November 13, 2008

Oldenburg Germany: aleo solar AG Boosts Revenue in First Nine Months

aleo solar AG increased its revenue by 61.6% in the first nine months of 2008 to EUR 256.2 million (comparable period of 2007: EUR 158.6 million). The proportion of international revenue amounted to 53.2%. EBIT increased by 68.2% to EUR 18.0 million (EUR 10.7 million), while the EBIT margin remained stable at 7.0% (6.8%). Earnings per share almost doubled to EUR 0.94 (EUR 0.49).

Production output rose to 95.8 megawatts, an increase of 53.0% compared with the prior year period. Business in the German domestic market continued to develop positively, with revenue growing by 12.1% to EUR 119.9 million (EUR 107.0 million). Aleo increased international revenue by 164.0% year-on-year to EUR 136.3 million.

In Spain, the new feed-in legislation will benefit decentralized roof-mounted installations in the coming year and aleo solar AG expects its market position to remain strong there. Italy will also continue its positive development. Aleo says it, too, is a classic market for roof-mounted installations.

Aleo Solar is steadily expanding our customer base thanks to our specialist dealer program, "aleo power network". With a branch in Treviso and a nationwide sales platform, aleo solar AG says the company is well positioned for this growth.

The Management Board also expects more attractive tariffs for roof-mounted installations in France due to the changes to the feed-in legislation that are on the horizon. In addition, aleo's business in Greece, Belgium and the Czech Republic is growing.

The continuation of tax incentives on the US market means that this will also be able to develop extremely positively. The Investment Tax Credit (ITC) for solar installations was extended by 8 years. The decisive factor will be the priority given by the new president to the expansion of renewable energies.

"Our strengths are the aleo modules’ premium quality and our own sales force for the small and medium-sized roof-mounted installations business", said Uwe Bögershausen, member of the Management Board and CFO of aleo solar AG.

Since feed-in tariffs are guaranteed by the governments concerned, photovoltaic installations are also becoming increasingly attractive for safety-conscious investors. Additional growth momentum is also coming from the "Ensuring Job Safety by Strengthening Growth" measures resolved by the Federal German Cabinet. Further support is provided in Germany by KfW Bank's loan offerings.

The expansion of production capacity in Prenzlau to 180 megawatts is nearly completed, while the increase to 50 megawatts in Gaomi (China) will be implemented more rapidly. Including the capacity at the Santa María de Palautordera (Spain) location, this means that the aleo solar Group's total production capacity will amount to 250 megawatts in the coming year.

For 2008, aleo solar's Management Board is expecting strong year-end business and revenue of at least EUR 330 million, along with an ongoing sound EBIT margin. The Company is reiterating its forecast of EUR 380 million in revenue for 2009.

Further details about: aleo Solar