December 18, 2008

St. Peters, MO, USA: MEMC Revises Down Fourth Quarter Revenue Guidance

MEMC yesterday commented on market conditions impacting its business and provided an update to its fourth quarter financial targets. Over the last few weeks, end demand for many industries, including semiconductor and solar, has continued to decline as a result of the global economic slowdown.

In addition, the solar market has been impacted by the reduced availability of credit, which has limited the purchasing ability of some solar customers. Given these factors, combined with the continuing inventory reduction efforts by semiconductor device makers, the company has revised its fourth quarter outlook.

The company now anticipates that revenue for the 2008 fourth quarter will be approximately $400 to 425 million, with gross margin of approximately 46%, plus or minus one percentage point. This compares to the company’s previously announced targets of $500 million in revenue, plus or minus $25 million, with gross margin of 48% plus or minus two percentage points. Expectations for operating expenses remain unchanged at approximately $27 million.

“The revised outlook is primarily a result of a continued deterioration in end demand for semiconductor products amid the weak macroeconomic environment,” commented Marshall Turner, MEMC’s Interim Chief Executive Officer. “In addition, we have reduced certainty that some remaining semiconductor orders that have been booked for delivery this quarter will be pulled by customers, and that some customers who have placed short-term orders for solar products will meet all of our purchase conditions, given their tight credit environment. We are revising our outlook to account for this uncertainty.”

Further details about: MEMC Electronic Materials, Inc.