Solar cell manufacturer Itarion to continue business operations

• CENTROSOLAR is confident that Itarion operations will be continued
• Qimonda Solar GmbH not affected by insolvency of parent company
• Positive indications from Portuguese government and Portuguese banks
• CENTROSOLAR will invite other technology partners

Qimonda AG, Munich, filed for insolvency. CENTROSOLAR Group AG is currently building up a production of solar cells in partnership with Qimonda Solar GmbH, a fully owned subsidiary of Qimonda AG. The venture, called Itarion Solar Lda, based close to Porto (Portugal), is currently on track with installing the production facilities. Qimonda Solar GmbH is so far not affected by the insolvency of the parent company.

CENTROSOLAR is therefore confident that Itarion´s business operations will continue. Government agencies in Portugal have rated Itarion as a project of national interest. The core members of the management team in Porto, as well as the technology experts, are willing to remain with the company.

In the event of Qimonda Solar GmbH likewise going into insolvency as a result of the parent company´s insolvency, CENTROSOLAR would be prepared to continue the operations of Itarion on its own. CENTROSOLAR is holding talks with the banks that are financing Itarion with a view to continuing the business potentially as the sole owner. Its aim is nevertheless to run Itarion together with a technology partner. In agreement with Qimonda Solar GmbH, CENTROSOLAR is planning to invite other semiconductor and solar companies to become partners in Itarion.

Should the continuation of Itarion unexpectedly fail, the Management Board estimates that a potential total loss of CENTROSOLAR’s participation in Itarion would result in additional cash requirements for CENTROSOLAR of up to EUR 18 million, if at the same time Qimonda Solar GmbH failed to fulfil its payment obligations. CENTROSOLAR has access to sufficient liquidity to cover potential charges of this magnitude. Such a scenario, however, is not being anticipated as Itarion remains an attractive investment for all shareholders with a superior cost position and a technology team with unique expertise, not only in photovoltaics but also in the related field of semiconductors.