| Solaria

Madrid, 16November 2011. 

Solaria Energía y Medio Ambiente, the only Spanish solar company listed in the stock market, has released its financial results for the third quarter of 2011. During the first nine months of 2011, sales figures are over € 94 million, achieving € 9.3 million Ebitda. On the other hand, Ebit stands at € 3.7 million, this being 28% higher compared to the corresponding period of 2010, while the net positive result is € 1 million.

Per division, sales mix during the third quarter of 2011 was 44% in photovoltaic modules, 33% in Turnkey projects, 22% in Power Generation and 1% in Operations and Maintenance.

Sales of PV modules amount € 41.1 million, representing a growth of 60% over accumulated figure of first semester of 2011, thanks to strategic agreements signed in United Kingdom and France during this third quarter, as well as the consolidation of the entry strategy into markets such as Germany, that together with Italian and Spanish markets represents the major markets for this business line.

The most significant increase in sales remains in the Power Generation business line that amounted € 21.2 million, representing a growth of 91% over the same period of 2010. Furthermore, this business unit continues acquiring more weight in the sales mix, reaching 22% of the total sales. Solaria bets for this solid business line continuing its strategy of investing  in new projects to increase its company`s projects portfolio.

This way, Solaria consolidates its position as a leading company in the national and international solar energy market, reinforcing its strategy of geographical diversification, investing in markets with stable regulatory frameworks and a solid financial situation, enabling Solaria to reduce risks and obtain revenues in a dynamic market such as the photovoltaic.

During the third quarter of 2011, Solaria has signed strategic agreements in the major European markets, which include the agreements signed in the UK and France. In the UK, Solaria reached an agreement to provide photovoltaic Kits which will be installed in more than 500 rooftops in the county of Northumbria. In France, with Akorsol company, Solaria has provided the supply of photovoltaic modules for an integration project for a greenhouse rooftop, with an area of more than 40,000 square meters, which will become one of the largest facilities of this type in France.

In the frame of its ongoing expansion strategy in key markets, Solaria signed in September 2011 an agreement with Chinese utility company Dongfang Electric Corporation (DEC), that allows Solaria the entry into the Chinese market, establishing the baseline for new business opportunities in Asia, where both companies will co-invest worldwide with a target pipeline of 100 MW per year.

In addition, Solaria continues betting for the technological innovation in its R & D center located in its Puertollano facilities, with the objective of achieving cost efficiencies and the possibility to offer its customers a wide product portfolio with the highest European quality. Solaria follows a strict policy of cost reduction, which has helped to reduce the operating costs of the company, with a decrease of approximately 7%.This figure is more relevant if we consider the growth in the number of subsidiaries and operating plants in comparison with the first quarter of 2010.

4Q 2011 Forecasts

Solaria has set as main goals to consolidate, optimize and capitalize the company's position along the value chain of solar photovoltaic energy. For this, the company will perform a strong development of turnkey projects of solar power plants, participating in the whole management process, from licensing to the implementation of solar plants, also performing the Operation and Maintenance of third party and Solaria owned plants.The company continues to expand its product portfolio and services to offer its customers the greatest added value with the highest European quality. All this, continuing with  its expansion strategy into international markets and increasing its market share in those where the company is already present: Latin America, Israel, UK, France, Italy, Germany and Spain.