Solar Millennium wants to secure key power plant components ahead of time

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

Erlangen, 13.06.2008 Solar Millennium AG (ISIN 0007218406) is preparing to issue a new corporate bond to the value of €40 million. With these proceeds, the Erlangen-based company plans in particular to pre-finance important power plant components which have long delivery times. In doing this, it is responding to the strong increase in demand in power plant construction, especially that of solar-thermal power plants.

The acquisition of these key power plant components is critical to scheduling, because the completion of the power plants depends on the availability and the delivery times of components. Placing orders early optimizes the planning security, because the delivery of the key components to the power plants can be secured long in advance. While the most important components for all three Andasol projects in Andalusia in southern Spain have already been secured, the planned bond serves the pre-financing of components for further power plant projects, especially in Spain.

Due to this capital measure and the possibility of early ordering arising from it, cost advantages in acquiring components as well as security in planning and sourcing the implementation phase can be achieved. As a result, direct proceeds from power plant construction and indirect revenues from the sale of investments will be generated. Additionally, the proceeds serve to provide securities in completing the projects, especially in depositing securities. The bond will be sold directly by Solar Millennium.

Thomas Mayer, Financial Director of Solar Millennium, explains the basic idea of the strategy: "Early ordering secures the timely delivery of components, making better cost-controlling possible in power plant construction. With the bond, we can roll the pre-financing of several power plants simultaneously. At the financial closure of the respective power plant project and the conclusion of the contract with the respective plant construction company which completes the project, the capital used will be freed up."

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.