EANS-News: Sunways AG / Marked increase in sales and earnings in the first quarter 2010

- Sales raised by 52 %

- EBIT increased by € 10 million to € 4.7 million

- International business grows palpably

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Company Information/3-month report

Subtitle: - Sales raised by 52 %
- EBIT increased by € 10 million to € 4.7 million
- International business grows palpably

Konstanz (euro adhoc) - Konstanz, 12 May 2010 -Sunways AG (FWB: SWW;
ISIN DE0007332207) closed the first quarter 2010 with a marked rise
in sales revenues, sales volumes and earnings. Against the background
of a continuously strong demand for photovoltaic systems in Germany
and in the international markets, sales rose by 51.7 % to EUR 44.3
million (Q1/2009: EUR 29.2 million). All business segments (solar
cells, solar modules and solar inverters) contributed to this sales
growth. The operating result (EBIT) increased by EUR 10 million to
EUR 4.7 million (Q1/2009: EUR -5.3 million). In the context of the
settlement of the closing balance sheet relating to the sale of MHH
Solartechnik GmbH, a provision was recorded for an adjustment amount
of EUR -1.1 million with respect to discontinued operations.
Therefore, consolidated net income in the first quarter 2010
amounted to EUR 2.1 million (Q1/2009: EUR -4.3 million).

International business: overproportionate growth in Italy In the
first quarter 2010, Sunways AG generated 84.1 % of its consolidated
sales in Germany. Compared to the first three months of 2009, sales
in other European countries experienced a very positive development
across all products: revenues increased from EUR 2.2 million in the
first quarter 2009 to EUR 7.1 million in the first quarter 2010; at
15.9 %, the percentage share in consolidated sales more than doubled.
Growth in Italy was especially remarkable: sales rose from EUR 0.4
million in the first quarter 2009 to EUR 3.1 million in the first
quarter 2010.

Reporting: subdivided into three segments as from 2010 As from the
beginning of 2010, Sunways AG subdivided its former solar systems
segment into two product divisions for reporting purposes: solar
modules and solar inverters. In the future, business developments
will be presented separately for all three segments: solar cells
(development, production and distribution of solar cells), solar
modules (distribution of solar modules and projects) as well as solar
inverters (development, production and distribution of inverters).
Segment results for the first quarter 2009 were adjusted accordingly
to ensure comparability.

Solar cells: significant increase in profitability Sales in the solar
cell segment rose by 14.2 % to EUR 21.7 million (Q1/2009: EUR 19.0
million) in the first quarter 2010. Such sales include intercompany
sales with the solar module segment amounting to EUR 5.2 million.
Solar cells for the production of the Company´s own modules are
accounted for at prices customary in the market. The segment´s
operating result (EBIT) at EUR 2.8 million exceeded the figure for
the prior year quarter (Q1/2009: -EUR 2.7 million) by EUR 5.5 million
- corresponding to an EBIT margin of 12.9 %. This turnaround was
largely due to the cost of materials ratio, which improved against
the prior year, as well as economies of scale resulting from
increased production capacities in Arnstadt.

Solar modules: business successfully expanded Thanks to additional
supply capacities, Sunways AG more than tripled its sales volume of
solar modules in the first quarter 2010 to 10 MWp (Q1/2009: 2.9 MWp).
Segment sales at EUR 18.7 million thus markedly exceeded the prior
year level (Q1/2009: EUR 7.9 million). Approx. 24 % of such sales
were generated in other European countries. The development in the
Italian market was particularly successful: sales revenues rose from
EUR 0.3 million in the first quarter 2009 to EUR 2.5 million in the
first quarter 2010. The segment´s operating result (EBIT) increased
by EUR 2.2 million to EUR 0.8 million (Q1/2009: EUR -1.4 million).

Solar inverters: demand exceeds supply In the first quarter 2010,
sales in the solar inverter segment almost quadrupled to EUR 9.1
million (Q1/2009: EUR 2.4 million). Sales revenues in all relevant
European photovoltaics markets increased significantly; the
international percentage amounted to approx. 21 %. Sales volumes also
rose against the prior year to 37.7 MWp (Q1/2009: 9.5 MWp). An even
stronger growth in volumes and revenues was prevented by the limited
availability of important electronic components in the world market
over the last few months. The segment´s operating result (EBIT)
reached EUR 1.1 million (Q1/2009: EUR -1.2 million). Thanks to the
continuously strong demand and the very limited supply of inverters,
Sunways AG has now already received orders for inverters stretching
well into the second half of the year.

Outlook for the entire fiscal year 2010 Due to the further reduction
of feed-in tariffs in Germany as from July this year, domestic demand
is expected to remain strong in the current second quarter. At the
same time, we observe a marked recovery in our international markets.
Therefore, Sunways AG does not expect any severe drop in sales in the
third quarter 2010. These expectations are also supported by the
order backlog in the area of solar inverters which stretches well
into the second half of the year. Price pressures with respect to
photovoltaic components and in particular solar cells will, however,
continue to prevail in 2010.

Based on markedly increased volumes against the prior year period in
all product divisions, competitive cost structures as well as further
intensified domestic and international distribution activities,
Sunways AG expects its profitable consolidated growth to continue in
the current fiscal year. "We aim to double our module sales against
the prior year with the aid of additional supply capacities. In
addition, we will consider all operational and strategic options to
further accelerate the growth of Sunways AG. An important goal will
again be to diversify our sales markets and to strengthen our product
and service range", said Michael Wilhelm, Chairman of the Management
Board of Sunways AG.

Major key figures Q1/2010

Group Sales revenues: EUR 44.3 million (Q1/2009: EUR 29.2 million; +
51.7 %) EBITDA: EUR 6.2 million (Q1/2009: EUR -4.2 million)
Depreciation and amortization: EUR 1.5 million (Q1/2009: EUR 1.1
million) EBIT: EUR 4.7 million (Q1/2009: EUR -5.3 million)
Consolidated net income: EUR 2.1 million (Q1/2009: EUR -4.3 million)
Earnings per share: EUR 0.18 (Q1/2009: EUR -0.37) Employees (31 March
2010): 313 (31 March 2009: 315)

Solar cell segment Sales revenues: EUR 21.7 million (Q1/2009: EUR
19.0 million; + 14.2 %) EBIT: EUR 2.8 million (Q1/2009: EUR -2.7
million) Solar cell sales volume: 17.8 MWp (Q1/2009: 10.4 MWp)

Solar module segment
Sales revenues: EUR 18.7 million (Q1/2009: EUR 7.9 million; +136.7 %)
EBIT: EUR 0.8 million (Q1/2009: EUR -1.4 million)
Solar module sales volume: 10.0 MWp (Q1/2009: 2.9 MWp)

Solar inverter segment
Sales revenues: EUR 9.1 million (Q1/2009: EUR 2.4 million; + 279.2 %)
EBIT: EUR 1.1 million (Q1/2009: EUR -1.2 million)
Solar inverter sales volume: 37.7 MWp (Q1/2009: 9.5 MWp)

2010 financial calendar
17 June 2010 - Annual general meeting
13 August 2010 - Interim report as of 30 June 2010
12 November 2010 - Interim report as of 30 September 2010

This press release is also available on www.sunways.eu/de
(see also http://www.presseportal.de/pm/57666/?keygroup=bild).

Forward-looking statements This press release contains statements
relating to the future business development of Sunways AG that are
based on management assumptions and estimates made at the time of
publication. Should the assumptions underlying the prognoses fail to
be fulfilled, actual events may vary substantially from
forward-looking statements. Uncertainties include changes in the
political, legal, economic and business environment, exchange and
interest rate fluctuations as well as the behaviour of competitors
and other market participants. Sunways does not intend and is not
under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances
prevailing as of the date of publication.

About Sunways Sunways AG, Konstanz/Germany, stands for consistent use
of solar energy to secure long-term energy supply of man in an
efficient and sustainable manner. Sunways offers technological
competence, performance and highest quality - from single components
to complete solar systems.Since its foundation in 1993, Sunways AG
evolved into a technology leader in the photovoltaics industry
serving international markets. With silicon-based solar cells,
inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation.
With photovoltaic solutions tailored to customers´ needs (transparent
and coloured solar cells, building- integrated photovoltaic
installations), Sunways turns exceptional ideas into reality.Sunways
Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and
Bologna/Italy. In 2009, Sunways AG with about 320 employees realised
sales of about EUR 180 million.The shares of Sunways AG are listed at
the Frankfurt Stock Exchange (SWW, ISIN DE0007332207). For further
information, please visit www.sunways.eu/de.

end of announcement euro adhoc
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ots Originaltext: Sunways AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Harald F. Schaefer

Head of Corporate Communications & Investor Relations

Tel.: +49 (0)7531 996 77-415

E-Mail: communications@sunways.de

Branche: Alternative energy
ISIN: DE0007332207
WKN: 733220
Index: CDAX, Prime All Share, Technology All Share
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