Solar Millennium uses synergy effects by merging technology
and power plant construction

• Flagsol and MAN Solar Millennium subsidiaries will gradually be combined
• Solar Millennium assumes a 74.9% controlling interest in the joint venture
• Existing technology leadership is to be expanded to include power plant construction
• The aim is to enhance the efficiency of parabolic trough power plants while simultaneously reducing the cost of power generation significantly

Erlangen/ Cologne/ Essen, 2 September 2009  Solar Millennium AG in Erlangen, Germany, (ISIN DE0007218406) is merging its technology and power plant construction subsidiaries for parabolic trough power plants. The first step will be completed by incorporating Flagsol GmbH, Cologne, into MAN Solar Millennium GmbH, Essen, as a subsidiary. By this step, Solar Millennium is increasing its share in MAN Solar Millennium from 50 to 74.9% by providing its previously fully owned technology subsidiary Flagsol to this company as a contribution in kind. A 25.1% share in MAN Solar Millennium remains in the hands of MAN Ferrostaal. In a second step, MAN Solar Millennium and Flagsol will be amalgamated into one company within the next six months. After the amalgamation, the new company will operate as Flagsol GmbH, headquartered in Cologne. Presently, the reorganization and merger of Flagsol and MAN Solar Millennium is still subject to approval by the German Federal Cartel Office.

Christian Beltle, CEO of Solar Millennium, says: "The merger of our technology and parabolic trough power plant construction know-how will allow us to benefit from synergy effects and to reduce costs. We are thus enhancing the excellent position of the entire Solar Millennium Group in the market for solar thermal power generation and are creating the basis for our company's strong growth. Having a majority share in the joint venture, we are able to strengthen our corporate clout in the future as well as to fully consolidate both MAN Solar Millennium and Flagsol in the Group's financial statements."

The member of the board of Directors at MAN Ferrostaal, Dr. Klaus Lesker, amongst others responsible for the solar business, considers this step a positive development for the solar business of MAN Ferrostaal: "The transaction allows us to have a direct access to the solar-thermal parabolic trough technology. We will become the exclusive partner for the new Flagsol. At the same time, the new joint venture benefits from this development, too, as we will provide the new Flagsol with our international organization as a distribution platform with presence in 60 countries."

Dr. Wolfgang Knothe, the Managing Director of MAN Solar Millennium and member of Solar Millennium's extended Management Board explains: "By merging technology and power plant construction, we have now bundled the entire know-how for project development, design and construction of solar power plants in one single company unit. The major Spanish Andasol 3 and Ibersol projects are already being implemented by the restructured joint venture. Close cooperation with both parent companies will also continue to be an important success factor for our business in the long term."

Paul Nava, Managing Director of Flagsol, adds: "Flagsol already is the technological leader in this market today. Through reorganization, our engineering teams will be able to cooperate even more successfully in the future. We will use the synergy effects to further enhance the efficiency of parabolic trough technology and continue to lower the cost of solar thermal power generation considerably. So we will become competitive when compared to conventional peak and medium load conventional power plants in the medium to long term without having to resort to governmental subsidy."

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with its main emphasis on solar-thermal power plants. Together with its subsidiaries, the company specializes in parabolic trough power plants, a proven and reliable technology with which the Group has adopted a leading position worldwide. Solar Millennium covers all important business sectors along the value chain for solar-thermal power plants - from project development and technology to turn-key construction as well as plant operation and investments in power plants. In Spain, Solar Millennium developed Europe's first parabolic trough power plants and realized them with its partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts. The current regional focus is on Spain, the US, China and North Africa. Furthermore, the company has the aim of achieving market readiness for the so-called Blue Tower technology for the generation of product gas that is rich in hydrogen through the reformation of regenerative residual materials, and also for solar chimney power plants in the long run.

About Flagsol GmbH:
Flagsol GmbH, Cologne, is a technology company with around 65 employees that specializes in parabolic trough power plants. Flagsol designed Europe's first ever parabolic trough power plants in the south of Spain, known as the Andasol power plants. Furthermore, Flagsol is supplying the technology and important components for the first parabolic trough solar field in Egypt. Flagsol employs the "architects" of the solar field. The company's engineers are responsible for developing the design of the collectors, calculating the required size of the solar field and aligning the collectors within the field. During the construction phase, Flagsol supervises the quality of the collectors featuring high-precision optics. In addition, the company delivers the control equipment for the solar field, which is a key component for the operation of the overall plant. Flagsol is active in a number of research and development projects for improving the parabolic trough in order to further expand the existing competitive edge.

About MAN Solar Millennium GmbH:
MAN Solar Millennium GmbH, Essen, a joint venture by Solar Millennium and MAN Ferrostaal, specializes in the construction of solar thermal power plants. In May 2007, the company was founded as a joint venture of Solar Millennium AG and MAN Ferrostaal Power Industry GmbH, a subsidiary of MAN Ferrostaal AG. In this joint venture, Solar Millennium and MAN Ferrostaal have united their competencies in the development and construction of large-scale solar power plants. As a project developer and technology provider, Solar Millennium has at its disposal a technology that is already being used commercially and many years of experience in the development of solar thermal power plants. MAN Ferrostaal, in turn, is a globally renowned plant construction company and general contractor with financing competencies and thus capable of realizing large power plant projects. MAN Solar Millennium currently employs around 50 staff. Among other projects, the company is involved in the construction of the parabolic trough power plant Andasol 3 in the south of Spain.

About MAN Ferrostaal AG:
MAN Ferrostaal is a global provider of industrial services in plant construction and engineering. As a general contractor in plant construction, the company offers project development, project management and financial planning for turnkey installations including petrochemical plants, gas and solar power stations, oil and gas installations, biofuels and industrial plants. MAN Ferrostaal operates as an independent sales and service partner in the automotive, printing and packaging machinery, piping and marine construction sectors, employing around 4,400 people in 60 different countries. In 2008, its annual turnover amounted to more than 1.6 billion euros. 70 % of shares in MAN Ferrostaal AG are owned by the International Petroleum Investment Company from Abu Dhabi (IPIC), 30% are held by MAN AG (Munich). More information at http://www.manferrostaal.com.

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 the press release here.