Kuraymat power plant in Egypt, the Andasol projects, particularly the continuation of construction at Andasol 3 and the construction start of Ibersol in Spain as well as the construction of a third party project. Last, but not least, the early entry of investors into one or two projects in the US is to be expected.

Solar Millennium's CEO, Christian Beltle, is anticipating a multitude of positive news in the next few weeks: "Based on the advanced stage of negotiations, I am expecting the conclusion of several agreements. As such, we will catch up on the postponed sale of power plant stakes from the last year in the near future. For Andasol 3 as well, where we successfully adjusted project financing to the change in financial market conditions, I expect a finalization before long. Then we can start with Ibersol, our fourth power plant project in Spain, in summer. The demand for solar-thermal power plants is increasing worldwide. The next major market lies in the US. As a result of Barack Obama's infrastructure stimulus, we will be able to speed up the realization of power plants from our project pipeline that is filled to the brim. "

Thomas Mayer, CFO of Solar Millennium, adds: "We are strictly pursuing our growth process. We have different options for financing our solar power plants with investment volumes of several hundred million up to one billion euros. Apart from project financing with the support of banks, direct equity investment on the part of major investors as well as the placement of funds are possible options. Moreover, up to 30 % of solar power plants can be financed with US federal funds, if the start of construction takes place in 2010. In order to cover the temporarily increased capital requirements due to project development and financing, we will continue to issue corporate bonds." With regard to the postponed sale of stakes in power plant projects, Mayer explains: "We will show the missing profit and revenues of the past fiscal year as additional effect on top of the current year's targets in order to make it transparent that a business event was shifted into the next reporting period."

The complete Annual Report with the Consolidated Financial Statements for 2007/2008 is available for download here.

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with its main emphasis on solar-thermal power plants. Together with its subsidiaries, the Company specializes in parabolic trough power plants, a proven and reliable technology with which the Group has adopted a leading position worldwide. Solar Millennium covers all important business sectors along the value chain for solar-thermal power plants - from project development and technology to turn-key construction as well as plant operation and investments in power plants. In Spain, Solar Millennium developed Europe's first parabolic trough power plants and realized them with its partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts. The current regional focus is on Spain, the US, the Middle East and North Africa. Furthermore, the Company has the aim of achieving market readiness for the so-called Blue Tower technology for the generation of product gas that is rich in hydrogen through the reformation of regenerative residual materials, and also for solar chimney power plants in the long run.

About solar-thermal power plant technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a parabolic trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.

You can download the press release here.