Merger of technology and power plant construction subsidiaries Flagsol and MAN Solar Millennium completed

• Company operates under the name of Flagsol GmbH
• Solar Millennium assumes a 74.9% controlling interest in the joint venture with Ferrostaal 
• Another step towards becoming one of the global leaders in the development, construction and operation of parabolic trough power plant
  

Erlangen/Köln/Essen, 25 May 2010  With the entry in the commercial register, Solar Millennium AG, Erlangen, (ISIN DE0007218406) has formally and legally concluded the merger of its technology subsidiary and its power plant construction joint venture, Flagsol GmbH (Cologne) and MAN Solar Millennium GmbH (Essen). With 74.9 percent of shares, Solar Millennium AG has taken a controlling interest in the joint venture. The other 25.1 percent of shares are held by the Ferrostaal Group, Essen. The company will operate as Flagsol GmbH, headquartered in Cologne with further subsidiaries in Essen, Madrid, Berkeley, Johannesburg and Abu Dhabi. The company will focus on the development of technology for solar-thermal power plants and on EPC contracting (Engineering, Procurement & Construction) for parabolic trough solar fields and power plants.

Thomas Mayer, spokesman for Solar Millennium's Management Board explains: "By merging our technology and construction know-how for parabolic trough power plants in one single company we will be able to use synergy effects and make parabolic troughs even more efficient in close cooperation with our partner. At the same time we thus intend to sustainably expand our position as one of the leading suppliers in the development, construction and operation of parabolic trough power plants worldwide. The majority share in the joint venture will strengthen our operating power. The new Flagsol will be fully consolidated in the corporate financial statements, allowing for increased sales and earnings from the Power Plant Construction segment."

Dr. Wolfgang Knothe, CEO of Flagsol GmbH, adds: "By combining technology and plant construction, we have now bundled our complete know how in the development, design and construction of solar power plants in one single business unit. The Andasol 3 project is already being realized by the restructured joint-venture, as well will be Ibersol. This combination of competence and experience is the foundation for becoming the technology and cost leader for parabolic trough power plants in the long term. Moreover, we intend to establish Flagsol as one of the globally leading suppliers for services and products in connection with the construction, operation and maintenance of solar-thermal power plants. The close cooperation with both our parent companies will continue to guarantee our success in the future."

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with its main focus on solar-thermal power plants. Together with its subsidiaries and associates, the Company specializes in parabolic trough power plants and has managed to take a globally leading position in this field. Solar Millennium strives to further extend its expertise in the area of solar-thermal power plants with the aim of achieving and securing sustainable technology leadership. As such, the Company covers all important business sectors along the value chain for solar-thermal power plants: from project development and financing to the technology and the turnkey construction and operation of power plants. In Spain, Solar Millennium developed Europe's first parabolic trough power plants and realized these together with partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts: here the current regional focus is on Spain, the US, India, China, the Middle East and North Africa.

About solar-thermal power plant technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a parabolic trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.

You can download this press release here.