July 31, 2007

First Solar, Inc. Announces 2007 Second Quarter Financial Results

PHOENIX, Jul 31, 2007 (PrimeNewswire via COMTEX News Network) --

First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the second quarter ended June 30, 2007. Quarterly revenues were $77.2 million, up from $66.9 million in the first quarter of fiscal 2007 and up from $27.9 million in the second quarter of fiscal 2006.

Net income for the second quarter of fiscal 2007 was $44.4 million, or $0.58 per share on a fully diluted basis, compared to net income of $5.0 million, or $0.07 per share on a fully diluted basis for the first quarter of fiscal 2007 and a net loss of $2.5 million for the second quarter of fiscal 2006 or $(0.03) per share on a fully diluted pro-forma basis. Net income for the second quarter of fiscal 2007 includes a one time income tax benefit of $39.2 million, or $0.51 per share on a fully diluted basis, resulting from the reversal of valuation allowances against previously established U.S. deferred income tax assets. The reversal was based upon the Company's assessment of the future realization of its U.S. deferred income tax assets.

Pro-forma earnings per share for the three months ended July 1, 2006 have been adjusted to give effect to the Company's equity offerings during 2006, including its initial public offering, as if each occurred on January 1, 2006. The Company believes the pro-forma earnings per share presentation represents a meaningful basis for the comparison of its current results to results during fiscal periods occurring prior to the Company's initial public offering.

On a GAAP fully diluted basis, net income for the second quarter of fiscal 2007 was $0.58 per share, compared to $0.07 per share for the first quarter of fiscal 2007. Net loss for the second quarter of 2006 was $(0.05) per share on a GAAP fully diluted basis.

First Solar will discuss these results and expected results for fiscal 2007 in a conference call scheduled for today at 4:30 p.m. EDT. To participate in the conference call, please dial (800) 289-0544 or (913) 981-5533. Investors may also access a live audio web cast of this conference call on the Investors section of the Company's website at http://www.firstsolar.com. An audio replay of the web cast will be available approximately two hours after the conclusion of the call. The audio replay will remain available until Friday, August 3, 2007 at 11:59 p.m. EDT and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 5699645.

About First Solar:

First Solar, Inc. (Nasdaq:FSLR) manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions, and peak time grid constraints.

The First Solar, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3052

For First Solar Investors:

This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with the company's business involving the company's products, their development and distribution, economic and competitive factors and the company's key strategic relationships, and other risks detailed in the company's filings with the Securities and Exchange Commission. First Solar assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.


                  FIRST SOLAR, INC. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)
                             (Unaudited)

                              Three Months Ended    Six Months Ended
                              ------------------   ------------------
                               July 1,  June 30,    July 1,  June 30,
                                2006      2007       2006      2007
                              --------  --------   --------  --------
 Net sales                    $ 27,861  $ 77,223   $ 41,485  $144,172
 Cost of sales                  18,761    48,852     29,113    85,759
                              --------  --------   --------  --------
 Gross profit                    9,100    28,371     12,372    58,413
                              --------  --------   --------  --------
 Operating expenses:
  Research and development       1,536     3,763      3,055     6,821
  Selling, general and
   administrative                8,133    17,285     14,005    30,975
    Production start up          4,062     1,523      6,641     9,997
                              --------  --------   --------  --------
     Total operating
      expenses                  13,731    22,571     23,701    47,793
                              --------  --------   --------  --------
 Operating income (loss)        (4,631)    5,800    (11,329)   10,620
 Foreign currency gain (loss)    2,190        21      3,090      (249)
 Interest expense                 (285)   (1,283)      (708)   (1,484)
 Other income (expense), net       242     3,326        591     7,286
                              --------  --------   --------  --------
 Income (loss) before
  income taxes                  (2,484)    7,864     (8,356)   16,173
 Income tax benefit                 23    36,554         --    33,273
                              --------  --------   --------  --------
 Net income (loss)            $ (2,461) $ 44,418   $ (8,356) $ 49,446
                              ========  ========   ========  ========
 Net income (loss) per share:
   Basic                      $  (0.05) $   0.61   $  (0.16) $   0.68
                              ========  ========   ========  ========
   Diluted                    $  (0.05) $   0.58   $  (0.16) $   0.65
                              ========  ========   ========  ========
 Weighted-average number of
  shares used in per share
  calculations:
   Basic                        54,358    72,596     52,567    72,472
                              ========  ========   ========  ========
   Diluted                      54,358    76,089     52,567    75,740
                              ========  ========   ========  ========


                  FIRST SOLAR, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED BALANCE SHEETS
               (In thousands, except per share amounts)
                             (Unaudited)
                                              December 30,   June 30,
                                                 2006          2007
                                               ---------    ---------
 ASSETS
 Current assets:
  Cash and cash equivalents                    $ 308,092    $ 107,799
  Short-term investments                             323      207,208
  Accounts receivable, net                        27,123       13,736
  Inventories                                     16,510       26,848
  Economic development funding receivable         27,515       33,757
  Deferred tax asset, net - current                   --        4,816
  Prepaid expenses and other current assets        8,959       29,923
                                               ---------    ---------
   Total current assets                          388,522      424,087
 Property, plant and equipment, net              178,868      245,559
 Restricted investments                            8,224       14,023
 Deferred tax asset, net - noncurrent                 --       34,403
 Other noncurrent assets                           2,896        5,140
                                               ---------    ---------
   Total assets                                $ 578,510    $ 723,212
                                               =========    =========
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Short-term debt                              $  16,339    $  22,407
  Current portion of long-term debt                3,311        3,327
  Accounts payable and accrued expenses           32,083       51,394
  Other current liabilities                          340           15
                                               ---------    ---------
   Total current liabilities                      52,073       77,143
  Accrued recycling                                3,724        6,448
  Long-term debt                                  61,047       96,477
  Other noncurrent liabilities                        --        1,134
                                               ---------    ---------
   Total liabilities                             116,844      181,202
 Commitments and contingencies
 Employee stock options on redeemable shares      50,226       60,706
 Stockholders' equity:
  Common stock, $0.001 par value per share;
   500,000,000 shares authorized;
   72,997,929 shares issued and outstanding
   at June 30, 2007                                   72           73
 Additional paid-in capital                      555,749      575,047
 Accumulated deficit                            (145,403)     (96,013)
 Accumulated other comprehensive income            1,022        2,197
                                               ---------    ---------
   Total stockholders' equity                    411,440      481,304
                                               ---------    ---------
   Total liabilities and
    stockholders' equity                       $ 578,510    $ 723,212
                                               =========    =========


                           FIRST SOLAR, INC.
                 PRO-FORMA vs. GAAP EARNINGS PER SHARE
                 (in thousands, except per share data)

 A reconciliation of the denominator used in calculating pro-forma
 fully diluted earnings per share is as follows:

                                         Three Months Ended
                                -----------------------------------
                                 July 1,      March 31,    June 30,
                                  2006          2007         2007
                                -----------------------------------
                                             (Unaudited)

 Net income (loss)              $ (2,461)     $  5,028     $ 44,418
 Weighted-average shares
  outstanding, diluted            54,358        75,392       76,089
 Adjustment to reflect the
  IPO shares as if they
  had been outstanding
  since the beginning of 2006     17,972            --           --

 Pro-forma weighted-average
  shares outstanding, diluted     72,330        75,392       76,089

 Net income (loss) per share
  diluted as reported           $  (0.05)     $   0.07     $   0.58
 Net income (loss) per share
  diluted pro-forma             $  (0.03)     $   0.07     $   0.58


This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: First Solar, Inc.

First Solar, Inc.
         Jens Meyerhoff, Chief Financial Officer
         (602) 414-9300
         investor@firstsolar.com
         
         Sapphire Investor Relations, LLC
         Erica Mannion, Investor Relations
         (212) 766-1800
         investor@firstsolar.com

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