Conergy First Half Revenues Reach EUR 418M

Conergy AG increased half-year revenues by 70.6 percent to EUR 418 million (previous year: EUR 245 million). This is the first time that foreign sales, which more than tripled year-on-year from EUR 60.5 million to EUR 223.6 million, have exceeded revenues in Germany, which also gained slightly. Conergy already offers its systems for utilizing solar, wind and bioenergy in 26 countries via three brand worlds focused on end customers, the trade and investors.

The photovoltaics grew by 80.3 percent and remains the Group’s core business and growth engine. Revenues in the other technologies increased by 36.8 percent.

Earnings before interest and taxes (EBIT) improved from -EUR 6.1 million in the first quarter to EUR 13.6 million in the second quarter of 2007 in tandem with the growth of our revenues as the year progresses. The gross profit margin rose from 16.8 percent in the prior-year period to 21.1 percent in the first half year of 2007, already offsetting at the half-year mark the first quarter’s traditionally negative consolidated net income (-EUR 4.9 million). Consolidated net income after interest and taxes was EUR 1.5 million for the first six months of the year.

Any analysis of our quarterly results must consider the seasonal nature of the system construction business. Because construction on many large projects is launched in the spring, Conergy usually generates about 50% of its revenues in the fourth quarter.

Orders on hand surpassed the billion euros mark for the first time ever at 30 June 2007, rising to EUR 1.238 billion. Almost all of these orders are scheduled to be executed within the next 18 months. Sixty two percent of these orders are from abroad, where Korea and the United States currently are the markets with the highest growth.

The measures that Conergy initiated with the aim of optimizing working capital have already resulted in an improvement of working capital by EUR 83 million, surpassing the Company’s own target of EUR 70 million. Conergy posted positive net cash flow of EUR 44 million in spite of investments of EUR 37.4 million in the second quarter and expects this positive trend to continue.

Equity of EUR 326 million and a syndicated credit line of EUR 600 million provide the Conergy Group with a solid basis for financing its planned growth in years to come.