EANS-News: Sunways AG / Sunways AG raises 2010 sales prognosis due to continuously strong third quarter business

- Sales increased to € 58.3 million (+48.0 %); the operating result
(EBIT) amounted to € 4.0 million
- Historically best quarter for
Sunways solar inverters
- Consolidated sales of € 215-225 million
and continuously high profitability expected for 2010

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Earnings Forecast/quarterly report/9-month report

Subtitle: - Sales increased to € 58.3 million (+48.0 %); the
operating result (EBIT) amounted to € 4.0 million - Historically
best quarter for Sunways solar inverters - Consolidated sales of €
215-225 million and continuously high profitability expected for 2010

Konstanz (euro adhoc) - Konstanz, 12 November 2010 - In the third
quarter, Sunways AG (FWB: SWW; ISIN DE0007332207) continued its
profitable growth in the fiscal year 2010. Based on dynamic demand
for the Company´s products, Sunways AG´s sales increased by 48 %
against the third quarter 2009 to EUR 58.3 million (Q3/2009: EUR 39.4
million). Business activities in the Company´s European markets
outside Germany were expanded significantly. All three product
segments of Sunways AG (solar cells, solar modules, and solar
inverters) contributed to this substantial growth in sales revenues
and sales volume. Especially for Sunways solar inverters, the three
months from July to September 2010 were the best quarter so far. The
Group´s operating result (EBIT) rose markedly in the third quarter to
EUR 4.0 million (Q3/2009: EUR -0.6 million). In the first nine months
of the fiscal year 2010, the consolidated sales of Sunways AG rose by
36.3 % to EUR 167.2 million (9M/2009: EUR 122.7 million). Based on
the good results of the first two quarters, EBIT reached an amount of
EUR 13.7 million and thus exceeded the 2009 comparative figure by EUR
19.8 million (9M/2009: EUR -6.1 million).

International business increasingly more important The international
business of Sunways AG in the third quarter 2010 recorded a very
successful development: with a sales contribution of EUR 16.9
million, the international business accounted for 29 % of total sales
and thus increased sixfold compared to the prior year figure
(Q3/2009: 2,8 million). This also corresponded to an increase by
another 30 % against the good second quarter of the current year.
Major international sales contributions of Sunways AG were generated
in Italy and Spain. "The steady expansion of our European business
activities outside Germany was apparent throughout the first nine
months of 2010 as volumes grew steadily. We intend to consistently
keep up this development to become more independent of the terms and
conditions of subsidy programs in the individual countries,"
commented Michael Wilhelm, Chairman of the Management Board of
Sunways AG. Compared to the first nine months of the prior year,
international sales tripled to EUR 36.9 million (9M/2090: EUR 11.5
million). With higher consolidated sales posted in 2010, the
percentage proportion of business in the European markets outside
Germany grew from 8.4 % to 18,5 %. Important sales markets for
Sunways products in addition to Italy and Spain were Greece, France,
Liechtenstein, Austria and the Czech Republic.

Solar cells: still the most important sales driver In the third
quarter 2010, sales in the solar cell segment rose by 51 % to EUR
27.9 million (Q3/2009: EUR 18,5 million). This amount includes
intracompany sales generated with the solar module segment in the
amount of EUR 6.1 million (Q3/2009: EUR 0.0 million). Sales volumes
doubled to 24.5 MWp (Q3/2009: 11.8 MWp). As selling prices for solar
cells were lower than in the third quarter 2009 while prices of raw
materials had increased, the segment EBIT in the third quarter 2010
amounted to EUR 2.1 million (Q3/2009: EUR 2.5 million). In the first
nine months of the current year, solar cell sales amounted to EUR
80.8 million and thus exceeded the corresponding figure for the
period from January through September 2009 by just under 10 %
(9M/2009: EUR 73.7 million). The sales volume grew by 63 % to 73.0
MWp (9M/2009: 44.7 MWp). Thanks to the high operating result in the
second quarter 2010, when a large contract manufacturing order was
settled, the product segment´s EBIT in the first nine months of 2010
grew markedly to reach a new record level of EUR 9.1 million
(9M/2009: EUR 2.5 million).

Solar modules: focus on doubling sales volumes In the solar module
segment, sales in the third quarter 2010 amounted to EUR 19.6 million
and thus exceeded sales in the prior year quarter by 19 % (Q3/2009:
EUR 16.4 million). The module sales volume rose markedly to 11.3 MWp
(Q3/2009: 7.8 MWp). Despite the sales and sales volume growth in the
product segment, EBIT only improved slightly to EUR -1.5 million
(Q3/2009: EUR -2,4 million). This was mainly due to higher production
costs resulting from an increase in transfer prices for solar cells
and in particular to the still very high prices charged by our German
module manufacturers for stringing solar cells. In the first three
quarters 2010, solar module sales amounted to EUR 68.0 million and
increased by 74 % against the prior year figure (9M/2009: EUR 39.0
million). Although the EBIT generated in the same period of EUR 0.0
million made no positive contribution to consolidated earnings, this
figure constitutes a significant improvement against the prior year
(9M/2009: EUR -5.1 million). The module sales volume in the first
nine months of the current year rose by 125 % to 37.4 MWp (9M/2009:
16.6 MWp). Due to further improved delivery capacities, e.g. under
the new module production contract with LDK Solar, Sunways AG is
confident that the targeted duplication of sales volumes to approx.
50 MWp for the entire fiscal year 2010 will be achieved.

Solar inverters: top performance in terms of sales, sales volumes and
earnings At EUR 16.9 million, sales of the solar inverter segment in
the third quarter 2010 increased to more than 3.5 times the amount
reported in the prior year (Q3/2009: EUR 4.5 million). The sales
volume grew from 18.4 MWp in the third quarter 2009 to 68.0 MWp in
the past quarter. Sunways AG was able to largely satisfy the strong
demand for solar inverters. In this context, a larger percentage
portion of new models and increasingly also devices with higher
capacities were sold. With an EBIT of EUR 3.4 million (Q3/2009: EUR
-0.7 million), the past quarter was the most successful three-month
period so far in the product segment´s history. Accumulated inverter
sales in the first nine months of 2010 amounted to EUR 35.8 million
(9M/2009: EUR 10.0 million) - a sales growth by 258 %. Sales volumes
increased from 39.9 MWp in the first nine months of 2009 to 145.0 MWp
in the corresponding 2010 period. EBIT for the first nine months of
the current year amounted to EUR 4.6 million (9M/2009: EUR -3.5
million).

Outlook for the entire fiscal year 2010: prognosis raised Following
two unscheduled reductions of feed-in tariffs in Germany, Sunways AG
again expects moderate pressures on the selling prices for PV system
components in the fourth quarter. Moreover, Sunways anticipates a
reduction of sales volumes against the preceding quarters of the
current year in the high-margin inverter business. In view of the
supply shortages in spring 2010, end customers placed orders that in
some cases are currently being cancelled. On the procurement side,
Sunways AG anticipates a currency and demand related increase in
prices of raw materials (in particular wafers) but also expects that
the inverter component supply situation will ease slowly and
steadily. With respect to the module business, Sunways AG is
confident that the projected duplication of the 2009 sales volume
will be achieved. Sunways recently certified LKD Solar as an
additional partner for the production of Sunways solar modules and,
consequently, expects margins to improve palpably in the medium term
due to lower stringing costs. Based on the positive business
development in the third quarter in combination with increased
volumes in the international business and the good development of the
inverter segment, Sunways AG has made an upward adjustment to its
sales prognosis for the fiscal year 2010: the Company expects
sustained Group profitability with an EBIT margin of about 6 % and an
increase in consolidated sales to EUR 215-225 million.

Financial calendar 2011
17/02/2011 - Preliminary 2010 sales figures
31/03/2011 - Report for the fiscal year 2010 (FY 2010)
12/05/2011 - Interim Report as of 31 March 2011 (Q1)
11/08/2011 - Interim Report as of 30 June 2011 (Q2)
14/11/2011 - Interim Report as of 30 November 2011 (Q3)

Q3/2010 key figures Group Sales: EUR 58.3 million (Q3/2009: EUR 39.4
million; + 48.0 %) EBITDA: EUR 5.6 million (Q3/2009: EUR 0.9 million)
Depreciation and amortization: EUR 1.6 million (Q3/2009: EUR 1.5
million) EBIT: EUR 4.0 million (Q3/2009: EUR -0.6 million)
Consolidated net income: EUR 2.7 million (Q3/2009: EUR 1.4 million)
Earnings per share: EUR 0.24 (Q3/2009: EUR 0.12) Number of employees
(30/09/2010): 333 (30/9/2009: 316) Solar cell segment Sales: EUR 27.9
million (Q3/2009: EUR 18.5 million; +50.8 %) EBIT: EUR 2.1 million
(Q3/2009: EUR 2.5 million) Solar cell sales volume: 24.5 MWp
(Q3/2009: 11.8 MWp) Solar module segment Sales: EUR 19.6 million
(Q3/2009: EUR 16.4 million; +19.5 %) EBIT: EUR -1.5 million (Q3/2009:
EUR -2.4 million) Solar module sales volume: 11.3 MWp (Q3/2009: 7.8
MWp) Solar inverter segment Sales: EUR 16.9 million (Q3/2009: EUR 4.5
million; +275.6 %) EBIT: EUR 3.4 million (Q3/2009: EUR -0.7 million)
Solar inverter sales volume: 68.0 MWp (Q3/2009: 18.4 MWp)

9M/2010 key figures Group Sales: EUR 167.2 million (9M/2009: EUR
122.7 million; +36.3 %) EBITDA: EUR 18.4 million (9M/2009: EUR -2.0
million) Depreciation and amortization: EUR 4.7 million (9M/2009: EUR
4.1 million) EBIT: EUR 13.7 million (9M/2009: EUR -6.1 million)
Consolidated net income: EUR 8.3 million (9M/2009: EUR -2.8 million)
Earnings per share: EUR 0.72 (9M/2009: EUR -0.24) Solar cell segment
Sales: EUR 80.8 million (9M/2009: EUR 73.7 million; +9.6 %) EBIT: EUR
9.1 million (9M/2009: EUR 2.5 million) Solar cell sales volume: 73.0
MWp (9M/2009: 44.7 MWp) Solar module segment Sales: EUR 68.0 million
(9M/2009: EUR 39.0 million; +74.4 %) EBIT: EUR 0.0 million (9M/2009:
EUR -5.1 million) Solar module sales volume: 37.4 MWp (9M/2009: 16.6
MWp) Solar inverter segment Sales: EUR 35.8 million (9M/2009: EUR
10.0 million; +258.0 %) EBIT: EUR 4.6 million (9M/2009: EUR -3.5
million) Solar inverter sales volume: 145.0 MWp (9M/2009: 39.9 MWp)

This press release and pictures are also available on
www.sunways.eu/en and on
http://www.presseportal.de/suche.htx?q=sunways.

Forward-looking statements This press release contains statements
relating to the future business development of Sunways AG that are
based on management assumptions and estimates made at the time of
publication. Should the assumptions underlying the prognoses fail to
be fulfilled, actual events may vary substantially from
forward-looking statements. Uncertainties include changes in the
political, legal, economic and business environment, exchange and
interest rate fluctuations as well as the behaviour of competitors
and other market participants. Sunways does not intend and is not
under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances
prevailing as of the date of publication.

About Sunways Sunways AG, Konstanz/Germany, stands for consistent use
of solar energy to secure long-term energy supply of man in an
efficient and sustainable manner. Sunways offers technological
competence, performance and highest quality - from single components
to complete solar systems.Since its foundation in 1993, Sunways AG
evolved into a technology leader in the photovoltaics industry
serving international markets. With silicon-based solar cells,
inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation.
With photovoltaic solutions tailored to customers´ needs (transparent
and coloured solar cells, building- integrated photovoltaic
installations), Sunways turns exceptional ideas into reality. Sunways
Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and
Bologna/Italy. In 2009, Sunways AG with about 320 employees realised
sales of about EUR 180 million.The shares of Sunways AG are listed at
the Frankfurt Stock Exchange (SWW, ISIN DE0007332207). For further
information, please visit www.sunways.eu/en.

end of announcement euro adhoc
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ots Originaltext: Sunways AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Harald F. Schaefer

Head of Corporate Communications & Investor Relations

Tel.: +49 (0)7531 996 77-415

E-Mail: communications@sunways.de

Branche: Alternative energy
ISIN: DE0007332207
WKN: 733220
Index: CDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
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