REpower posts preliminary figures for 2005

Hamburg, 23 February 2006. According to preliminary calculations, REpower Systems AG (WKN 617703) achieved an overall result of EUR 336 million in the 2005 financial year (previous year: EUR 301.4 million). Consolidated sales increased from EUR 320.7 million to EUR 331 million with an operating result (EBIT) of EUR –4.3 million compared to EUR –3.4 million in the previous year. Positive cash flow was generated again, amounting to EUR 14.4 million after EUR 33.5 million in 2004. REpower plans to increase capital by making full use of authorised capital to finance further growth in the first half of 2006. In addition, the Supervisory Board today elected Mr Bertrand Durrande as its new Chairman.

REpower installed 201 wind turbines in the 2005 financial year, following 161 turbines in the previous year. There was a considerable increase of 33.3% in installed output from 274.5 megawatts in 2004 to 366 megawatts. This corresponds to an overall result of EUR 336 million and sales of EUR 331.0 million for the reporting period. The overall result totalled EUR 301.4 million with sales of EUR 320.7 million in the previous year. The export share thus increased from 31.9 to 72.4% with regard to the new installations.

At EUR –4.3 million, earnings (EBIT) were slightly below the previous year's level of EUR –3.4 million. Net loss was down from EUR –9.3 million in the 2004 financial year to EUR –6.3 million. Earnings per share increased accordingly from EUR –1.72 to EUR –1.11 (undiluted).

The number of employees in the REpower Systems Group was up by 44 from 587 to 631 employees in 2006. This increase of around 7.5 percent relates primarily to the areas of Technology, Service and Development.

REpower anticipates considerable sales growth and a positive operating result for the current financial year. The Board of Management is aiming to increase capital by using the remaining authorised capital to finance further growth. Some of the funds are to be used to integrate rotor blade production into the value-added chain at REpower Systems AG. The Supervisory Board today adopted a resolution approving the planned capital increase.

The plan is to increase capital, which currently stands at EUR 5,941,198.00, by a provisional amount of EUR 2,160,599.00 for cash investments to a provisional total of EUR 8,101,797.00 and to issue 2,160,599 no-par value ordinary shares in the holder's name at an issue price of EUR 1.00 per share with entitlement to dividend from 1 January 2005. It is also planned that Dresdner Bank Aktiengesellschaft will apply for the new shares and be responsible for offering them to company shareholders for subscription at a ratio of 3:1 between the provisional dates of 24 March and 6 April 2006. Subscription rights are to be excluded at a maximum amount of EUR 180,200.00.

The Board of Management and Supervisory Board of Repower Systems AG will determine further details regarding the capital increase and the conditions of issuing shares, in particular the purchase price at which the new shares will be offered to shareholders, before the start of the subscription period.

The Supervisory Board today elected Mr Bertrand Durrande, who is currently a shareholder’s representative for the main shareholder AREVA on the Supervisory Board, as its new Chairman. AREVA has also undertaken to exercise its subscription rights in full during the capital increase and to subscribe under special terms to additional shares that will not have been subscribed for by other existing shareholders and for which pre-emptive rights have been excluded.

Furthermore, REpower’s CEO, Prof. Dr. Fritz Vahrenholt, was given a four-year employment contract running until April 2010, and an option to extend the contract for a further year.