EANS-News: Sunways AG: Botched energy turnaround affects consumers and solar companies (with photo)

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Annual & Special Corporate Meetings/Company Information/Earnings
Forecast

Subtitle: · CEO Michael Wilhelm: people’s trust was gambled away ·
Despite a massive price decline, Sunways AG increased second quarter
sales and sales volumes against the first quarter 2011 · In view of
an increasing market volatility, no reliable prognosis for 2011 is
possible at present · Shareholders approved all motions of the
Management Board and Supervisory Board at the general meeting

Konstanz (euro adhoc) - 16 June 2011 - "The Federal Government
completely botched the energy turnaround", said Michael Wilhelm,
Chairman of the Management Board of Sunways AG (SWW:GR, SWWG.DE, ISIN
DE0007332207), at the company´s annual general meeting held today in
Singen/Hohentwiel. "Instead of increasingly subsidizing renewable
energies in Germany in a balanced manner, and thus in particular
solar energy as a decentralized form of energy, the government gave
absolute priority to network expansion - which is a severe mistake",
explained Wilhelm. Full network capacity utilization mainly benefits
utility companies. Furthermore, the disposal expenses relating to
shut down nuclear power plants have to be borne by taxpayers - not by
the utility companies. "A lot of consumer goodwill was thoughtlessly
gambled away by reducing subsidies for private consumption", declared
the company´s CEO. "Obviously, politicians fail to understand the
importance of such subsidies to the development of sustainable energy
storage and management systems."

Against the background of growing consolidation pressures on the
German photocvoltaics industry, Wilhelm said: "Although there are
first signs that the reduction of solar subsidies already announced
for 1 July 2011 may not occur after all, unfortunately only the word
"solar phase-out" comes to mind when looking at the massive PV
subsidy cuts already implemented by the Federal Government".
According to Wilhelm, German manufacturers of solar components are
facing severe competitive disadvantages compared to local competitors
as a result of the politically motivated, steadily continuing
investment incentive policy in China.

Compared to the first quarter 2011, Sunways was able to improve its
sales and sales volumes in the second quarter. With respect to two
out of three segments of the company - Solar Modules and Solar
Inverters - the Management Board is optimistic that sales at the
level of the prior year quarter can be achieved by the end of the
second quarter (as of 30 June 2011). "In view of a massive price
decline in these two segments, this would constitute a strong
performance which will only be possible on the basis of a significant
increase in sales volumes", said Wilhelm. In the solar cell segment,
sales in the second quarter 2011 are expected to decrease against the
corresponding prior year quarter. "This will, however, be largely due
to the modification of our business model, i.e. the solar module
production cooperation with LDK Solar, which will have a positive
impact on sales and earnings of Sunways AG in the medium term",
explained the CEO.

Sunways AG anticipates that, due to the weak demand in the market and
the pressure on margins, earnings before taxes (EBIT) will record a
loss in the single-digit million range in the second quarter 2011.
This loss is, however, expected to be offset by the inflow of cash
resulting from the second purchase price portion for MHH Solartechnik
(earn-out) reflected in after-tax earnings. MHH Solartechnik was sold
to BayWa AG in 2009. In view of steadily deteriorating political and
economic framework conditions, the Management Board is currently of
the opinion that no reliable prognosis can be given for the full
fiscal year.

On the occasion of the annual general meeting, the shareholders
approved all motions submitted by the Management Board and
Supervisory Board. The following resolutions were passed: · The
financial statements and consolidated financial statements were
approved. · Retained earnings of EUR 17.8 million for the fiscal year
2010 were brought forward to new account. · Conditional capital of up
to EUR 4.357 million was cancelled. · PricewaterhouseCoopers were
appointed as auditors. · The actions of the Management Board and
Supervisory Board of Sunways AG were formally approved.

This press release and pictures are also available on
www.sunways.eu/en and www.presseportal.de/pm/57666/sunways_ag.

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 2010, Sunways AG with about 340 employees realised
sales of around EUR 220 million. The shares of Sunways AG are listed
at the Frankfurt Stock Exchange (SWW:GR, SWWG.DE, ISIN DE0007332207).
For further information, please visit www.sunways.eu/en.

Pictures with Announcement:
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http://resources.euroadhoc.com/us/yuzZn89R

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

end of announcement euro adhoc
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Pictures with Announcement:
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http://resources.euroadhoc.com/us/yuzZn89R

company: Sunways AG
Macairestr. 3 - 5
D-78467 Konstanz
phone: +49 (0)7531 99677 0
FAX: +49 (0)7531 99677 10
mail: info@sunways.de
WWW: http://www.sunways.de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English