EANS-News: Sunways AG / Possible return to profit zone from 2014 onwards

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Annual & Special Corporate Meetings/Company Information/Earnings
Forecast

Subtitle: - Structural problems in the industry affect sales revenues
and earnings in 2012 - Sunways is to become a Technology Excellence
Center and Inverter Competence Center for the LDK Group - Market
entries in Canada, the USA and China planned for the next few years

Konstanz (euro adhoc) - Konstanz/Germany, 30 August 2012 - The
Sunways Group (SWW:GR, SWWG.DE, ISIN DE0007332207) believes it will
again be able to generate operating profits from 2014 onwards. This
improvement of the financial situation is to be achieved mainly
through sales and cost synergies resulting from the intensified
cooperation with the Chinese LDK Solar Group. Following the public
takeover offer, LDK Solar Germany Holding GmbH is the new majority
shareholder of the Konstanz-based photovoltaics manufacturer. "At
present, we have to cope with individual but mostly also with
industry-related structural problems. The pace of consolidation in
the photovoltaics industry has accelerated significantly", said
Michael Wilhelm, CEO of Sunways, at the company's general meeting
held in Singen today. Wilhelm explained the reasons for the major
losses incurred in the fiscal 2011 but also emphasized: "Due to the
partnership with the LDK Solar Group, the prospects of the technology
specialist Sunways are much better than they would be under a
stand-alone strategy. In terms of operating profit, we plan to report
black figures again in 2014."

In the area of solar modules, Sunways intends to mainly build on its
strong brand and service quality in the future cooperation with LDK
Solar - to the advantage of both parties who so far serve different
customer segments. With respect to solar cells, Sunways is to play a
major role as a Technology Excellence Center within the LDK Solar
Group. Basis for this will be the photovoltaics specialist's
extensive know-how relating to the development of high-efficiency
silicon solar cells and a widespread network to internationally
leading academic and research institutions in Germany, in particular
in the Freiburg/Konstanz region. Finally, Sunways is to become
Competence Center for solar inverters within the LDK Solar Group.
Wilhelm, Chairman of the Management Board (CEO), sees a strong
potential in this context. A joint market entry with LDK Solar is
planned in Canada, the USA as well as in China. "Five years from
now, Sunways and LDK Solar plan to be among the largest three
manufacturers of solar inverters worldwide", predicted Wilhelm.

The systematic development of new growth markets plays a key role for
the Sunways Group. "In the future, volume growth in photovoltaics
will increasingly be generated abroad, while holistic energy
generation, storage and management systems will become more important
in Germany", he emphasized. Medium-term growth expectations mainly
concentrate on the Chinese market. "The Chinese market can only be
conquered together with an experienced local partner - whom we have
found in LDK Solar", said Wilhelm.

The past year was extremely difficult for the entire German solar
industry. "This is also reflected in our financial statements",
explained Wilhelm. Consolidated sales revenues of Sunways AG
decreased by about 50 percent to EUR 116.2 million. This was due to
the declining demand in the company's former core markets as well as
to the dramatic deterioration of prices for components for
photovoltaic systems, in particular solar modules. There was a
negative operating result (EBIT) of EUR 66.1 million (2010: EUR +15.0
million).

Major non-recurrent and extraordinary expenses contributed to the
losses incurred in the fiscal 2011: provisions for impending losses
under wafer purchase contracts and various agreements with
manufacturers relating to inverters, provisions for warranties and
fixed asset impairments. In all, the operating result of Sunways AG
for the fourth quarter of 2011 was affected by expenses of about EUR
44.0 million of which approx. EUR 34.0 million related to
non-recurrent expenses. Thus the consolidated net loss for the full
fiscal year amounted to EUR 62.1 million (2010: consolidated net
income of EUR 9.3 million). A positive aspect was that the export
quota of Sunways had grown in the past year. A total of 45.4 percent
of consolidated sales were generated abroad (2010: 29.2 percent).

The Management Board's prognosis for the current fiscal year is
cautious. "In the fiscal year 2012, we want to stabilize the
development of our sales volumes and revenues and reduce our losses
as compared to 2011", said Wilhelm. In view of the steadily changing
political and economic framework conditions, the Management Board
believes a more precise prognosis cannot be given at present.

At the Annual General Meeting, the shareholders approved all motions
on the agenda. The following resolutions were passed:

- The creation of new authorized capital and possible exclusion of
the pre-emptive rights of shareholders as well as the amendment to
paragraph 5, subparagraph 2 of the articles of incorporation were
resolved. - Bing Zhu, Chief Strategy Officer of the LDK Solar Group,
was appointed to the three-member Supervisory Board as representative
of the majority shareholder. - The actions of the Management Board
and Supervisory Board in the past fiscal year were formally approved
and the audit company PricewaterhouseCoopers was again appointed as
auditor.

This press release is also available on hhtp://www.sunways.eu/en or
http://www.presseportal.de/pm/57666/sunways_ag.

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 2011, Sunways AG with about 330 employees realised
sales of around EUR 115 million. The shares of Sunways AG are listed
at the Frankfurt Stock Exchange (SWW:GR, SWWG.DE, ISIN DE0007332207).
For further information, please visit www.sunways.eu/en.

About LDK Solar LDK Solar Co., Ltd. (NYSE: LDK) is a leading
vertically integrated manufacturer of photovoltaic products. LDK
Solar manufactures e.g. polysilicon, mono and multicrystalline
wafers, solar cells, and solar modules. LDK Solar's headquarters and
principal manufacturing facilities are located in Hi-Tech Industrial
Park, Xinyu City, Jiangxi Province in the People's Republic of China.
For more information about LDK Solar and its products, please visit
www.ldksolar.com.

Further inquiry note:
Dr. Harald F. Schäfer
Head Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415
E-Mail: communications@sunways.de

end of announcement euro adhoc
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company: Sunways AG
Macairestr. 3 - 5
D-78467 Konstanz
phone: +49 (0)7531 99677 0
FAX: +49 (0)7531 99677 10
mail: info@sunways.de
WWW: http://www.sunways.eu/de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English