Solar Millennium publishes interim report. Board of Directors confirms forecast for the current financial year

• Revenues increase by 11% to € 12.3 million as at 30.06.2008 compared to the first eight months of the previous year
• Growth strategy continued by major investments for the future in the power plant construction sector
• Revenues of € 80 million and net profit of € 18 million Euros planned for the current financial year

Erlangen, 26.08.2008  Solar Millennium AG (ISIN 0007218406) is continuing with the consistent implementation of its growth strategy in the current financial year. With the publication of the group's interim report, the board of directors confirmed its expectations for the current fiscal year to achieve revenues of € 80 million and net profit of € 18 million. During the first eight months of the current financial year from November 1, 2007 to June 30, 2008, consolidated revenues increased by around 11% to € 12.3 million compared to the first eight months of the previous fiscal year (11.0 million Euros). The balance sheet total went up 92% from € 120.1 million to € 230.3 million. Net profit amounted to € 0.3 million compared to € 1.7 million for the corresponding period in the previous year. The decrease is due the fact that significant turnover and profit from the development and implementation of solar-thermal power plants are not expected until the last quarter of the current financial year.

The revenues were largely derived from the project development and technology business sectors. Key factors here were settlements for project development services as well as the positive business developments in the engineering field. As in the previous year, the 100% subsidiary Flagsol GmbH in Cologne has achieved revenues from solar field design and the supply of control components for the first parabolic trough power plants in Europe, Andasol 1 and Andasol 2. The current financial year has also seen the start of the design of the solar field for a hybrid power plant in Egypt (Kuraymat) as well as the supply of key components.

In addition to revenues from existing contracts in the technology sector, the board of directors expects significant revenues and profit from the project financing and plant engineering sectors during the last quarter of the current fiscal year. The sale of shares in project and power plant companies is expected to have a particular impact on the results.

Christian Beltle, chairman of the Solar Millennium board: "In keeping with our growth strategy, we have seen further development in the power plant construction segment in the recent months. We will profit from these major investments for the future in the last quarter of the current financial year, and even more in the years to come. With the expansion of the business sectors and an increase in both the size and number of our projects, we expect greater consistency in obtaining our results in the future, so that a more meaningful comparison between our interim reports should be possible."

Solar Millennium AG's interim report to June 30 2008, based on IFRS, can be downloaded here.

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with a main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specialises in parabolic trough power plants - a reliable, proven technology in which the company has a worldwide leading position covering all major business sectors along the value chain for solar thermal power plants from project development over technology and turn-key construction to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever parabolic trough power plants, which are already under construction. Further projects are planned worldwide with an overall capacity of several hundred Megawatts. The current regional focus is on Spain, the USA, China and North Africa. In addition, the company develops solar chimney power plants aiming to make this technology ready for the market.

About solar thermal power plant technology:
Solar thermal power plants generate electricity using thermal energy converted from solar radiation. In a parabolic trough power plant, the solar radiation is concentrated by trough-shaped mirrors onto a pipe in the focal line of the collector and absorbed by a heat transfer fluid which, thus, heats up to about 400°C. The heat is transported by the fluid to the power block where it generates steam by means of a heat exchanger. As with conventional power plants, the steam powers a turbine to generate electricity. And by integrating a thermal storage, electricity can be supplied on demand, even after sunset.

You can download the press release here.