Evergreen Solar Announces $125 Million Distribution Agreement With Donauer Solartechnik; Raises Evergreen Solar's Recent Contract Awards to More Than $380 Million Over the Next Four Years
MARLBORO, Mass.--(BUSINESS WIRE)--March 15, 2006--Evergreen Solar, Inc. (Nasdaq: ESLR), a manufacturer of solar power products with its proprietary, low-cost String Ribbon(TM) wafer technology, today announced that it has entered into a multi-year supply contract with Donauer Solartechnik, a German-based solar power distributor. The agreement calls for Evergreen Solar to ship approximately $125 million of photovoltaic modules to Donauer over the next four years, based on current exchange rates.
"Donauer has been an outstanding distribution partner for Evergreen Solar for several years, and we look forward to our expanded relationship," said Richard M. Feldt, Evergreen Solar's president and chief executive officer. "With more than $100 million in 2005 sales and well over 1,000 customers, Donauer is one of the fastest growing distributors in Europe. They have built an outstanding reputation in the industry, successfully serving the residential and small commercial segments by supporting numerous local installers with products and related support services. Working with Donauer, we plan to continue expanding our presence in Germany as well as emerging markets such as Spain, Portugal and Italy."
"Donauer Solar is pleased to have entered into this distribution agreement with Evergreen Solar. This provides us with a higher volume of modules to enable our expansion efforts throughout Europe and increase our sales in Germany as well," said Rudolf Donauer, president of Donauer Solar. "We have already been successfully working with Evergreen Solar for years and are looking forward to our continued cooperation."
The distribution agreement with Donauer is Evergreen Solar's fourth major contract in the past four months and is the largest in Company history. The value of these four contracts totals more than $380 million over the next four years. The products will be manufactured at Evergreen Solar's plant in Massachusetts and at EverQ's new 30-megawatt facility in Thalheim, Germany. EverQ is a strategic partnership between Evergreen Solar, Q-Cells AG of Germany and Renewable Energy Corporation ASA (REC) of Norway.
About Donauer Solartechnik
Donauer Solar is a leading German wholesaler of solar energy products and offers the entire range of system components, systems packages, engineering, project planning and technical support to dealers, resellers and installers. The company is growing rapidly and is expanding its business beyond Germany into southern European countries such as Spain, Portugal and Italy.
Donauer Solar specializes in designing and compiling the most advanced and reliable solar electric power systems available today for customized grid-connected solutions, off-grid power system packages and fuel cell photovoltaic back-up systems. Also, when it comes to mounting structures and fittings, business partners can benefit from Donauer's extensive know-how with its leading INTERSOL mounting system. Donauer Solar supplies top-quality products that comply with all current standards and regulations (CE, IEC, TUV) and provides full-service solutions ranging from outstanding system design concepts to high-speed delivery all over Europe.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. develops, manufactures and markets solar power products using proprietary, low-cost manufacturing technologies. The Company's patented crystalline silicon technology, known as String Ribbon, uses significantly less silicon than conventional approaches. Evergreen's products provide reliable and environmentally clean electric power for residential and commercial applications globally. For more information about the Company, please visit www.evergreensolar.com.
Evergreen Solar(R) is a registered trademark and String Ribbon(TM) is a trademark of Evergreen Solar, Inc.
A Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. The Company cautions you that any statements contained in this press release which are not strictly historical statements constitute forward-looking statements. Such forward-looking statements include, but are not limited to, those related to the Company's expectations regarding the anticipated benefits of the Donauer Solartechnik relationship; the anticipated size and value of shipments to Donauer Solartechnik; the Company's production plans and plans for the EverQ facility; and the Company's expansion plans, including with respect to certain emerging European markets. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Such risks and uncertainties include, among other things, the following factors: the success of EverQ is subject to numerous risks associated with the development of manufacturing facilities in international markets and depends on many factors that are outside of the Company's control, including the availability of government grants and contributions by Q-Cells and REC; the Company's business and results of operations could be materially impaired as a result of poor manufacturing or product performance or higher costs attributable to the expansion or operation of manufacturing facilities; the market for solar power products is emerging and rapidly developing, and market demand for solar power products such as the Company's products is uncertain; the Company has limited experience manufacturing large volumes of solar power products on a commercial basis at acceptable costs, which it will need to do in order to be successful; the Company faces intense competition from other companies producing solar power and other distributed energy generation products; the risk that the Company may fail to bring to market new products under development or that any such products may not achieve commercial acceptance; the risk that technological changes in the solar industry could render its solar products uncompetitive or obsolete; the Company sells via a small number of reseller partners, and the Company's relationships with current or prospective marketing or strategic partners may be affected by adverse developments in the Company's business, the partner's business, competitive factors, solar power market conditions, or financial market conditions; the market for products such as the Company's solar power products is heavily influenced by federal, state, local and foreign government regulations and policies, as well as the availability and size of government subsidies and economic incentives, over which the Company has little control; and the Company is susceptible to shortages of specialized silicon that the Company uses in the manufacture of its products. In addition to the foregoing factors, the risk factors identified in the Company's filings with the Securities and Exchange Commission - including the Company's Quarterly Report on Form 10-Q filed with the SEC on November 10, 2005 (copies of which may be obtained at the SEC's website at: http://www.sec.gov) - could impact the forward-looking statements contained in this press release. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations, or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
CONTACT: Evergreen Solar, Inc.Donald Muir, 508-357-2221 x7708
Chief Financial Officer
investors@evergreensolar.com
or
Sharon Merrill Associates, Inc.Jason Fredette, 617-542-5300
Vice President
eslr@investorrelations.com
SOURCE: Evergreen Solar, Inc
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