Solar Millennium AG - Company Statement

7 juillet 2009

(c)2009, Global Markets Direct.

Overview

Solar Millennium AG Company Statement

A joint statement by Mr. Christian Beltle, the Chairman and the Cheif Executive Officer, Mr. Thomas Meyer, the Chief Financial Officer and Dr. Henner Gladen, the Chief Technology Officer of Solar Millennium AG is given below. The statement has been taken from the company’s 2008 Annual Report.

We made it! In December 2008 Andasol 1, the world’s largest solar power plant, was connected to the grid. With this, we have managed to realize our vision and, together with our partners, carried out an idea that only existed in the heads of a few idealistic founding shareholders just a couple of years ago. With Andasol 1, Solar Millennium underscores its pioneering role in the field of solar-thermal power plants. This is something to be proud of.

The two sister projects Andasol 2 and 3 are under construction in the direct vicinity. While Andasol 2 will be connected to the grid towards the middle of the year, preparations have begun for Andasol 3. A major investor will soon be involved. In 2011, the power plant triad with an overall area of about 6 km2 will convert a total of more than 500 GWh of solar energy into sustainable electricity for up to 600,000 people. In doing so, up to 450,000 tons of carbon dioxide emissions will be saved over conventional coal power plants. Thus, we managed to make the vision come true that we had made our cause 10 years ago when founding the Company.

Against the background of globally rising energy demand in connection with scarcer resources, many decision-makers in politics and business have now realized that electricity from solar energy is one of the most important alternatives to the energy mix so far. The “Solar Plan” that came into being in 2008 under the French EU Council Presidency as part of the new Union for the Mediterranean is one of the best examples. Large-scale solar-thermal plants such as the hybrid power plant in Egypt, which our subsidiary Flagsol is equipping with a solar field, are the first flagship projects for a number of solar power plants that will form a line along the North African states bordering the Mediterranean and cover their own need for energy in addition to supplying Europe. Our experts are being consulted by many of the respective committees, thus making them the architects of a new transnational energy policy from the start.

However, solar energy is also experiencing a renaissance in the US, a country where parabolic trough power plants have reliably been generating electricity in the Californian desert for more than 20 years. At the end of the Bush administration, tax incentives for investment in solar energy, the so-called Investment Tax Credits, were extended for another eight years. Moreover, the state of California recently raised the benchmark for renewable energy generation that is fixed in the Renewable Portfolio Standards from 20% to 33% for 2020. Considering that president Barack Obama has announced massive investment in the establishment of renewable energy supply within the context of his stimulus plan providing for a total of nearly US$ 790 billion overall, it becomes clear why the US is believed to be the next boom market for solar-thermal power plants.

Solar Millennium has an excellent starting position in the US thanks to its involvement there for many years and its own branch in Berkeley, California. We have secured land for approximately 5,000 MW in power plant capacities within these regions, which feature the world’s best solar radiation conditions. Furthermore, Solar Millennium has been short-listed for the realization of approximately six power plants with a total capacity of 1,500 MW by American utilities. We expect to sign contracts for one to two projects with a total capacity of 250 MW to 500 MW as early as this year.

Other countries have likewise become aware of the vast economic and ecologic potential of solar-thermal power plants. In Israel, the United Arab Emirates and Morocco, tenders for solar-thermal power plants can now be made, and the Solar Millennium Group is of course involved. Italy and Greece determined their fixed feed-in tariffs last year. Australia, one of the most attractive regions in the world given its high level of direct normal radiation and its resources of free land, has also opened up to the large-scale solar-thermal power plant market despite its low energy prices.

According to a survey by the German Aerospace Center (DLR), electricity from most renewable energy sources will be cheaper than fossil fuels by 2025. Accordingly, renewable energy will have largely superseded fossil energy sources in the Mediterranean by the middle of this century. In 2050, the survey further reads, the output of solar-thermal power plants will be double the amount of wind, photovoltaics, biomass and geothermal power plants put together.

Consequently, the prospects are outstanding and, with a well-filled project pipeline in Spain and the US as well as the possibility of acquiring additional projects through tenders, our Company is excellently positioned in the expanding market for solar-thermal power plants. Solar Millennium also enjoys a distinguished reputation among suppliers as well as partners and customers as an expert in the planning and realization of top-quality solar-thermal power plants. As a mark of recognition for its contribution to sustainable energy supply, Solar Millennium AG was awarded the internationally-renowned Energy Globe Award in May 2008 in Brussels.

We are looking forward to the next few steps in this exciting growth sector and would like to thank our employees for their enormous commitment as well as our shareholders and investors for the confidence you have bestowed in us along this path.