euro adhoc: Solar-Fabrik AG / Mergers - Acquisitions - Takeovers / Solar-Fabrik AG adds wafer processing and recovery to its value chain Expansion from a manufacturer of solar power modules to an inte

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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29.05.2006

Effective today, Solar-Fabrik AG (ISIN: DE0006614712) has signed a
Letter of Intent ("LOI") for a holding in Poseidon Chemicals
(hereinafter: Poseidon) of Chennai, India. Once the Sale and Purchase
Agreement has been signed, Solar-Fabrik AG will hold 80 % of the
shares in Poseidon via its subsidiary company Solar-Fabrik Services
Pte Ltd. of Singapore. Poseidon is a renowned specialist in the field
of wafer recovery and processing. With this takeover, Solar-Fabrik AG
covers all of the links in the solar value chain. The envisioned
evolution from a German manufacturer of solar modules to an
international, integrated solar corporation is thus complete.

Solar-Fabrik purchases recyclable wafers from the semiconductor
industry via its subsidiary Global Expertise Wafer Division Ltd.
These wafers first have to be chemically and mechanically prepared
for subsequent further processing into solar cells. Poseidon has
special technical expertise in the field of wafer recovery; for
example, the company is not only a specialist in the processing and
cutting of wafers, but also in the field of wafer cleaning - which is
especially important for the procurement market. There is no
difference in the quality of the recovered wafers and original solar
wafers. Now, Solar Energy Power Pte Ltd. of Singapore will be further
processing the wafers that Poseidon recovers. By 2007, Solar-Fabrik
will hold a majority of the shares in SEP (see the ad-hoc press
release of May 12, 2006). By taking over Poseidon, Solar-Fabrik has
closed the gap between wafers and solar cells in its value chain.

Some 3.0 million euros was agreed as the purchase price for 80% of
the shares of Poseidon. Once the purchase agreement has been signed,
the current shareholders will hold 20% of the shares and remain in
the company's management.

This new holding offers Solar-Fabrik AG a number of benefits: margins
at the level of wafers and cells are much higher than for modules,
which will improve the Group's EBIT margin considerably. The more
efficient recovery process will allow the efficiency of the cells
made out of these wafers to increase significantly. If not used in
the production of modules at Solar-Fabrik AG, these wafers and cells
will be sold at a good margin to third parties. This takeover will
already contribute approximately a seven-figure sum to Solar-Fabrik
AG's profit in 2007.

By acquiring Poseidon, Solar-Fabrik AG strengthens its market
leadership in the field of recyclable wafers from the semiconductor
industry. Solar-Fabrik AG has reached its consistently pursued
strategic goal of covering all stages in the value chain of solar
energy supply and is now completely repositioned on the market: •
Profitability will improve over the long-term thanks to these
acquisitions. • Direct access at all stages in the value chain will
provide maximum supply security. • Planning security will improve
considerably. • Horizontal and vertical diversification will reduce
current dependencies. • Internationality will facilitate access to
export markets, which are becoming more important. • The Group's
strategic position has improved decisively.

end of announcement euro adhoc 29.05.2006 10:24:43
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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: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade