Solar Millenium AG significantly improves turnover and outcome in fiscal year 2005/2006

• Turnover increases by 26% to about 17 million euros
• Profit after tax increases by 45% to about 10 million euros
• Solar Millennium releases corporation level results for the first time

Erlangen, December 22, 2006. Solar Millennium AG, with headquarters in Erlangen, is releasing its preliminary detailed results (according to commercial code) for the fiscal year 2006, which closed on Oct. 31, 2006. Turnover increased from about 13.41 million euros in the previous year to about 16.96 million euros. The annual return after tax increased from about 6.92 million euros to about 10.02 million Euros, thus meeting company expectations. This is, above all, the result of the successful financing negotiations for the solar-thermal power plant project Andasol 1. Additional successes included the involvement of the Group Energias de Portugal (EDP) in the Andasol 3 project as well as the strategic development of a holding company in the fiscal year's fourth quarter to boost financial investment.

For the first time, Solar Millennium AG is releasing its annual consolidated financial statements consistent with the International Accounting Standard (IAS) for fiscal year 2005/2006. According to the IAS, earnings increased from 14.25 million euros in the previous year to about 17.83 million euros. The company's return for fiscal year 2005/2006 comes to approximately 9.87 million euros after tax (7.29 million euros in the previous year). In addition to the above mentioned business activities, the operational business of technology subsidiary Flagsol GmbH especially contributed to Solar Millenium's positive results. The construction consortium from Andasol 1 has commissioned Flagsol to supply the engineering as well as the controls for the solar field. Therefore, the consolidated results correspond approximately to the preliminary detailed results.

For the current 2006/2007 fiscal year, the company is expecting significant further increase in turnover and profit. This increase is expected to come from an increase in earnings in the project development and technology fields as well as through revenue from the sales of power plant project shares. The scope of activities necessary for the development and implementation of solar-thermal power plants are also to be further developed and expanded with the cooperation of partners.

Christian Beltle, Chairman of the Board of Solar Millennium AG, was very pleased with the results of the past fiscal year: "Solar Millenium AG and its technology subsidiary Flagsol GmbH were able to successfully position themselves in the renewable energies market. We were thus able to accomplish our main goals, such as securing the financing from the banking institutions and starting the construction of the first parabolic trough power plant in Europe. At the same time, we managed to make significant progress in a series of power plant projects as well as in tapping the markets for locations in new countries. We therefore expect the financing for Andasol 2, the second parabolic trough power plant in Spain, to be granted shortly."

Regarding the switch to the new International Accounting Standard (IAS), Chief Financial Officer Mathias Drummer points out: "With the publication of its consolidated financial statements, Solar Millenium AG is increasing its transparency. At the same time, the company continues to adapt itself as a market-oriented company committed to strong growth. With this, Solar Millennium is creating favorable conditions to help broaden the potential circle of institutional investors."

The consolidated financial statements are to be released, fittingly, at the financial statement press conference in the beginning of February 2007.

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.