Solar Millennium issues new bond and thereby secures key power plant components ahead of time

• Worldwide high increase in demand for solar-thermal power plants
• Cost advantages expected by acquiring components ahead of time
• New corporate bond for financing

Erlangen, 07.07.2008 Solar Millennium AG issues a corporate bond as of 08.07.2008 to in the amount of €40 million. The issuing takes place against the backdrop of a pleasingly strong growth in the worldwide power plant market, especially for solar-thermal power plants. Due to the rising demand, Solar Millennium wants to secure key power plant components ahead of time, which will be pre-financed with the proceeds of the bond. This includes among others, components with long delivery times like absorber pipes, parabolic mirrors and turbines. Additionally, the proceeds serves to provide securities in completing the projects, especially in depositing securities.

The bond, which will be distributed directly by Solar Millennium, can be applied for until they are fully placed, albeit until 07.07.09 at the latest. Thomas Mayer, Financial Director of Solar Millennium explains the basic idea of the strategy: "Early ordering secures the timely delivery of the components and makes cost advantages possible. Furthermore, we increase planning security. In the light of the steady positive corporate development, I am very optimistic that our bond will be received very positively by the market due to the attractive conditions it offers."

With an annual interest rate of 6.75% and a term of five years, the Erlangen company's bond offers attractive conditions and a stable investment opportunity in a type of solar technology with exceptionally good market prospects. Renowned research institutes like the German Aerospace Centre (DLR) are forecasting strong market growth for solar thermal power plants. By 2050, solar-thermal power plants in the Mediterranean region could produce double the amount of power produced by wind, photovoltaics, biomass and geothermics combined. According to a DLR study, fossil fuels will then have largely been replaced by renewable energy sources.

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with its main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specializes in parabolic trough power plants - a reliable, proven technology in which the company is a worldwide leader. The company covers all major business sectors of the value-added chain for solar thermal power plants, from project development to technology and turn-key construction of power plants, to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever parabolic trough power plants, two of which are already under construction. Further projects are planned with a capacity of several hundred Megawatts located worldwide, with the focus upon Spain, the USA, China and North Africa. The company is also developing solar chimney power plants, with the aim of making this technology ready for the market.

About solar thermal power plant technology:
Solar thermal power plants generate electricity using heat energy captured from solar radiation. In a parabolic trough power plant, trough-shaped mirrors concentrate the sun's rays onto a pipe in the focal line of the collector. Their absorption heats a transfer fluid in the pipe, generating steam in the power block by way of heat exchange. As with conventional power plants, the steam is utilized in a turbine to generate power, and by integrating thermal storage, this power can be supplied on demand. Thus, solar power plants can also generate electricity after sunset.

You can download the press release here.