EANS-News: Phoenix Solar focuses on international operations and new business models Financing extended until end of March 2015 / Change in the position of CEO

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Strategic management decisions

Sulzemoos (euro adhoc) - Phoenix Solar focuses on international
operations and new business models

Financing extended until end of March 2015 / Change in the position
of CEO

Sulzemoos 11 February 2013 / Phoenix Solar AG (ISIN DE000A0BVU93), an
internationally leading photovoltaic system integrator listed on the
Prime Standard of the Frankfurt Stock Exchange, has decided to part
company with a number of loss making operations due to the fact that
the market environment raises severe doubts about their recovery in
the near term.

Subsequently, Phoenix Solar will lay enhanced focus on the strongly
growing regions of Asia and the USA where its regional subsidiaries
have successfully established themselves in their respective markets.
The North American and Asian operations have ramped up the capacities
and competencies necessary to sustainably manage, develop and expand
their businesses in an operationally independent manner. Our
subsidiary in the US, established in 2010 grew its sales by a factor
of almost eight in 2012 and subsequent to the planned initial losses
during the start-up phase now reports a profit well above
expectations. Our Singapore subsidiary - the cornerstone of our Asian
business - reports a strong order backlog and plans to quadruple its
sales as compared with 2012.

In Europe, the French and Greek subsidiaries are well positioned and
profitable. Capacities in Spain and Italy on the other hand have been
significantly reduced in view of the uncertainties in their local
markets and their challenges in reaching earnings targets. The
subsidiary based in Oman is to be closed.

The components & systems and the power plant businesses in Germany
will be divested. In addition to the components & systems and power
plant activities of the aforementioned international subsidiaries,
the profitable operations & maintenance unit located in Ulm, as well
as the development of new business models for the project and
distribution businesses, will remain an important focus of the
company moving forward.

Financing for the Group will continue to be secured by Phoenix Solar
AG. The lending banks have been consulted in detail about this shift
in strategy towards a fast return to profitable growth. Today, the
company signed contract amendments regarding the corresponding credit
agreements. Accordingly, the total financing volume was slightly
adjusted down to approximately EUR 126 million. The credit lifetime
was extended ahead of schedule by another year from 31 March 2014 to
31 March 2015.

This shift in strategy will necessitate that extraordinary expenses -
largely write-downs and provisions - be accounted for in the
financial statements as of 31 December 2012. Prior to these
extraordinary expenses of approximately EUR 8 million, the most
recent revenue and earnings forecasts for the 2012 financial year
would have been fully met. Including these expenses, however,
preliminary figures show operating losses (negative EBIT) of around
EUR 32 million (operating losses 2011: EUR 84.7 million; previously
forecasted for 2012: EUR 25 million to EUR 19 million operating
losses). In contrast to previous expectations for 2013, Phoenix Solar
now expects its revenues to reach EUR 160 million to EUR 190 million,
significantly less than the original forecast of EUR 280 million to
EUR 310 million. The previous earnings forecast (EBIT less
restructuring expenses), however, of around EUR 5 million losses and
EUR 0 million is being maintained.

Dr. Andreas Hänel, founding Director of Phoenix Solar AG, today
announced his resignation from his position as member of the Board of
Management ahead of time and effective 28 February 2013. Expressing
its regret, the Supervisory Board accepted his resignation. The Board
extended its gratitude to Dr. Hänel for his long-year and successful
service as CEO, which in 2008 led Phoenix Solar AG to a TecDAX
listing. Showing complete dedication, Dr. Hänel also managed the
company throughout the recent difficult restructuring. He will
continue to serve the company in a consulting capacity.

Also today, the Supervisory Board has appointed Dr. Bernd Köhler CEO
effective 1 March 2013. Dr. Köhler will continue to also serve as CFO
of the company. Dr. Murray Cameron remains member of the Board of
Management and in charge of Operations (COO) as well as CEO &
President of the US subsidiary.

"The discontinued operations made significant operating losses in
2012. This did not come unexpectedly. But the ongoing adverse market
effects and the regulatory changes in disfavour of photovoltaics made
it increasingly unlikely that the expected increase in shipments
which was needed for a return to profitability would actually come to
occur in spite of numerous efforts by staff and management.
Therefore, we had to react with the severe cuts we are now executing
although this means to dismiss many qualified employees", said Dr.
Bernd Köhler.

Dr. Murray Cameron added: "Next to a reliable financing the ability
to flexibly and quickly shift gears is one central requirement to
maintain a significant position in the international photovoltaic
markets. The clear focus on the successful regions is a good starting
point for our return to profitable growth."

About Phoenix Solar AG Phoenix Solar AG, which has its headquarters
in Sulzemoos near Munich, is a leading international photovoltaic
system integrator. The Group develops, plans, builds and operates
large-scale photovoltaic plants and is a specialist wholesaler for
turnkey power plants, solar modules and accessories. With
subsidiaries on three continents, the company has sold solar modules
with an output of more than one gigawatt since its founding. The
shares of Phoenix Solar AG (ISIN DE000A0BVU93) are listed on the
official market (Prime Standard) of the Frankfurt Stock Exchange.
{www.phoenixsolar-group.com}[HYPERLINK:
http://www.phoenixsolar-group.com]

Further inquiry note:
Dr. Joachim Fleing
Investor Relations Representative
Phoenix Solar AG
Tel.: +49 8135 938-315
email: j.fleing@phoenixsolar.de

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Phoenix Solar Aktiengesellschaft
Hirschbergstraße 8
D-85254 Sulzemoos
phone: +49 (0)8135-938-000
FAX: +49 (0)8135-938-099
mail: kontakt@phoenixsolar.de
WWW: http://www.phoenixsolar-group.de
sector: Energy
ISIN: DE000A0BVU93
indexes:
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
M:access: München, regulated dealing/prime standard: Frankfurt
language: English