Financing granted to Solar Millennium AG for Andasol 2, the second parabolic trough power plant in Europe

• Construction of the 300 million euro project to begin within weeks
• Solar electricity for 200,000 people
• Partnership with Spain's largest construction company

Erlangen/Madrid, December 28, 2006. Finance contracts were signed with the banking institutions yesterday for Andasol 2, the second European parabolic trough power plant. The construction of a large-scale solar-thermal power plant with a capacity of 50 Megawatts is to begin in the upcoming weeks. Andasol 2 is located in the southern Spanish province of Granada, in the immediate vicinity of affiliated project Andasol 1, which itself has been under construction since June 2006. After construction is completed in approximately two years, the power plant will be capable of supplying environmentally-friendly solar electricity to 200,000 people.

The ACS/Cobra Group, Spain's largest construction company, is partner in the 300 million Euro Andasol 2 project. The company holds 75 percent of the project company's shares, which it purchased from Solar Millenium AG in 2005. Solar Millenium AG continues to hold the remaining 25 percent.

Now that the financing has been granted, the general contractor has also been commissioned to construct the large-scale solar-thermal power plant. At the same time, Solar Millenium AG is receiving payment for its successful project development. Flagsol GmbH, the technology subsidiary of Solar Millennium AG, will carry out the planning and conception of the solar field for Andasol 2 and will supervise construction on behalf of the general contractor. Solar panels with a total surface of over 510,000 square meters are being erected - about the size of 70 soccer fields.

Unlike photovoltaics, which produce electrical power directly from sunlight with the help of solar cells, solar-thermal power plants generate electricity using the heat captured from solar radiation. Andasol 2 is additionally equipped with a heat storage, which mean that the availability of electricity can be planned in advance, enabling electricity to be provided to the Spanish high voltage grid even after sunset. The input of solar electricity will greatly enhance grid stability.

Christian Beltle, Chairman of the Board of Solar Millennium AG, comments with satisfaction on the successful conclusion of the financing negotiations: "We are pleased that the banking institutions have already granted us the second financing in this year alone for the implementation of our 300 million Euro project. The confidence that the authorities, investors and banks alike have invested in the technology of solar-thermal power plants encourages us to further extend our business activities with confident determination."

Solar Millenium AG is planning the construction of a least one additional plant at the same location in Andalusia. The third project is to be completed jointly with NEO Energía, a subsidiary of the Portuguese Group Energias de Portugal, S.A. (EDP). Additional projects are in the planning stages at other locations throughout Spain. These projects are to be implemented in cooperation with Spanish corporations as well.

About Solar Millennum AG:
Solar Millennium AG is an innovative project development and technology company in the renewable energy sector which is active around the world. Together with its subsidiaries and partners, Solar Millennium AG plans and constructs solar thermal power plants, and has specialized in two technologies in this field. Firstly, it is a technology provider for parabolic trough power plants, a proven and reliable technology in which Solar Millennium is regarded a world leader. Further, the company develops solar chimney power plants with the objective to make this technology marketable. The main focus of current projects is Spain, the USA and China.

About the technology:
Solar thermal power plants generate electricity using the heat captured from solar radiation. In a parabolic trough power plant, trough-shaped mirrors focus the incident solar radiation onto a pipe in the focal line of the collector. A heat transfer medium in the pipe is heated, and this generates steam in the power block section using heat exchangers. The steam is then used to operate a turbine which generates electricity in the same way as in conventional power plants. Integration of a thermal storage system means the availability of the electricity can be planned. Therefore, the solar power plants can also generate electricity after sunset.