EANS-News: Sunways AG / First quarter 2012 affected by strong decline in selling prices

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Financial Figures/Balance Sheet/quarterly report/3-month report

Subtitle: - Deterioration of prices continues to have significant
negative impact on profitability - Solar module sales volumes
affected by production bottlenecks

Konstanz (euro adhoc) - 16 August 2012 - In the first three months of
the current fiscal year, operations of Sunway AG (SWW:GR, SWWG.DE,
ISIN DE0007332207) experienced a weak development. Reductions of
solar subsidies announced in Germany and other European markets were
not reflected in Sunways' sales revenues in the form of corresponding
pull-forward effects. This was due to the limited availability of
solar modules resulting from production bottlenecks. In addition,
pressures on selling prices, in particular for solar modules but also
for inverters, continued and even increased during the first three
months of 2012. In the first three months of 2012, the Sunways
Group's sales revenues declined by more than half against the prior
year quarter to EUR 10.4 million (Q1/2011: EUR 22.2 million). The
operating result (EBIT) was negative at EUR 6.8 million (Q1/2011: EUR
-3.5 million).

Weak international business In the period under review, Sunways
generated international sales revenues in the amount of EUR 3.3
million (Q1/2011: EUR 12.8 million). Business developments in Italy
and Spain, where sales in each case declined by more than 90 %
against the prior year quarter, were particularly disappointing. As
of 1 January 2012, the Spanish government suspended solar subsidies.
However, due to the intensified cooperation with the LDK Solar Group,
sales in Asia increased to EUR 0.4 million (Q1/2011: -) in the first
quarter of 2012. In all, Sunways AG's international sales decreased
by 74.2 % or EUR 9.5 million against the first quarter of 2011
(Q1/2011: EUR 12.8 million).

Module supply affected by production bottlenecks Due to the
deterioration of market prices, sales in the solar cell segment fell
below the figure reported in the comparable prior year quarter. Sales
revenues declined by 46.7 % from EUR 7.5 million in the prior year
quarter to EUR 4.0 million in the first quarter of 2012. Sales
volumes also decreased markedly by 28 % to 4.9 megawatts peak in the
first quarter after 6.8 megawatts peak in the first quarter of 2011.

Due to materials bottlenecks in the module production at LDK Solar in
China, the supply of Sunways solar modules in the first quarter was
inadequate. This could partially be offset by the use of LDK
merchandise. Sales volumes of solar modules only amounted to 6.4
megawatts peak in the first quarter of 2012 and thus fell by 45.3 %
against the relevant figure for the prior year quarter of 11.7
megawatts peak. The deterioration of selling prices achievable in the
market (which declined by more than 40 % within a period of 12
months) also contributed to this development. Accordingly, sales in
the first quarter of 2012 dropped by 68.9 % to EUR 5.1 million
(Q1/2011: EUR 16.4 million).

Compared to the first quarter of the fiscal year 2011, the Sunways
Group's sales in the solar inverter segment increased by 32.0 % to
EUR 4.1 million (Q1/2011: EUR 3.1 million). The sales volume of 24.3
megawatts peak in the first three months of the current year almost
doubled from the 12.6 megawatts peak sold in the first quarter of
2011. On the other hand, the prices for solar inverters also
decreased markedly (decline by about 30 % within a period of 12
months).

LKD Solar's acquisition of a stake in the company as an anchor
investor was successfully completed In the first quarter of 2012,
Sunways AG's capital increase from authorized capital resolved on 31
December 2011 was successfully completed. Only LKD Solar German
Holding GmbH, an indirect subsidiary of LDK Solar Co., Ltd., was
permitted to subscribe for shares. Upon completion of the capital
increase, the interest of LDK Solar Germany Holding GmbH amounted to
about 33 %. Simultaneously with the resolution on the capital
increase, LDK Solar Germany Holding GmbH announced a voluntary public
takeover offer with respect to all outstanding shares of Sunways AG.
From the point of view of the Management Board and Supervisory Board
of Sunways AG, the acquisition of a majority stake in the Company by
the LDK Solar Group involves competitive advantages and promising
international prospects for Sunways. Therefore, they recommended that
shareholders should accept the offer. Upon completion of the takeover
offer on 12 April 2012, LDK Solar Germany Holding GmbH published the
total number of voting rights attributable to it: with about 71 % of
the share capital and voting rights it had become Sunways AG's
majority shareholder and sole shareholder with a reportable voting
interest.

Prospects for the fiscal year 2012 The situation in the global
photovoltaics markets will continue to be marked by significant
pressure on prices and competitive pressures in the current fiscal
year. "Our objective for the fiscal year 2012 is to stabilize our
sales revenues", says Michael Wilhelm, Chairman of the Management
Board of Sunways AG. "As far as the operating result (EBIT) is
concerned, we expect to reduce our losses."

"As a member of the LDK Solar Group, Sunways will have access to the
Chinese market and other international growth markets and customer
segments. Purchasing benefits with respect to primary products from
the LDK Solar Group and the access to production plants in China may
significantly improve the Sunways Group's profitability", says
Wilhelm. In addition, LDK Solar and Sunways are planning to
complement each other's product portfolio and to jointly develop new
products, such as e.g. high-performance solar modules and inverters
for new markets and requirements.

"The LDK Solar Group also supported our funding activities", adds
Michael Wilhelm. "In particular, we appreciate LDK's support in
financing the Company by extended payment terms for goods and
services from China."

Key figures Q1/2012 Group Sales revenues: EUR 10.4 million (Q1/2011:
EUR 22.2 million) EBITDA: EUR -5.1 million (Q1/2011: EUR -1.9
million) EBIT: EUR -6.8 million (Q1/2011: EUR -3.5 million)
Consolidated net income/loss: EUR -7.3 million (Q1/2011: EUR -2.7
million) Earnings per sharee: EUR -0.42 (Q1/2011: EUR -0.23) Sales
revenues Germany: EUR 7.1 million (Q1/2011: EUR 9.4 million) Sales
revenues rest of Europe: EUR 2.9 million (Q1/2011: EUR 12.8 million)
Number of employees (31/03/2012): 299 (31/03/2011: 348)

Solar cell segment
Sales revenues: EUR 4.0 million (Q1/2011: EUR 7.5 million)
EBIT: EUR -1.6 million (Q1/2011: EUR -0.8 million)
Sales volume: 4.9 MWp (Q1/2011: 6.8 MWp)

Solar module segment
Sales revenues: EUR 5.1 million (Q1/2011: EUR 16.4 million)
EBIT: EUR -2.5 million (Q1/2011: EUR -1.1 million)
Sales volume: 6.4 MWp (Q1/2011: 11.7 MWp)

Solar inverter segment
Sales revenues: EUR 4.1 million (Q1/2011: EUR 3.1 million)
EBIT: EUR -2.7 million (Q1/2011: EUR -1.6 million)
Sales volume: 24.3 MWp (Q1/2011: 12.6 MWp)

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

Q1 financial report is available at http://www.sunways.eu/en/company/
investor-relations/financial-reports/quarterly-reports/.

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 http://www.sunways.eu/en.

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