February 17, 2009

Toronto, Canada: Canadian Solar Pre-Announces Select Q4 2008 Results

Chinese manufacturer, Canadian Solar (CSI Solar) today pre-announced select unaudited financial results for the fourth quarter of 2008.

For the fourth quarter, the Company expects to achieve $66 to $71 million in net revenues.

The Company believes it was successful in achieving its cash management objectives:

For the end of the fourth quarter, its anticipates reporting a cash position in excess of $130 million. Accounts receivables are expected to be in the range of $56 to $64 million as of December 31, 2008, compared to $153 million net at the end of the third quarter, 2008. During the fourth quarter, CSI chose to pay down approximately $78 million of short-term and related party debt, which brings outstanding short-term loan balance to approximately $92 million at the end of 2008.

Gross margin in the fourth quarter is expected to be negative, reflecting the weak Euro, a decline in module pricing in December, and an inventory revaluation provision that resulted from a rapid decline in the raw material pricing in December, 2008.

Regarding the business outlook for 2009, the Company has received record-level inquiries from our customers. Signed sales contracts for 2009 have reached 262 MW, with an additional 190 MW in the near-term pipeline, a strong indicator that there is fundamental demand for the Company's products despite the global financial crisis.

The rapid decline in solar equipment costs makes the return on solar systems much more attractive. On the other hand, the company expects that near-term solar demand and pricing are still being impacted by the current credit environment, winter weather in Germany and market-wide inventory clearance efforts.

Given the current business climate and market uncertainty, the Company is adjusting its shipment guidance for 2009 to approximately 300 to 350 MW. This estimate is preliminary and contingent on several market conditions that are difficult to predict, including cost and availability of credit.

Dr. Shawn Qu, Chairman and CEO said: "The Company will continue to execute its business strategy to address the current market conditions. Our strategy includes the following:

-- Maintaining a healthy balance sheet and a strong cash position,
-- Increasing our global sales and marketing efforts in key geographic markets such as Europe and the U.S., and
-- Proactively working with our strategic suppliers to implement an aggressive cost reduction program both internally and externally.

"We will continue offering two complete and fully scaled product lines: regular, high-efficiency modules and our proprietary solar-grade silicon e-Modules, which are the most cost-competitive crystalline PV modules in the industry. Currently, the Company is able to sell its regular solar modules at very competitive prices and to price its low-cost e-Modules at a 10-15% discount to its regular silicon modules, while still maintaining a reasonable gross margin structure."

Further details about: Canadian Solar