Solar Millennium AG / Miscellaneous

10.10.2008

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement.

• Approval of eight-year tax incentive scheme for solar energy in the USA. • Tax credits improve development and investment reliability for developing solar power plants. • Solar Millennium short-listed for the realisation of solar-thermal power plants with an overall capacity of around 1,500 MW.

Erlangen/Berkeley, 10.10.2008 Solar Millennium AG (ISIN DE0007218406) is pleased about the improved economic framework for solar-thermal power plants in the US. The Company considers this initiative as a very good chance to realise a number of projects already developed to a large extent from its well equipped pipeline of solar-thermal power plants in the USA.

On October 3, the House of Representatives passed with a vast majority the extension of the Investment Tax Credit (ITC) by eight years. The act was subsequently signed by President George Bush.

The approval of the ITC improves significantly the planning and investment reliability for solar-thermal power plants in the USA, as the regulations effective so far would have expired at the end of 2008. The ITC allows an investor paying taxes in the US to deduct up to 30 percent of the investment sum from his tax bill at the commissioning date of the power plant. As the ITC is also available for utilities, they now have an incentive to invest in solar power plants.

Through its US-subsidiary for project development, Solar Millennium LLC, Berkeley, the Group has already secured suitable land for building solar power plants with an overall capacity of about 5,000 MW in the South-West of the United States. Several projects with a total capacity of about 1,500 MW have been short-listed by the respective utilities. Based on the current stage of negotiations, Solar Millennium expects soon the finalisation of Power Purchase Agreements (PPA) as the next important step for the realisation of the projects. The electricity supply contracts with agreed upon power tariffs build the economic foundation for further planning and construction of the power plants.

'Due to the lacking extension of the ITC, the activities in the solar sector slowed down in the US this year. We have used this period to develop a number of sites for further projects as well as to build up the capacities for the construction of solar power plants with our joint venture, MAN Solar Millennium. Thanks to the adopted measures we can now finalise our negotiations with the utilities', says Christian Beltle, CEO of Solar Millennium AG. 'We have been waiting for this signal for a long time and expect to be able to begin with the realisation of the first projects already next year.'

Information and Explaination of the Issuer to this News:

About Solar Millennium AG: Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with a main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specialises in parabolic trough power plants - a reliable, proven technology in which the company has a worldwide leading position covering all major business sectors along the value chain for solar thermal power plants from project development over technology and turn-key construction to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever para-bolic trough power plants, which are already under construction. Further projects are planned worldwide with an overall capacity of over 1,000 Megawatts. The current regional focus is on Spain, the USA, China and North Africa. In addition, the company develops solar chimney power plants aiming to make this technology ready for the market.

About solar thermal power plant technology: Solar thermal power plants generate electricity using thermal energy converted from solar radiation. In a parabolic trough power plant, the solar radiation is concentrated by trough-shaped mirrors onto a pipe in the focal line of the collector and absorbed by a heat transfer fluid which, thus, heats up to about 400°C. The heat is transported by the fluid to the power block where it generates steam by means of a heat exchanger. As with conventional power plants, the steam powers a turbine to generate electricity. And by integrating a thermal storage, electricity can be supplied on demand, even after sunset.

Contact: Solar Millennium AG Sven Moormann Head of Corporate Communications Tel.: +49 (0) 9131 9409-0 Email: presse@SolarMillennium.de www.SolarMillennium.de

Solar Millennium AG Dr. Stefan Eckhoff Head of Investor Relations Tel.: +49 (0)9131 9409-0 Email: investor@SolarMillennium.de www.SolarMillennium.de

10.10.2008 Financial News transmitted by DGAP