euro adhoc: Solar-Fabrik AG / quarterly or semiannual financial statement / Solar-Fabrik AG announces sales and net income all time high

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6-month report

27.07.2007

Solar-Fabrik AG (ISIN: DE0006614712) concluded the first six months
of 2007 with EUR 2,130 thousand earnings after tax (net
result)(previous year EUR 1,670 thousand). Group sales in the first
six months of 2007 were up 71% compared with the same period of the
previous year, to EUR 51,335 thousand (previous year EUR 29,973
thousand). Solar-Fabrik is expecting a further sales increase from
EUR 72.7 million to more than EUR 130 million for the current
business year due to the continued integration of all activities
along the value-added chain.

In the Wafers Division, Solar-Fabrik generated around EUR 29,450
thousand in sales in the first six months of 2007, around EUR 20,066
thousand of which were external sales. Sales for this segment thus
increased by EUR 18,398 thousand over the first six months of the
previous year. This corresponds to a 166 % growth rate. The segment
result (= segment sales - segment expenses - depreciation) was EUR
3,751 thousand (same period of previous year: EUR 2,155 thousand).
The expansion of activities of the Global Expertise Wafer Division
Ltd. (GEWD Ltd.) in the areas of silicon and wafers is to be
continued. An additional representative office has been opened in
Shanghai (China) in order to benefit from the booming Chinese
photovoltaic market. Through its daughter company GEWD Ltd.
Solar-Fabrik signed a silicon supply contract with Hoku Materials,
Inc. which has strategic importance. The company views securing the
supply of polysilicon a central element of reaching Solar-Fabrik´s
primary objective: global growth while ensuring capacity utilization
across the entire value-added chain.

In the Solar Power Systems Division, Solar-Fabrik has adjusted its
sales strategy to increasingly dealing with large clients. In the
reporting period, sales in this segment increased by more than 15 %,
from EUR 27,047 thousand in the first six months of 2006 to EUR
31,255 thousand in the first six months of this year. The large
customer segment is more price-sensitive, which, as expected, has had
a negative effect on the gross margin. For the first half year of
2007, group EBIT reached EUR 1,470 thousand (same period of previous
year EUR 1,677 thousand). The overall result for the segment was EUR
-2,323 thousand (previous year: EUR -478 thousand). Thereof, EUR -787
thousand are associated with Q2 2007, and EUR -1,536 thousand with Q1
2007. Comparing the segment result of these two quarters, the
increased utilization of capacity caused the segment losses almost to
be halved in Q2 2007. In spite of the price-sensitivity, the large
client segment offers advantages which Solar-Fabrik considers key to
the company's future development. Because of the gross margins
achievable, the production of solar modules is a volume-driven
business area. Based on the current business plan, Solar-Fabrik will
be in a position in 2008 to sell considerably greater quantities than
originally expected by servicing the large client segment. This
segment can also generate business in the traditionally weak first
quarter of the business year, leading to a balancing out of the
quarterly results and advancing the planning reliability. The company
expects that gross return will have improved by the end of the year,
as sales prices will have been fixed based on order quantities, and
purchasing prices are expected to continue to fall in the coming
months. The positive order situation and the resulting upwards
adjustment of results planning for subsequent years for this segment
has led the company to clearly increase the capitalized deferred tax
assets, a fact which is reflected in EUR 1,058 thousand tax income
(previous year: EUR 30 thousand) for the first half of 2007. The
improved results expectations should allow Solar-Fabrik to utilize
tax loss carry forwards sooner and more extensively.

The company expects for the upcoming months and the future a
significant increase in sales and net result. This expectation is
justified by the consequent realization of the following issues:

• 100 % utilization of capacity (causing an decrease in fixed costs)
• Further development of capacities along the value added chain
• Further development of activities with a higher gross margin within the
value chain
• Further efficiency improvements in the production
• Improved supply conditions caused by increasing volumes
• High reliability of raw material supply
• Diversification of the customer basis in Germany and abroad

end of announcement euro adhoc 27.07.2007 07:30:52
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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