euro adhoc: Solar-Fabrik AG / quarterly or semiannual financial statement / Solar-Fabrik AG Doubles Sales - completed capital increase and structured financing ensure the realization of the business p

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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9-month report

26.10.2007

Solar-Fabrik AG Doubles Sales - completed capital increase and
structured financing ensure the realization of the business plans

Ad-hoc Announcement, 26 October 2007

Solar-Fabrik AG (ISIN: DE0006614712) increased sales by 106% in the
first nine months of 2007 compared with the same period of 2006, to
EUR 102,860,000 (Q1-3 2006: EUR 49,816,000). In response, the
Company has raised its sales forecast for 2007 from a minimum of
EUR 130 million previously to a minimum of EUR 140 million now.
Adjusted for unrealized exchange rate losses of EUR 2,998,000,
Solar-Fabrik AG closed the first nine months of 2007 with EBIT of EUR
1,966,000 (EBIT Q1-3 2006: EUR 3,035,000). Exchange rate hedges
particularly for current currency exposures for the next fiscal
year are already accounted for in these figures. The recent share
issue generated approximately EUR 41 million for the company.
Another EUR 43 million has been borrowed in a recently
finalized structure finance package to secure business growth as
decided and planned. This assures the Company access to the
resources needed for its impending expansion, guaranteeing the
supply of raw materials to increase solar cell production in
Singapore and additions to production capacity for solar panels
and solar cells.

The first delivery tranche under a polycrystalline silicon contract
with Hoku Materials has been secured by opening a
cash-collateralized US$ 25 million letter of credit for the agreed
upon volumes and prices. A second tranche and the conditions
involved are currently the subject of talks between the parties
that are to be completed at the latest by the year-end. This opens
significant additional scope for expansion from 2009 which has not
yet been incorporated into the current business plans.

In its Wafers business segment, Solar-Fabrik generated sales of some EUR
52,055,000 in the first nine months of 2007, with external sales accounting for
some EUR 39,465,000 of this total. The Wafers segment thus increased first nine-
month sales by EUR 33,581,000 compared with 2006 (EUR 18,474,000),
corresponding to a growth rate of 182%. Segment operating income amounted for
EUR 4,204,000 (Q1-3 2006: EUR 4,502,000).

In its Solar Power Systems business segment, Solar-Fabrik altered
its sales strategy in the second quarter of 2007 to increase
its focus on major customers. Sales in this segment increased in
the reporting period by some 53% to EUR 63,254,000 (Q1-3 2006: EUR
41,362,000). The new sales strategy has brought about a dynamic
reduction in operating losses in this segment since the beginning of
the year: while the segment result in the first quarter of 2007
amounted to a loss of EUR 1,536,000 due to seasonal effects and as a
result of the initial sales strategy, the segment result for the
second quarter of 2007 improved due to the initiated sales
reorganization by EUR 749,000 compared to Q1 2007. Furthermore,
the segment result for the third quarter 2007 improved compared
to the segment result for the second quarter 2007 by EUR 561,000.
In total, the segment generated a cumulated operating loss adjusted
for special effects of EUR 2,549,000 for the first nine months of
2007. Since the third quarter of 2007, the segment has operated at
break-even point. Above the level of sales it has attained the
segment will generate positive operating income in future, and
further planned sales growth in the Solar Power Systems segment
will mean even higher growth in operating income.

The operational turnaround has also been achieved in the third
quarter in the Solar Cells segment. After initial losses of EUR
611,000 in the first half of 2007, the third quarter brought a
segmental operating income of EUR 140,000.

The Wafer Processing segment, in which almost all sales are
accounted for by intra-group business, generated segmental
operating income of EUR 701,000 in the first nine months of 2007.
The extension of the Wafer segment will further be accelerated. In
this regard, the production capacity of the Wafer Processing segment
in India will be doubled by the current construction of a second
plant.

Solar-Fabrik plans (and to a large extent already has contracts) to
sell up to 70 MWp of solar panels in its Solar Power Systems
segment in the 2008 business year, and expects that it will provide
a correspondingly large quantity and price-induced positive
contribution to operating income. The Group's minimum sales
forecast for 2008 is EUR 200 million. The Company forecasts
significant rises in sales and earnings; this estimation is based on
sustained high level of capacity utilization, additional
efficiency gains at all production locations, and improved
procurement terms in line with increasing volumes.

end of announcement euro adhoc 26.10.2007 07:09:38
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ots Originaltext: Solar-Fabrik AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Martin Schlenk
Tel. +49(0)761 4000 207
E-Mail: m.schlenk@solar-fabrik.de

Branche: Alternative energy
ISIN: DE0006614712
WKN: 661471
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse München / free trade


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