Phoenix Solar AG signs framework agreement worth more than EUR 275 million for photovoltaic power plants
- Intensification of cooperation with KGAL- Focus on global photovoltaic market

Sulzemoos - Phoenix Solar AG has signed a long-term agreement with Munich-based KG Allgemeine Leasing GmbH & Co. (KGAL) in which the two parties agree that the Phoenix Solar Group will develop photovoltaic power plants and build them on behalf of KGAL, as the general contractor. For the period from 2008 to 2010 alone, the investment volume is worth at least EUR 275 million. The target markets for the construction of the power plants are Germany, Spain, Italy, Greece and France and, in future, additional countries where the economic conditions are suitable.

Since 2005, Phoenix Solar has been building power plants with an output totalling 16 megawatts for KGAL, which includes a 6.5 MW power plant in La Solana, Spain, which is close to completion. This year is to see more megawatt projects being completed for KGAL in Germany as well.

Just last month, a joint venture established by Phönix Projekt & Service AG and KGAL signed a project development contract for a photovoltaic power output of more than 25 MW with a project developer based in Greece.

“Through this new framework agreement we are sending a positive signal to the market: we are delighted to be able to work side by side with such an excellent partner in stepping up our efforts in supporting the sustainable development of the solar energy sector”, commented Dr. Klaus Wolf, member of the Board of directors of KGAL.

“Phoenix is intensifying its strategic cooperation with KGAL through this framework agreement, thus setting a milestone in the further expansion of the Phoenix Solar Group. The framework agreement takes account of the improved module procurement situation and underscores the long-term positive development of the global solar market”, said Dr. Andreas Hänel, CEO of Phoenix Solar AG.


This is an English translation of the German original. Only the German version is binding.



About Phoenix Solar AG

Phoenix Solar AG, which has its headquarters in Sulzemoos near Munich, is a leading international photovoltaic systems integrator. Until June 2007, the company, which was set up in 1999, went by the name of Phönix SonnenStrom AG. In the financial year 2006, the Phoenix Solar Group achieved sales of EUR 119 million in Germany and abroad. Phoenix Solar AG plans, builds and operates large photovoltaic plants and is a specialist wholesaler for complete power plants, solar modules and accessories. The Group is a leader in photovoltaic systems technology. It focuses on the consistent lowering of system costs. With a sales network which covers the whole of Germany, and subsidiaries in Spain and Singapore, as well as a participation in Italy, the Group currently has a workforce of more than 130 employees. The shares of Phoenix Solar AG (ISIN DE000A0BVU93) are listed on the official market (Prime Standard) of the Frankfurt Stock Exchange.


About KG Allgemeine Leasing GmbH & Co. (KGAL)

Today the company leverages its experience and expertise to the optimal benefit of its customers in its two divisions of “Funds and Asset Management “ and “Corporate Solutions“The intention is, on the one hand, to cater professionally to the demand of investors for future-oriented investment products and, on the other, to be innovative in covering the growing need of the business community and the public sector for financing. With a volume of new business of EUR 7.3 billion in 2006 and assets under management of EUR 37 billion (portfolio volume at acquisition cost), the company ranks among the high performers and most successful companies operating in the sector. As a leading fund initiator in Germany, KGAL has been offering future- and return-oriented opportunities to investors for more than 25 years. As per 31 December 2006, approximately 87,400 private and institutional investors had entrusted the company with equity worth around EUR 9.0 billion invested in a total of 294 funds.




Sulzemoos, 11 September 2007

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Andrea Zepf, Corporate Communications & Public Relations Phoenix Solar AG.

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Fax: 08135-938-399
E-mail: a.zepf@phoenixsolar.de>a.zepf@phoenixsolar.de
Internet: http://www.phoenixsolar.de

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