February 5, 2009

Marlboro, MA, USA: Evergreen Solar Announces 2008 Fourth Quarter and Annual Results

Evergreen Solar today announced financial results for the fourth quarter and fiscal year ended December 31, 2008.

Revenues for the fourth quarter of 2008 were $44.2 million, including $3.1 million of fees from the Sovello (formerly EverQ) joint venture, compared to $22.1 million for the third quarter of 2008, including $4.3 million of fees and $22.2 million for the fourth quarter of 2007, including $5.3 million of fees.

Gross margin for the fourth quarter of 2008 was 4.6%, compared to 5.7% for the third quarter of 2008 and 28.1% for the fourth quarter of 2007. The decrease from last year was due to lower average selling prices and higher costs associated with manufacturing inefficiencies experienced during the start up of the Devens facility.

Net loss for the fourth quarter of 2008 was $52.1, or $0.32 per share, and includes charges of $23.1 million for the closure of the Marlboro pilot facility, $8.0 million for the write-off of certain research and development equipment and $9.7 million of facility start up costs for Devens and Midland.

Net loss for the third quarter of 2008 was $23.8, or $0.18 per share, and included $9.0 million of facility start up costs and $2.7 million of accelerated depreciation on equipment relating to the ramp down of the Marlboro pilot facility.

Revenues for 2008 were $112.0 million, compared to $69.9 million for 2007. The increase was due to added volume from the Devens manufacturing facility, which began during the third quarter of 2008.

Gross margin for 2008 was 16.9% compared to 24.4% for 2007. The decrease was due to higher costs associated with manufacturing inefficiencies experienced during the start up of the Devens facility. Net loss for 2008 was $84.9 million, or $0.65 per share, which includes Devens and Michigan facility start up costs of $30.6 million, equipment write-offs of $8.0 million and restructuring costs of $30.4 million, compared to $16.6 million, or $0.19 per share for 2007.

“Our Devens capacity expansion remains on plan and we expect to reach full capacity of 40 MW per quarter by the end of 2009,” said Richard M. Feldt, Chairman, CEO and President. “With the closure of our pilot manufacturing facility in Marlboro at the end of 2008, our process and technical employees are completely focused on Devens and will help us achieve our manufacturing cost target of approximately $2 per watt as we ramp capacity and streamline factory operations during the year.”

“In January, we received the certificate of occupancy for our string factory in Midland, Michigan and installed and tested our first 4 reactors. When completed by the end of 2009, this facility will produce enough string to meet the needs of our Devens facility. This strategic investment will satisfy our requirements for string at a substantially lower cost as we grow,” continued Mr. Feldt.

“We continue to make substantial progress at Devens and we have almost 80 MW under sales contracts for shipment in 2009. We also believe that the long-term market prospects for the solar industry are very promising, especially given the significant commitment to renewable energy by the Obama administration. However, like all companies in the industry, we expect that demand for solar products in the first half of 2009 may be materially impacted by both the typical seasonal weakness and the difficult worldwide economic and credit environment,” Mr. Feldt concluded.

Further details about: Evergreen Solar