Conergy makes changes to the Board of Management and strengthens its capital base to finance future growth

- Hans-Martin Rüter resigns; Dieter Ammer to take over as CEO
- Dr. Jörg Spiekerkötter joined as new CFO on 1st November
- Conergy increases its financial flexibility by EUR 100 million, of which EUR 70 million come through a capital increase without subscription rights
- Ammer: The aim is growth with a clear focus on profitability


Hamburg - Conergy, Europe’s largest solar power company will have a new Chief Executive Officer and is strengthening its capital with financial inflows of EUR 100 million. The company’s founder and Chief Executive Officer, Hans-Martin Rüter, will resign following the publication of the results for the first nine months (12th November 2007); Dieter Ammer, the Chairman of the Supervisory Board, will become interim Chief Executive.
Ammer, who, together with Rüter, founded Conergy nine years ago, will aim to continue the successful growth strategy, with a clear focus on profit and the core businesses. He will be supported by the new CFO, Dr. Jörg Spiekerkötter, a former Board Member of a DAX 30 company with experience of large companies, who joined the company on 1st November.

„Conergy has grown from a start-up to a billion Euro, global company with over 2,700 employees“, says Rüter. „Conergy has operations in 28 countries, is growing faster than the industry and will now have a management team with experience of large and international companies.“ Nikolaus Krane (responsible for the projects business) and Christian Langen (International and Sales) will remain members of the Board of Management. On 1st November Philip von Schmeling became a deputy member of the Board of Management, responsible for logistics, photovoltaics and Heat & Cooling.

The Board of Management and the Supervisory Board have reacted promptly to a shortfall in liquidity, which became apparent in recent weeks, and have taken action to significantly improve the capital of the company. This situation arose as a consequence of Conergy‘s strong, growth at the same time as delivery bottlenecks in the module market appeared. This shortfall has now been eliminated with the inflow of financial funds of EUR 100 million. This includes a capital increase decided by the Board of Management, to which some of the existing shareholders have contributed EUR20 million and, following a very short decision process over the last week, the German industrialist Dr. Otto Happel has contributed EUR 50 million. Among the existing shareholders, who have subscribed are Hans-Martin Rüter, Grazia Equity GmbH, Dieter Ammer and members of the family Andreas Rüter. At the same time, some of the banks will make available additional funds of EUR 30 million.

Otto Happel will subscribe to the capital increase and will own 4.25 percent of the increased share capital. He has also agreed with the existing shareholders to acquire options from them to purchase additional shares up to a stake of 25.1% at a price significantly below the current share price. The existing shareholders have thus made a great contribution to the stabilization of the company.

„We will draw a line under the uncertainties of the last weeks and we have stabilized our financial situation“, says Dieter Ammer. „We have put into place resources to expand further our leading position in the financially most attractive business areas in the fast-growing market for renewable energies.“ In the coming months, the new Board of Management will introduce and implement immediately, step-by-step, a three-part management plan. The management plan includes:

- Focus on profitable business areas
- Sustainable growth
- Optimization of cash management and working capital

Conergy‘s current high reliance on solar module suppliers will decrease progressively in the future as a result of its own, fully integrated solar module factory in Frankfurt (Oder). Additionally, Conergy has succeeded in securing long-term supply of a significant portion of the raw materials for its own module production through the contract with the US company, MEMC.

The outlook for the current year is subject to a critical examination of the balance sheet valuation principles of Conergy AG as well as to the findings of various working groups, which are currently analysing Conergy’s business areas.

„Hans-Martin Rüter is the inspiration behind Conergy and he is its founder. Conergy was for many years one of the most successful start-ups in German corporate history. His vision led to many successes and, in addition, as president of the Solar Industry Federation BSW, he contributed hugely to the fact that Germany is now the leading nation in the renewable energy business.“, Dieter Ammer said.


Hamburg, 8 November 2007


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