EANS-News: Sunways AG / Sunways AG: Profitable growth continues

· 19.6 % rise in sales in the second quarter compared to the prior
year
· EBIT margin improved to 7.7 %
· Sales volumes reached new
record levels across all segments

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Company Information/Earnings Forecast/6-month report

Subtitle: · 19.6 % rise in sales in the second quarter compared to
the prior year · EBIT margin improved to 7.7 % · Sales volumes
reached new record levels across all segments

Konstanz (euro adhoc) - Konstanz, 13 August 2010 - In the second
quarter 2010, Sunways AG (FWB: SWW; ISIN DE0007332207) consistently
remained on its growth path: sales rose by 19.6 % against the second
quarter of the prior year to EUR 64.6 million (Q2/2009: EUR 54.0
million). The operating result (EBIT) in the quarter grew markedly to
EUR 5.0 million (Q2/2009: EUR -0.3 million). Consolidated net income
reached EUR 3.5 million (Q2/2009: EUR 0.1 million). Due to the strong
demand for Sunways products, sales volumes in the quarter reached new
historical record levels in all three product segments - solar cells,
solar modules and solar inverters. Solar inverters proved to be an
essential asset to the product portfolio; thanks to the strong
demand, all inverters held in stock were sold off in the second
quarter 2010.

In the first six months of the year 2010, consolidated sales reached
EUR 108.9 million and thus increased by 30.9 % against the sales
figure for the relevant prior year period (H1/2009: EUR 83,2
million). The operating result (EBIT) increased from EUR -5.5 million
for the period from January through June 2009 to EUR 9.7 million in
the corresponding 2010 period. Consolidated net income in the first
half-year 2010 grew to EUR 5.6 million - an increase by EUR 9.8
million against the comparable prior year period (H1/2009: EUR -4.2
million).

Solar cells: significant improvement in profitability Sales in the
solar cell segment in the second quarter 2010 amounted to EUR 31.1
million and thus declined by 14.3 % against sales in the second
quarter of the previous year (Q2/2009: EUR 36.3 million); on the
other hand, the operating income (EBIT) rose markedly from EUR 2.7
million in the second quarter 2009 to EUR 4.2 million for the period
from April through June 2010. Thus the segment EBIT margin improved
by 6 percentage points against the prior year to 13.5 %. The volume
of cells sold in the second quarter 2010, at 30.7 megawatts peak,
reached a new record level and increased by 35.4 % against the figure
for the corresponding prior year period. This high sales volume was
partially due to a major contract manufacturing order from a Chinese
customer. Thus the capacity utilization rate for solar cells at both
production plants was 95 %.

Significant growth with solar modules and solar inverters The
positive development in the solar module and solar inverter business
continued also in the second quarter 2010. The overall increase in
demand for Sunways products in the first half-year was partly due to
pull-forward effects in connection with the announced reduction of
feed-in tariffs. Investments, which had been postponed in the wake of
the financial and economic crisis, were however made simultaneously.

Solar modules: basis established for reaching 2010 sales volume
targets Module sales in the second quarter 2010 doubled to EUR 29.7
million (Q2/2009: EUR 14.6 million). The operating result (EBIT) for
the months from April through June 2010 reached EUR 0.7 million and
thus significantly exceeded the relevant figure for the prior year
quarter (Q2/2009: EUR -1.3 million). The module sales volume in the
same period increased from 5.9 megawatts peak to 16.1 megawatts peak.
In all, solar modules with a capacity of 26.1 megawatts peak have
been sold since the beginning of 2010. Thus Sunways AG is well on its
way to doubling its module sales in the current fiscal year against
the prior year as planned. Solar modules with a total capacity of
25.3 megawatts peak were sold in the fiscal year 2009.

Solar inverters: a steadily growing revenue and earnings driver Sales
in the solar inverters segment in the second quarter 2010 amounted to
EUR 9.8 million and thus more than tripled against the prior year
period (Q2/2009: EUR 3.1 million). Sales volumes rose accordingly:
while devices with a total capacity of 12.0 megawatts peak had been
sold in the second quarter 2009, the sales volume in the
corresponding 2010 period amounted to 39.3 megawatts peak. The
operating result (EBIT) turned positive from EUR -1.7 million in the
second quarter 2009 to reach EUR 0.1 million in the quarter under
review. Despite the product segment´s significant growth, the demand
for inverters was again not met in full in the second quarter 2010
due to the continuing global shortage of individual inverter
components.

Outlook for the entire fiscal year 2010 Sunways AG is satisfied with
the business development in the first six months of 2010. Following a
good start to the year in the first quarter, the Company was able to
sustain the positive business development during the period from
April through June. All three product segments - solar cells, solar
modules and solar inverters - are experiencing profitable growth.

Economic research institutes anticipate a potential decline in global
economic growth in the second half-year. The inverter component
supply situation remains tense. Following the adoption of the
unscheduled reduction of feed-in tariffs in Germany (in two stages as
of 1 July and 1 October 2010), Sunways AG expects that demand for its
products will continue to be strong in its largest market in the
second half of the year. The development of margins during the
remainder of the year will largely depend on price movements - on the
selling as well as on the procurement side. On the procurement side,
prices for raw materials continue to be high, e.g. wafer prices in
the spot market have risen by about 40 % since the beginning of 2010
- due to increased demand as well as due to the negative development
of the exchange rate of the Euro against the U.S. dollar. From
today´s point of view, only moderate price movements are to be
anticipated here in the second half-year. On the selling side,
Sunways expects market prices to decline in part as a result of the
various reductions of feed-in tariffs in the second half-year.

Against this background, Michael Wilhelm, Chairman of the Management
Board of Sunways AG, commented on further prospects: "Our core
business is experiencing a stable development. We anticipate that
demand will continue to be strong for our products, not only in the
domestic market but increasingly also in the international markets,
in the second half of the year. We have a substantial order backlog
in all product segments. From today´s point of view, we expect that
sales in the fiscal year 2010 will rise to reach more than EUR 200
million with an EBIT margin of about 6 %."

Q2/2010 key figures Group Sales: EUR 64.6 million (Q2/2009: EUR 54.0
million; +19.6 %) EBITDA: EUR 6.6 million (Q2/2009: EUR 1.2 million)
Depreciation and amortization: EUR 1.6 million (Q2/2009: EUR 1.5
million) EBIT: EUR 5.0 million (Q2/2009: EUR -0.3 million)
Consolidated net income: EUR 3.5 million (Q2/2009: EUR 0.1 million)
Earnings per share: EUR 0.30 (Q2/2009: EUR 0.01) Number of employees
(30 June 2010): 318 (30 June 2009: 324) Solar cell segment Sales: EUR
31.1 million (Q2/2009: EUR 36.3 million; -14.3 %) EBIT: EUR 4.2
million (Q2/2009: EUR 2.7 million) Solar cell sales volume: 30.7 MWp
(Q2/2009: 22.5 MWp) Solar module segment Sales: EUR 29.7 million
(Q2/2009: EUR 14.6 million; +103.4 %) EBIT: EUR 0.7 million (Q2/2009:
EUR -1.3 million) Solar module sales volume: 16.1 MWp (Q2/2009: 5.9
MWp) Solar inverter segment Sales: EUR 9.8 million (Q2/2009: EUR 3.1
million; +216.1 %) EBIT: EUR 0.1 million (Q2/2009: EUR -1.7 million)
Solar inverter sales volume: 39.3 MWp (Q2/2009: 12.0 MWp)

H1/2010 key figures Group Sales: EUR 108.9 million (H1/2009: EUR 83.2
million; +30.9 %) EBITDA: EUR 12.8 million (H1/2009: EUR -2.9
million) Depreciation and amortization: EUR 3.1 million (H1/2009: EUR
2.6 million) EBIT: EUR 9.7 million (H1/2009: EUR -5.5 million)
Consolidated net income: EUR 5.6 million (H1/2009: EUR -4.2 million)
Earnings per share: EUR 0.48 EUR (H1/2009: EUR -0.36) Solar cell
segment Sales: EUR 52.9 million (H1/2009: EUR 55.2 million; -4.2 %)
EBIT: EUR 7.0 million (H1/2009: EUR 0.1 million) Solar cell sales
volume: 48.5 MWp (H1/2009: 32.9 MWp) Solar module segment Sales: EUR
48.4 million (H1/2009: EUR 22.5 million; +115.1 %) EBIT: EUR 1.5
million (H1/2009: EUR -2.8 million) Solar module sales: 26.1 MWp
(H1/2009: 8.8 MWp) Solar inverter segment Sales: EUR 18.9 million
(H1/2009: EUR 5.5 million; +243.6 %) EBIT: EUR 1.2 million (H1/2009:
EUR -2.8 million) Solar inverters sales volume: 77.0 MWp (H1/2009:
21.5 MWp)

Financial calendar 2010
12 November 2010 - interim report as of 30 September 2010

This press release together with pictures is also available on
www.sunways.eu/en.

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/en.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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 7531 996 77-415

E-Mail: communications@sunways.de

Branche: Alternative energy
ISIN: DE0007332207
WKN: 733220
Index: CDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade