euro adhoc: Solar-Fabrik AG / Quarterly or Semiannual Financial Statements / Solar-Fabrik continues growth! (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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29.07.2005

Solar-Fabrik AG (ISIN: DE0006614712) has met its targets for the first half of
2005 and is raising its targets for the fiscal year as a whole.

The extraordinary expenses from the successful capital increase in March of this
year in the amount of EUR 1,292,000 and scarce supplies of materials influenced
earnings after taxes, which amounted to minus EUR 2,393,000 (previous year EUR
318,000). Net earnings per share amounted to EUR -0.30 (previous year: +0.06).
Earnings before interest and tax (EBIT) amounted to minus EUR 1,776,000
(previous year EUR 536,000).

To overcome the short supply of materials, Solar-Fabrik AG recently took over
the wafer-trading company Global Expertise Wafer Division Ltd. (GEWD). The
purchase of GEWD adds a strategically important segment of the value chain to
the Company's portfolio. GEWD is a wafer trader with many years of experience in
the procurement of wafers on Asian and transatlantic procurement markets. GEWD
is considered the market leader in the recycling of semiconductor silicon and
has a secure supply in Asia and the US into 2008. In the past few years, GEWD
has been posting tremendous growth rates and expects growth to continue an
average of 30% per annum.

Wafers are the raw material for the production of solar cells, which are
required for the production of modules in Freiburg, Germany. The global boom on
the photovoltaics market has made wafer resources a scarce commodity, creating
bottlenecks in the supply of solar cells as well. As a result, in the past few
months Solar-Fabrik was not always able to run at full production capacity even
though its order books are full. The wafers of the 100% subsidiary company will
now be processed into high-quality solar cells, creating additional potential of
more than 30 megawatts per year starting already in 2006.

This alone will allow Solar-Fabrik AG to double its production, which will in
turn become all the more profitable due to economies of scale. In the current
fiscal 2005, Solar-Fabrik AG has already procured more than 5 MW of additional
sales via this new subsidiary and increased its capacity utilization. Production
will be running at full capacity starting in the fourth quarter of 2005.

By taking over this company, the management at Solar-Fabrik has finally managed
to secure the supply of raw materials for 2005. Earnings will now continue to
improve. The Company's record sales of 2004 should now be exceeded by more than
30%!

Further inquiry note:
Martin Schlenk
Tel. +49(0)761 4000 207
E-Mail: [email protected]

end of announcement euro adhoc 29.07.2005 07:53:15
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emitter: Solar-Fabrik AG
Munzinger Str. 10
D-79111 Freiburg
phone: +49(0)761 4000 0
FAX: +49(0)761 4000 199
mail: [email protected]
WWW: http://www.solar-fabrik.de
ISIN: DE0006614712
indexes:
stockmarkets:
sector: Alternative energy
language: English

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