Evergreen Announces Quarterly Results

Evergreen Solar, Inc. a developer, marketer and manufacturer of photovoltaic (solar power) products for the worldwide market, has announced results for the second quarter ended June 30, 2002.

Marlboro, Massachusetts – July 30, 2002 [SolarAccess.com] For the three months ended June 30, 2002, product revenues were US$1.1 million, an increase of US$863,000 from US$212,000 for the same period in 2001. Research revenues for the second quarter were US$207,000, as compared to US$348,000 for the same period of last year. Net loss for the second quarter of 2002 was US$3.5 million, or US$0.30 per share, as compared with a net loss of US$2.8 million, or US$0.25 per share, for the second quarter of 2001. At June 30, 2002, cash, cash equivalents, and short-term investments totaled US$18.0 million, compared to US$26.3 million at December 31, 2001 and US$22.2 million at March 31, 2002. Net fixed assets declined slightly to US$15.6 million from the first quarter of 2002. Capital expenditures for the quarter were US$434,000, the majority of which was spent on longer lead equipment for manufacturing expansion. For the six months ended June 30, 2002, product revenues were US$2.0 million, an increase of US$1.6 million from US$358,000 for the same period in 2001. Research revenues for the six months were US$443,000, a decrease of US$236,000 from the same period in 2001. Net loss for the first six months of 2002 was US$6.9 million, an increase of US$1.7 million from US$5.2 million for the first six months of 2001. “During the second quarter, we continued to make good progress on our revenue and cost objectives,” said Mark A. Farber, President and Chief Executive Officer of Evergreen Solar. “Once again, we showed significant improvement in product gross margins, indicating that overall we continue to be on track with our planned improvements in yield, throughput, labor productivity, and cell conversion efficiency associated with the scale-up of our first manufacturing line. Of particular note has been the recent improvement in cell conversion efficiency, which is currently averaging 13 percent. We also continued to broaden our geographic sales mix in the residential and commercial grid-connected markets in New York and New Jersey.” The company will hold a conference call to discuss its second quarter 2002 results on Tuesday, July 30, 2002, at 10 AM ET. A live webcast of the conference call will be available online. (Nasdaq: ESLR)