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SOLAR MILLENNIUM AG

2012-06-29

Solar Millennium: Auction for US investments successful

Erlangen, June 29, 2012. The two largest US projects of the insolvent Solar Millennium AG have found investors. The projects were sold as part of an auction that was concluded at the end of June as part of the ongoing US insolvency proceedings pursuant to Chapter 11. This was announced by the insolvency administrator of Solar Millennium AG, Volker Böhm, today. The sale relates to the project companies for the planned Blythe (buyer: the US NextEra Energy Group) and Palen (buyer: the BrightSource Energy Group, US) solar power plants. Both buyers have announced that they want to continue with the projects in the near future.

The auction generated total proceeds of 80 million US dollars. Part of the purchase price will not fall due for payment until certain project milestones are met. The question as to whether the creditors of Solar Millennium AG will receive at least part of the purchase price still depends on which of the insolvency claims that are pending in the US are recognized by the competent US court. This is because the purchase prices achieved will serve initially to cover the procedural costs and to satisfy certain preferential claims in the US. Decisions are still pending on a number of substantial disputed claims. The sale will be implemented when certain closing conditions have been fulfilled, which is expected to be in July or August.

In his negotiations with the bidders and the US creditors' committee, however, Böhm managed to agree that certain project-related guarantees issued in the course of the sale of Solar Millennium that have not yet been used would be redeemed. This will provide the creditors of Solar Millennium AG with an inflow of funds running into the millions in the near future.

At the beginning of April, Böhm had initiated insolvency proceedings based on Chapter 11 of the US Bankruptcy Code for Solar Millennium's US companies and investments. Restructuring pursuant to Chapter 11 explicitly provides for the use of an auction as a realization option, and Böhm made use of this to initiate an organized sale process for the US projects. An initial attempt to sell the investments had previously failed when the buyer – Solarhybrid AG – became insolvent at the last minute.

A due diligence process was conducted by the bidders prior to the auction. The investor process continues for the Amargosa and Ridgecrest projects.

Contact:
Solar Millennium AG
Phone: +49 (0)9131 9409-0

Press Contact:
möller pr
E-Mail:  cm@moeller-pr.de
Phone: +49 (0)221 80 10 87-87

This press release constitutes neither an offer to sell nor the solicitation of an offer to buy any securities of Solar Millennium AG. The press release shall not form the basis for investment decisions regarding securities of the company. Any such investment decision of a prospective investor shall be based solely on such prospective investor's own investigations and assessments.

This release contains forward-looking statements. These statements are not a description of past facts, but rather relate to expectations and opinions of Solar Millennium AG. These statements are based on current plans, assessments and forecasts of the company. Investors should not rely on these statements. Forward-looking statements must be understood in the context of the circumstances existing at the time when they were made. The company assumes no obligation to update the forward-looking statements in this release based on new information or future events. Forward-looking statements always involve risks and uncertainty. Due to a multitude of factors, actual events and actual developments may differ significantly from the forward-looking statements contained herein. This press release was originally prepared in German. The translation of this release or parts thereof is considered as a service for journalists, analysts and investors who are not able to understand German. Only the German version is legally binding.