89% increase in sales due to quadrupling of Conergy's foreign sales

- Snowy winter and special effects influenced the winter quarter that traditionally boasts weak in sales of facility construction segment
- Board sees Conergy as slightly ahead of its plans for a jump in sales and results in 2006

Hamburg, 10th May 2006 - The renewable energy system supplier Conergy (ISIN DE 00060 40025) was able to greatly increase sales in the first quarter, despite a snowy winter in Germany, its core market. Consolidated sales rose 89% in comparison to the previous first quarter, to €86.3 million from €45.8 million in the previous year. A considerable percentage of this growth was due to foreign sales in markets facing less adverse weather conditions. Foreign sales grew more than fourfold €8.0 million the year before to €33.8 million. Seasonality must be kept in mind when viewing the quarterly results in solar plant construction. Snow-covered roofs are a fundamental reason why Conergy's first quarter share of sales accounts for an estimated 10% of total yearly sales, as has been the case in previous years. Thanks to the fivefold increase of Conergy's own production capacity in the last year and the contractually ensured supply of solar modules, Conergy sees itself as slightly above its plan to raise sales from last year's €530 million to €800 million, which means a growth of over 50%. In order to gain additional market shares in the core business area of photovoltaics, which faces an excess of demand, and to keep margins at least stabile, Conergy has secured high-purity solar silicon from suppliers based in various countries. The company will make this silicon available to solar module suppliers, to increase their production for Conergy.


Conergy expects 50% growth in sales in 2007 and 2008 as well

For 2007 and 2008 as well, Conergy anticipates unimpeded growth impetus, with sales increases of 50% each year. This would allow Conergy to substantially expand its global share in the market for renewable energy systems, which is growing at an annual rate of roughly 25%. "We have already oriented our international management structures and engineering teams towards expanding in the direction of global market shares, in coming years as well," reports Hans-Martin Rüter, Chairman of the Management Board and founder of Conergy AG. As of 31 March, Conergy employed 873 people worldwide to help fulfil its targets for growth, an increase of over 100% from the same time last year, when the company had 421 employees. In the traditionally sales-weak winter quarter, the company had a negative EBIT margin of €8.0 million, due to capital expenditures resulting from the company's own silicon acquisitions and from the development of additional teams of engineers for large-scale renewable projects in the field of bioenergy and large-scale solar-thermal plants. "The operating results, once they have been adjusted to take into account these special factors, show that we are right on target to increase our profit margin slightly in 2006, and to boost net earnings accordingly," explains Hans-Martin Rüter.


50/50/08: The growth philosophy of Conergy until 2008

Starting in 2008, Conergy plans to generate over 50% of its total sales abroad. In addition, plans exist to expand the product line, which is geared towards regionally varying energy requirements, to generate over 50% of sales outside of photovoltaics, the core business area up till now, which is still continuing to grow quickly. A considerable portion of this growth will come from solar thermal, wind and bio energy. Conergy focused its product range on these areas early on, increasing capacities at the manufacturing site in Rangsdorf nearly Berlin fivefold. The product lines offer intelligent system technologies for the rapidly growing global energy requirements, to generate electricity, heating or cooling using various renewable resources. Along with flat plate collectors for sun-powered heating or cooling, Conergy also develops and produces inverters for converting solar direct current into grid-conforming alternating current in all power ranges. In addition to these key high-tech solar technologies, Conergy also produces small wind power generators and patented mounting components for renewable energy systems. In particular, the small wind power generators, which are used worldwide for self-sufficient power supply in combination with solar units, have been increasingly in demand. As a technology leader for developing performance-oriented complete systems, Conergy is expanding its product line in the most lucrative areas of renewable system technology.



Contact at Conergy:

Conergy AG
Thorsten Vespermann
Head of Corporate Communications

Anckelmannsplatz 1
20537 Hamburg
Germany

Phone: +49 (0)40 23 71 02-172
Fax: +49 (0)40 23 71 02-148

E-mail press@conergy.com>press@conergy.com
Internet: http://www.conergy.com

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