EANS-Adhoc: Sunways AG / Conclusion of an agreement regarding the early termination of long-term supply contracts with Deutsche Solar GmbH and notice of loss pursuant to Section 92 Para. 1 AktG

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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Contracts

18.07.2012

Konstanz/Germany, 18 July 2012 - Today, the management board of
Sunways AG, Konstanz (ISIN DE0007332207 / WKN 733220), on the basis
of a resolution passed on the same day, entered into an agreement
with Deutsche Solar GmbH regarding the amendment and early
termination of two long-term contracts originally concluded in 2006
and 2007 that provide for the supply of photovoltaic wafers by
Deutsche Solar GmbH (at the time the contracts were concluded still
under the firm Deutsche Solar AG). The supervisory board of Sunways
AG approved the conclusion of this agreement.

In today's agreement, Sunways AG waived its claim for repayment of
down-payments in the remaining amount of still approx. EUR 7.5
million already made by Sunways AG. In addition, the parties agreed
upon an amendment of the previous terms of delivery, that provided
for wafer deliveries until the end of the year 2018 and 2017,
respectively, to the effect that Sunways AG will now conclusively
accept the delivery of wafers in a total volume of approx. 60 MW in
the years 2012 and 2013. The agreement entered into today has a term
until 31 December 2013 the latest. Upon fulfillment of Sunways AG's
newly agreed purchase obligations until then, the two long-term
supply contracts will be deemed amicably terminated as of that time.

Due to the entering into the agreement and also due to the negative
market price development since the beginning of the year 2012,
provisions for anticipated losses for this contractual amendment in
the total amount of approx. EUR 4.6 Mio. are booked and recognised in
profit or loss in the 2011 annual financial statements. However,
compared to the continuation of the long-term contracts on their
original terms and conditions, the agreement is economically more
advantageous.

The amendment agreement to both long-term contracts is made against
the background of current market developments and constitutes an
advantage for Sunways AG compared to an unaltered continuity of these
contracts.

In addition, the management board notifies, that a loss in the amount
of half the share capital in Sunways AG has occurred (Section 92
Para. 1 AktG). The identified loss has occurred as a consequence of
financial effects arising from the amendment agreement with Deutsche
Solar GmbH as well as losses of Sunways AG accrued in the course of
the last months. Notwithstanding, the management board of the company
is still convinced that in particular the conclusion of the amendment
agreement is in the best interest of the company, because the
positive mid- and long-term effects of the amendment agreement
outweigh its negative short-term effects. The management board will
notify the shareholders' meeting taking place on 30 August 2012 of
the loss of half the share capital in Sunways AG pursuant to Section
92 Para. 1 AktG.

Further inquiry note:
Dr. Harald F. Schäfer
Head Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415
E-Mail: communications@sunways.de

end of announcement euro adhoc
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issuer: 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.eu/de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English