Ad-hoc Release: Phoenix Solar AG: preliminary figures for the financial year 2007

- Record year for sales and EBIT
- Share of international business in sales grows to more than 27 percent

Sulzemoos - Phoenix Solar AG (ISIN DE000A0BVU93), a leading international photovoltaic systems integrator, is releasing the preliminary key data of its consolidated financial statements for the financial year 2007.

In the period from January to December 2007, the Phoenix Solar Group generated sales revenues totalling EUR 260 million (2006: EUR 119 million), which corresponds to an increase of 118 percent. Of this amount, EUR 129 million was attributable to the Components & Systems segment (2006: EUR 62.5 million) and EUR 131 million to the Power Plants segment (2006: EUR 56.4 million). Sales generated abroad came to EUR 70.4 million (2006: EUR 14.2 million), and were thus 396 percent higher. International business rose to 27 percent in 2007, up from 12 percent in the previous year.

Earnings before interest and taxes (EBIT), which advanced to EUR 22.3 million (2006: EUR 4.8 million), are more than four times higher in a year-on-year comparison. The EBIT margin (ratio of EBIT to sales) came to 8.6 percent in the financial year 2007 (2006: 4.0 percent).

In the reporting period, the provisional consolidated profit after tax stood at EUR 14.5 million, up from EUR 3.0 million in 2006, which is an increase of 383 percent. Based on 6,077,000 shares, earnings per share came in at EUR 2.38 which is considerably higher than the previous year’s figures of EUR 0.55.

In the fourth quarter of 2007 alone, the Group increased consolidated sales by 138 percent to EUR 128 million as against the year-earlier figure of EUR 53.7 million. EBIT in the fourth quarter climbed 343 percent to EUR 13.3 million (2006: EUR 3.0 million), which corresponds to an EBIT margin of 10.4 percent.

As per 1 January 2008, orders on hand posted EUR 109 million and were thus approximately ten times higher compared with the previous year’s figure of EUR 11.3 million. Of this amount, around EUR 36 million was accounted for by the Components & Systems segment and EUR 73 million by the Power Plants segment.

In view of the fact that business has been developing well since the start of the year, the Board of Directors will consider adjusting guidance for the financial year 2008 after the quarterly figures as per 31 March 2008 have been released.

The Annual Report containing the complete 2007 consolidated financial statements will be released on 24 April 2008, and can be downloaded from the company website at http://www.phoenixsolar.com under the heading Investor Relations, Financial Reports.


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. The Phoenix Solar Group anticipates sales of significantly more than EUR 300 million, generated in Germany and abroad, for the financial year 2008. 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 160 employees. The shares of Phoenix Solar AG (ISIN DE000A0BVU93) are listed on the official market (Prime Standard) of the Frankfurt Stock Exchange. On 25 March 2008, the shares of the company will be admitted to the TecDAX technology index of Deutsche Börse AG.


Disclaimer

The content of this press release is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss in connection with this press release or the information made available. This also applies particularly to any eventual loss in connection with the shares of Phoenix Solar AG.

This document contains forward-looking statements on future developments which are based on management’s current assessment. Words such as "anticipate", "assume", "believe", "estimate", "expect", "intend", "can/could", "plan", "project", "forecast", "should", and similar terms are indicative of such forward-looking statements. Such statements are subject to certain risks and uncertainties which are mainly outside the sphere of influence of Phoenix Solar AG, but which have an impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor products or technologies of other companies, the development of the planned internationalisation of business activities, fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phoenix Solar AG does not have the intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in time as this is entirely dependent on circumstances prevailing on the day of their release.

In some countries, especially in the United States of America, the dissemination of this press release and the information contained therein may be restricted or prohibited under the law. This press release is therefore expressly not intended for persons resident in the United States of America or any other legal system under which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a breach of the law.


Sulzemoos, 13 March 2008


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Attention editorial offices: For further questions please contact Mrs.
Anka Leiner, Investor Relations Phoenix Solar AG.

Hirschbergstr. 8
D-85254 Sulzemoos
Tel: 08135-938-315
Fax: 08135-938-399
E-mail: a.leiner@phoenixsolar.de
Internet: http://www.phoenixsolar.de

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