October 16, 2008

Boulder, CO, USA: Real Goods Solar Merges with Regrid Power

Real Goods Solar, a residential solar energy integrator, has expanded its business through a merger with Regrid Power, Inc. of Campbell, California.

This transaction represents the Company's fourth acquisition in less than a year. Regrid Power, Northern California's leader in custom engineered solar electric systems primarily for residential customers, generated over $15 million of revenue and positive operating income for the twelve months ended September 30, 2008.

Consideration paid, including debt assumed, was less than one times trailing twelve months revenue, and will consist of one-third cash and two-thirds stock, as well as an "earn out" provision. This strategic transaction is consistent with Real Goods' strategy of driving profitable growth through the acquisitions of established market leaders with reputations for quality, in addition to its organic growth.

"Our interest in Regrid Power was its excellent reputation, consistently high gross margin and profitability, and especially the quality of its leadership," said Jirka Rysavy, Real Goods' Chairman. "We plan for Tom McCalmont, founder and CEO of Regrid Power, to become CEO of Real Goods Solar and a member of its Board of Directors during the next two months. John Schaeffer, Real Goods' founder and current CEO, will become President, and Erik Zech, current President and CFO, will become CFO."

"By combining our operational efficiencies and design excellence with Real Goods Solar, a solar pioneer and an industry leader, we will have an enhanced ability to scale and deliver our outstanding service to a much larger population of customers," said Tom McCalmont, CEO of Regrid Power. "Real Goods is the original solar company and has a philosophy that is very compatible with Regrid's."

"This transaction establishes Real Goods as the undisputed market leader in residential solar installations, and we are very excited to integrate Regrid's design excellence and unique power output guarantee," said John Schaeffer, CEO of Real Goods Solar. "We are pleased to further strengthen our position in Northern California and we believe Regrid Power is a good example of how we continue to leverage our existing infrastructure with strategic acquisitions that offer an established customer base, compatible geography and realizable synergies."

Regrid Power, Inc. custom designs and builds solar power systems that produce the optimal amount of power for each customer. Regrid Power backs their work with a performance guarantee unique in the industry, the PowerPledge. Since its founding in 2002 by Tom and Darlene McCalmont, Regrid Power has installed over 1,000 PV systems representing approximately 5MW of generating capacity, and the company demonstrates design excellence through its six NABCEP certified PV designers on staff.

Further details about: Regrid Power, Inc. and Real Goods Solar, Inc.