Evergreen Solar Announces 2009 Second Quarter Results

Devens Factory Ships 23.2 MW, Up 34% Sequentially
MARLBORO, Mass.--(Business Wire)--
Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon solar
power products with its proprietary, low-cost silicon wafer technology, today
announced financial results for the second quarter ended July 4, 2009.

"We continue to ramp our production at Devens in line with market demand,"
stated Richard M. Feldt, Chairman, CEO and President. "We shipped 23.2 MW at an
average price of $2.70 per watt compared to the 17.3 MW sold at $3.13 per watt
during the first quarter. The momentum we are building keeps us on track to
achieve our $2.00 per watt goal when Devens reaches its 40 MW of quarterly
capacity. Additionally, we are now identifying cost improvement programs that we
believe will gradually take us to about $1.50 per watt at full factory capacity
in the next two years."

"Our financial and market positions are strong and, with our recently completed
contract manufacturing agreement with Jiawei, we remain confident in our ability
to be well positioned when the industry returns to significant growth as
fundamental structural issues like those facing global credit markets begin to
resolve," concluded Mr. Feldt.

Second Quarter 2009 Financial Results

Revenues for the second quarter of 2009 were $63.8 million, including $1.1
million of fees from our Sovello joint venture, compared to $55.8 million for
the first quarter of 2009, including $1.4 million of fees and $22.8 million for
the second quarter of 2008, including $4.6 million of fees.

Gross margin for the second quarter of 2009 was 1.9%, compared to 1.2% for the
first quarter of 2009 and 34.7% for the second quarter of 2008. The decrease
from the prior year period was the result of lower selling prices, lower fees
from the Sovello joint venture, and higher initial costs related to the ramp in
production at Devens.

Net loss for the second quarter of 2009 was $20.3 million, or $0.11 per share,
and includes on-going charges associated with our Marlboro pilot facility
closure and Midland facility start-up costs of $1.5 million. Net loss for the
second quarter also includes equity losses of $5.3 million, representing our
share of losses incurred by Sovello during the quarter. Sovello losses increased
substantially during the second quarter primarily due to lower sales volume and
lower average selling prices. Weighted average shares outstanding for the second
quarter increased as the result of our successful common stock offering,
resulting in net proceeds of $72.8 million.

Net loss for the first quarter of 2009 was $64.3 million, or $0.40 per share,
and includes charges of $43.9 million for the write-off of our loan receivable
and related interest from a future silicon supplier, $3.5 million of facility
start-up costs for the second phase of Devens and Midland string factory, and
$1.8 million of on-going costs associated with the closure of the Marlboro pilot
facility.

Conference Call Information

Management will conduct a conference call at 5:00 p.m. (ET) today to review the
Company's second quarter financial results and highlights. The call will be
webcast live over the Internet and can be accessed by logging on to the
"Investors" section of Evergreen Solar's website, www.evergreensolar.com prior
to the event.

The call also can be accessed by dialing (877) 704-5379 or (913) 312-1270
(International) prior to the start of the call. For those unable to join the
live conference call, a replay will be available from 8:00 p.m. (ET) on July 30
through 8:00 p.m. (ET) on August 7. To access the replay, dial (888) 203-1112 or
(719) 457-0820 and refer to confirmation code 7684219.

About Evergreen Solar, Inc.

Evergreen Solar, Inc. develops, manufactures and markets String Ribbon solar
power products using its proprietary, low-cost silicon wafer technology. The
Company's patented wafer manufacturing technology uses significantly less
polysilicon than conventional processes. Evergreen Solar's products provide
reliable and environmentally clean electric power for residential and commercial
applications globally. For more information about the Company, please visit
www.evergreensolar.com. Evergreen Solar and String Ribbon are trademarks of
Evergreen Solar, Inc.

Safe Harbor Statement

This press release contains forward-looking statements made pursuant to the safe
harbor provisions of Section 21E of the Securities Exchange Act of 1934. These
statements are based on management`s current expectations or beliefs. Such
forward-looking statements include, but are not limited to, those related to
expectations regarding our ability to significantly reduce our manufacturing
costs and increase the capacity at our Devens facility; our ability generally to
manufacture and sell our products and the potential benefits of our contract
manufacturing relationship with Jiawei. These statements are neither promises
nor guarantees, and involve risks and uncertainties that could cause actual
results to differ materially from such forward-looking statements, including
risks associated with the company`s ability to lower manufacturing costs and
otherwise successfully manufacture and sell its products; uncertainties related
to government regulations, subsidies and incentives; risks from various economic
factors such as credit market conditions, fluctuations in currency exchange
rates and other risks and uncertainties identified in the company`s filings with
the Securities and Exchange Commission. Evergreen Solar disclaims any obligation
to update or revise such statements to reflect any change in company
expectations, or in events, conditions or circumstances on which any such
statements may be based, or that may affect the likelihood that actual results
will differ from those set forth in the forward-looking statements.

Evergreen Solar, Inc. (Nasdaq: ESLR)
Condensed Consolidated Statements of Operations (a)
(in thousands, except per share data)
(Unaudited)

Quarter Ended Year-to-Date Period Ended

June 28, 2008 July 4, 2009 June 28, 2008 July 4, 2009

Product revenues $ 18,118 $ 62,697 $ 36,377 $ 117,136
Royalty and fee revenues 4,638 1,141 9,326 2,508
Total revenues 22,756 63,838 45,703 119,644
Cost of revenues 14,863 62,628 30,094 117,750
Gross profit 7,893 1,210 15,609 1,894
Operating expenses:
Research and development 5,887 4,444 10,830 8,890
Selling, general and administrative 5,894 6,742 10,886 13,118
Write-off of loan receivable from silicon supplier - - - 43,882
Facility start-up 8,573 687 11,992 4,146
Restructuring charges 2,708 825 4,570 2,617
Total operating expenses 23,062 12,698 38,278 72,653

Operating loss (15,169 ) (11,488 ) (22,669 ) (70,759 )

Other income (expense):
Foreign exchange gains (losses), net (158 ) 1,681 3,656 982
Interest income 2,735 1,341 5,762 3,554
Interest expense (46 ) (6,532 ) (362 ) (11,912 )
Other income (expense), net 2,531 (3,510 ) 9,056 (7,376 )
Loss before equity income (loss) from interest in Sovello AG (12,638 ) (14,998 ) (13,613 ) (78,135 )
Equity income (loss) from interest in Sovello AG 3,716 (5,340 ) 4,666 (6,492 )
Net loss $ (8,922 ) $ (20,338 ) $ (8,947 ) $ (84,627 )

Net loss per share:
Basic $ (0.08 ) $ (0.11 ) $ (0.08 ) $ (0.49 )
Diluted $ (0.08 ) $ (0.11 ) $ (0.08 ) $ (0.49 )

Weighted average shares used in computing basic and diluted net loss per share:
Basic 118,327 180,745 113,625 171,163
Diluted 118,327 180,745 113,625 171,163

(a) On January 1, 2009, the Company adopted FSP No. APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)" concerning convertible debt accounting and FSP EITF 03-6-1 "Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities" concerning the calculation of earnings per share. These rules require restatement of prior periods to conform to current accounting.

Evergreen Solar, Inc. (Nasdaq: ESLR)
Condensed Consolidated Balance Sheets (a)
(in thousands, except share data)
(Unaudited)

December 31, 2008 July 4, 2009
(Adjusted)
Assets
Current assets:
Cash and cash equivalents $ 100,888 $ 83,474
Marketable securities 76,621 2,674
Accounts receivable, net of allowances for doubtful accounts 35,458 61,559
Due from Sovello AG 1,949 3,306
Inventory 23,500 29,524
Prepaid cost of inventory 11,696 16,176
VAT receivable, net 1,474 1,495
Other current assets 7,684 7,892
Total current assets 259,270 206,100

Investment in and advances to Sovello AG 115,553 122,984
Restricted cash 212 3,128
Deferred financing costs 6,152 5,460
Loan receivable from silicon supplier 41,757 -
Prepaid cost of inventory 172,193 160,480
Fixed assets, net 406,191 442,634
Other assets 3,579 366

Total assets $ 1,004,907 $ 941,152

Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 62,652 $ 22,732
Due to Sovello AG 22,840 1,802
Accrued employee compensation 6,451 5,861
Accrued interest 7,392 7,024
Accrued warranty 1,182 1,765
Total current liabilities 100,517 39,184

Senior convertible notes, net of discount 311,531 317,267
Deferred income taxes 9,776 9,496
Total liabilities 421,824 365,947
Commitments and contingencies

Stockholders' equity:
Common stock, $0.01 par value, 250,000,000 shares authorized,
164,874,850 and 208,277,378 issued and outstanding at December 31, 2008
and July 4, 2009, respectively 1,649 2,083
Additional paid-in capital 803,491 879,496
Accumulated deficit (223,687 ) (308,314 )
Accumulated other comprehensive income (loss) 1,630 1,940

Total stockholders' equity 583,083 575,205

Total liabilities and stockholders' equity $ 1,004,907 $ 941,152

(a) On January 1, 2009, the Company adopted FSP No. APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)." The rule requires restatement of prior periods to conform to current accounting.

Evergreen Solar, Inc.
Michael McCarthy, 508-251-3261
Director - Investor Relations
mmccarthy@evergreensolar.com

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