• 49% share in new 100 MWp cell manufacturing facility for CENTROSOLAR
• Silicon supply fully secured
• CENTROSOLAR covers 25% of its total module manufacturing capacity with this cell supply
• Flexible multi sourcing strategy maintained
• Foundation laid for accelerated growth

CENTROSOLAR Group AG and Qimonda AG have entered into a venture for the production of crystalline solar cells. The production plant will be established near Porto (Portugal) next to the existing semiconductor factory of Qimonda. Initially, the production plant will have a capacity of approx. 100 MWp by the end of 2009 and will provide jobs for roughly 150 employees. The sourcing of multi-crystalline silicon wafers has been secured for this first stage of the venture.

The venture company will invest approx. EUR 70 million until September 2009. Approximately 70% of the financing is expected to be provided by local banks. In addition, the partners plan to apply for a funding package provided by Portuguese state authorities in accordance with European funding regulations, for which the first indications appear to be advantageous. CENTROSOLAR accounts for 49% of the equity of the venture company and will thus receive 49% of the production output. CENTROSOLAR refinances its equity share by a 10% capital increase via a private placement. The placement is backed by a guarantee from a major shareholder. Qimonda is investing 51% and will market its corresponding share of the production output.

This source of crystalline solar cells covers 25% (approx. 50 MWp) of CENTROSOLAR’s annual module production capacity (195 MWp in 2010) at much more favourable terms than comparable long-term contracts from cell manufacturers. While securing the base load for the company’s growing project business, CENTROSOLAR remains flexible in its cell sourcing strategy for its integrated solar systems business for private homes. CENTROSOLAR thus will expand its business with its existing cell suppliers, and also plans further expansions of the venture company to feed its accelerated growth in the future.

The venture company will use the crystalline silicon technology leveraging the in-depth expertise of Qimonda in all relevant processing steps. After the ramp up phase, the solar cells will provide an electrical efficiency of more than 16%. The improvement of cell efficiency will become the key lever to reduce total system costs. With its strong R&D backbone, and its comprehensive experience in high-quality and cost-efficient mass production, Qimonda is in a very competitive position to drive and implement efficiency improvements faster than traditional cell manufacturers.

Qimonda is also leveraging its experience with silicon suppliers as well as the availability of waste silicon from its DRAM operations to set up supply contracts with attractive terms. Silicon supply for the initial capacity has been secured with wafers from LDK. The venture company will receive a total of 540 MWp solar wafers over 5 years from the leading Chinese manufacturer LDK Solar Co. Ltd, whose customers include several global and renowned solar cell manufacturers. The signed agreement furthermore allows LDK to receive scrap silicon material from Qimonda's chip production operations. The prices are initially fixed for each year, but do incorporate a flexible component to reflect the general market price trend from 2011 onwards.

CENTROSOLAR contributes its experience in the PV industry including expertise not only in module and system application, but also in solar cell production. Both partners are committed to make the venture company one of the industry’s cost and performance leaders.

The manufacturing venture company will be accounted for “at equity” within the CENTROSOLAR Group accounts. Since CENTROSOLAR has the right to purchase its allocation of cells on a “cost plus” basis, CENTROSOLAR will be able to purchase significantly below the price levels of the typical long-term supply contracts offered in the industry.

Further information from the issuer

CENTROSOLAR Group AG, a leading European manufacturer of photovoltaic systems, and Qimonda AG, one of the world's leading producers of memory chips, have today signed a joint venture agreement to erect, equip and operate a solar cell production plant. The two venture partners are ideally matched:

CENTROSOLAR Group AG CENTROSOLAR is able to offer specific expertise in solar applications and has access to the internationally expanding photovoltaics market. Dr. Alexander Kirsch, Management Board Chairman of CENTROSOLAR Group AG, remarked: "This move is an innovative and the economically most promising way to develop our cell supply strategy. With Qimonda as our technology partner, the new manufacturing venture will be able to become a top tier solar cell manufacturer. It is a significant step for CENTROSOLAR to maintain its position as one of the fastest growing solar module manufacturers and system integrators."

Qimonda AG Qimonda will utilize its silicon based technology and production expertise that it has acquired in the technologically leading semiconductor memory industry, and leverages its long standing relationship to silicon and equipment suppliers. “By entering the solar industry, we are addressing an attractive market with stable and high growth rates. We will leverage our core competencies in silicon-based, high-quality mass production to generate a new revenue stream for Qimonda,” said Kin Wah Loh, President and Chief Executive Officer of Qimonda AG. “Together with our experienced solar partner CENTROSOLAR we have developed a capital and resource efficient setup to start this promising new business.”

About CENTROSOLAR Group

CENTROSOLAR Group AG (ISIN DE0005148506) is among Europe's leading manufacturers of roof-top photovoltaic (PV) systems, with some 500 employees and revenues of Euro 220 million in 2007 (2008e: Euro 310 million). Its product range comprises integrated PV systems, modules, mounting systems and solar glass. CENTROSOLAR has PV module production plants in Wismar (Germany) (capacity 2008e: 85 MWp and 2009e: 165 MWp) and Doesburg (the Netherlands) (2008e: 40 MWp) and a solar glass plant in Fürth (Germany) (2008e: 5 million square metres). The company has sales offices in Germany, Spain, France, Italy, Greece, Switzerland, the Netherlands and the USA. In 2007, CENTROSOLAR generated 30 percent of its revenues outside of Germany. This rate is expected to increase to approximately 60 percent in 2008.

About Qimonda

Qimonda AG (NYSE: QI) is a leading global memory supplier with a broad diversified DRAM product portfolio. The company generated net sales of Euro 3.61 billion in financial year 2007 and had approximately 13,500 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates six major R&D facilities. The company provides DRAM products for a wide variety of applications, including in the computing, infrastructure, graphics, mobile and consumer areas, using its power saving technologies and designs. Further information is available at www.qimonda.com.

Nombre de la organización: CENTROSOLAR Group AG
Persona a contactar: Dr. Alexander Kirsch
Teléfono: +49 (0) 89 201 80 0
Ciudad: München
País: Germany
Web: http://www.centrosolar.com