| Solaria

Madrid, 31 August 2011. – Solaria Energía y Medio Ambiente, the only Spanish solar company listed in the stock market, has released its financial results for the first semester of 2011. After this period, Solaria reported very strong figures that show the viability of the photovoltaic market, and also present a positive picture for the rest of the year. During the first six months of 2011, sales figures are over € 51,6 million,  achieving a net positive result  that increased by 18% compared to the same period in 2010 and confirms the good prospects and the soundness of Solaria in the photovoltaic market.

According to the balance sheet figures, Solaria registered € 4,1 million Ebitda. On the other hand, Ebit stands at € 240 thousand while the net result is € 516 thousand, this being 18% higher compared to the corresponding period of 2010.

These positive figures have been achieved thanks to Solaria´s commitment to its Power Generation business at international level through their owned plants with a total capacity installed of 52MW in 5 countries guaranteeing recurring revenues.  Customer loyalty in the module sales area, as well as the implementation of strict controls and costs reduction policies have also contributed to this successful outcome, despite the continuous growth of the Company’s business, both in number of international subsidiaries and photovoltaic plants in operation.

Sales of PV modules is still the business unit with more presence in the sales mix of Solaria, representing the 50% of company revenues, approximately.

The sales in this area amounted to  €25.7 million. These figures are expected to increase in the second half of the year thanks to the strategic agreements signed in Italy, Greece and UK, as well as the consolidation of the entry strategy into new markets such as Israel and Brazil, which will give the company a greater global presence.

The most significant increase in sales remains in the Power Generation business unit. Its sales in June 31 amounted to 12.4 million euros, representing a growth of 82% over the same period of 2010.Furthermore, this business unit acquired more weight in the mix of sales, moving  from 11% in the first semester of 2010 to 24% over the same period of 2011. These remarkable increase is expected to continue rising in the second semester due to the implementation of different projects in the company´s portfolio.

With regard to the geographical distribution of photovoltaic modules sales, Spain and Italy are currently the main markets for Solaria although the company continues its expansion process with a growing presence in international markets.

Territorial diversification in terms of the business unit Power Generation is quite remarkable, with excellent results in Spain, Italy, Czech Republic and Germany, which allows for risk diversification as well as obtaining recurring incomes supported by sound and reliable regulatory frameworks.

Solaria continue betting for the technological innovation and quality to maintain its industry leadership and its policy of cost reduction. Thanks to this bet, Solaria carried out a technological update with the latest technological developments of its production line of high efficiency solar cells in the first semester of 2011. This will represent a reduction in costs of 8%, as well as an efficiency increase in the final product. It also extended from 5 to 10 years the guarantee on manufacturing defects and materials of their products.

The company is at a development and expansion stage in order to achieve its strategic objectives of positioning itself as a leading company in the national and international solar energy market. The main objective of the company is to continue with its strategy of geographical diversification, consolidating its presence in international markets such as United Kingdom, Israel and Brazil, where Solaria has already signed major trade agreements. In addition, the company will continue betting for its Power Generation business line, investing in markets with stable regulatory frameworks and a sound financial situation, enabling Solaria to reduce risks and obtain revenues in a dynamic market such as the photovoltaic. All this, maintaining  its commitment to quality and investment in R&D+i in order to fulfill the customer’s needs and markets where Solaria is present.