Meyer Burger achieves dynamic growth in fiscal year 2006

Meyer Burger’s development in fiscal year 2006 has been extremely dynamic. Incoming orders reached CHF 169.7 million for the reporting period, representing an increase of 152% compared with the previous year. Net sales rose by 39% to CHF 82.6 million. EBIT went up by 85% to CHF 8.0 million (resulting in an EBIT margin of 8.2%). Group earnings increased by 108% to CHF 5.6 million. This corresponds to earnings per share of CHF 1.89. Meyer Burger expects further strong growth in fiscal year 2007.

Strong growth in incoming orders and net sales
Meyer Burger Group recorded for fiscal year 2006 incoming orders in an amount of CHF 169.7 million (FY 2005: CHF 67.4 million). Several large orders together with the overall improvement in the investment climate from customers in the solar industry resulted in this remarkable rise of 152 %. The order backlog as of 31 December 2006 had almost quadrupled compared to year end of 2005, and had reached CHF 141.4 million (31.12.2005: CHF 36.6 million). This order backlog situation offers an excellent platform for further strong sales growth in 2007.

Net sales in 2006 rose by 39% to CHF 82.6 million (FY 2005: CHF 59.5 million). This substantial increase is based purely on organic growth. Key elements with regard to net sales growth were the excellent economic development in Asia, particularly in China, and the positive investment climate in Europe. In terms of a regional breakdown of net sales for 2006, Europe accounted for 32%, Asia for 65% and North America for 3%. Operating income went up by 35% to CHF 97.9 million (FY 2005: CHF 72.5 million).

Increased profitability
As a consequence of the higher sales, gross profit also rose by 47% to CHF 39.9 million (FY 2005: CHF 27.1 million). This led to a gross margin in 2006 of 40.7% (FY 2005: 37.5%).

EBIT amounted to CHF 8.0 million for fiscal year 2006 (FY 2005: CHF 4.3 million), representing an increase of 85%. EBIT margin improved to 8.2% (FY 2005: 6.0%). Meyer Burger therefore exceeded its targeted EBIT margin of 8% for the entire fiscal year 2006. The Company achieved this, despite the fact that it made a number of planned one-time investments during the second half year of 2006, in particular the transfer of its production site from Steffisburg to Thun, the expansion of production capacities, the introduction of SAP and the expansion of the regrooving service business. Production at the new facility in Thun was started in February 2007, with available production space of over 7,000 m2. SAP went into operation successfully in January 2007.

Earnings after taxes and minorities for fiscal year 2006 more than doubled to CHF 5.6 million (FY 2005: CHF 2.7 million). Earnings per share for fiscal year 2006 amounted to CHF 1.89.

Solid balance sheet structure
With the improved earnings and Meyer Burger’s successful Initial Public Offering in November 2006, the Company shows a solid balance sheet structure as of 31 December 2006, with total assets of CHF 124.7 million and an equity ratio of 40.7%. Meyer Burger is financially well equipped for the continued strategic expansion of its business activities.

Outlook for 2007
Meyer Burger will continue to pursue its growth strategy in the current fiscal year. Assuming that the favourable economic environment will remain at the same level, the Company is aiming for net sales growth of over 30% and an EBIT margin of 9-11% for fiscal year 2007. Targeted acquisitions to enforce the growth objectives and further strengthen the Company’s market position will provide additional momentum in the medium term.

Board of Directors of Meyer Burger Technology Ltd
The Board of Directors of Meyer Burger Technology Ltd is currently made up of three members: Peter M. Wagner (Chairman), Dr Alexander Vogel (Vice-Chairman) and Peter Pauli (Delegate). Following the principles of modern corporate governance, the Board of Directors will propose to the Ordinary General Meeting of Shareholders on 4 May 2007 that Professor Dr Eicke R. Weber be elected as a new member of the Board of Directors of Meyer Burger Technology Ltd. Professor Weber has a doctorate in physics and has been Director of the Fraunhofer Institute for Solar Energy Systems ISE (Freiburg, Germany) since July 2006. At the same time, he is a Professor in the Department of Mathematics and Physics and the Department of Applied Sciences at the Albert-Ludwig University of Freiburg as well as a member of the Materials Research Center of the Albert-Ludwig University of Freiburg.

Professor Weber’s comprehensive experience in the area of materials research into semiconductors, particularly silicon for microelectronics and photovoltaic, and into semiconductors for high-frequency and opto-electronic applications will perfectly complement the professional experiences of the existing members of the Board of Directors.

Sale of real estate in Steffisburg
Meyer Burger signed a contract for the sale of real estate in Steffisburg, which will not be used for operational purposes anymore in the future. The contract is tied to a number of conditions that must be fulfilled before it reaches legal effectiveness. Such conditions include a plebiscite with regard to usage of the premises, a cantonal acceptance and an approval regarding the planned building complex in favour of the purchasing party. Meyer Burger will publish further information, as soon as the contract has become legally effective.

For further information please have a look on www.meyerburger.ch

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