euro adhoc: ErSol Solar Energy AG / Strategic management decisions / ErSol AG resolves further investment to expand its production capacity; earnings forecasts raised for 2006

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05.04.2006

ErSol AG resolves further investment to expand its production
capacity; earnings forecasts raised for 2006

At its meeting today, ErSol AG's Board of Management resolved to make
further investments in the expansion of its production capacity for
solar cells, in view of continued high market demand. During the
current initial expansion phase, the investment of approximately EUR
16 million at the Arnstadt plant will see total wafer capacity of
around 45 MWp being developed by mid-2006. This corresponds to an
increase of 25 MWp. At an additional cost of approximately EUR 50
million, expansion of the company's production capacity for wafers
has also already been resolved. In tandem with these measures, the
Board of Management today resolved to develop additional capacity for
the manufacture of solar cells at both of its plants in Erfurt and
Arnstadt. The investments totalling EUR 19 million that the company
had already planned will now be followed by further investment
amounting to EUR 36 million. The Board of Management expects that
these funds will allow it to increase its existing production
capacity forecasts in the solar cells area for the end of 2007 from
110 MWp to 180 MWp. Together with its investments in thin-film module
production already announced on 30 March 2006 of more than EUR 80
million, the company therefore intends to make total investments in
excess of EUR 190 million in 2006 and 2007. By 2008, the company's
goal is to boost its total production capacity to 220 MWp, rather
than its original goal of 110 MWp.

On this basis, the Board of Management believes that the ErSol Group
can achieve sales of between EUR 120 and EUR 125 million in 2006,
though the benefits from this accelerated capacity development and
from the investments that have been brought forward are not likely to
filter through until the second half of the year. The Board of
Management also anticipates that both earnings before taxes and the
operating result for 2006 will be between EUR 25 and EUR 30 million.
Should ErSol's figures continue this very encouraging development,
the Board of Management expects that in the medium-term, it may be
able to propose the distribution of a dividend to the company's
General Meeting.

end of announcement euro adhoc 05.04.2006 08:21:02
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ots Originaltext: ErSol Solar Energy AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Sonja Teurezbacher
Investor Relations Manager
+49 (0)361 219 5130
sonja.teurezbacher@ersol.de

Branche: Alternative energy
ISIN: DE0006627532
WKN: 662753
Index: CDAX, TecDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard


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