November 7, 2007

First Solar, Inc. Announces 2007 Third Quarter Financial Results

PHOENIX, Nov 7, 2007 (PrimeNewswire via COMTEX News Network) -- First Solar, Inc. (Nasdaq:FSLR) today announced its financial results for the third quarter ended September 29, 2007. Quarterly revenues were $159.0 million, up from $77.2 million in the second quarter of fiscal 2007 and up from $40.8 million in the third quarter of fiscal 2006.

Net income for the third quarter of fiscal 2007 was $46.0 million or $0.58 per share on a fully diluted basis, compared to $44.4 million or $0.58 per share for the second quarter of fiscal 2007 and $4.3 million or $0.06 per share on a fully diluted pro-forma basis for the third quarter of fiscal 2006.

Net income for the third and second quarters of fiscal 2007 include one time tax benefits of $7.5 million, or $0.09 per fully diluted share and $39.2 million, or $0.51 per fully diluted share, respectively, due to the reversal of valuation allowances against previously established deferred tax assets in Germany and the United States, respectively.

Pro-forma earnings per share for the three months ended September 30, 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.

"The third quarter of 2007 concludes another important milestone in our mission towards grid parity. We successfully completed the ramp of our German production facility well ahead of schedule, which afforded us with highly leveraged growth during the quarter and provided our customers with additional production volumes in a continued robust demand environment," said Mike Ahearn, chief executive officer and chairman of First Solar.

First Solar will discuss these results and expected results for fiscal 2007 and 2008 in a conference call scheduled for today at 4:30 p.m. ET. To participate in the conference call, please dial (888) 264-8952 or (913) 312-1278. Investors may also access a live audio web cast of this conference call in 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 Monday, November 12, 2007 at 11:59 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering access ID number 6614343.

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     Nine Months Ended
                           --------------------  --------------------
                           Sept. 30,  Sept. 29,  Sept. 30,  Sept. 29,
                             2006       2007       2006       2007
                           ---------  ---------  ---------  ---------
 Net sales                 $  40,794  $ 159,007  $  82,279  $ 303,179
 Cost of sales                24,537     76,967     53,650    162,726
                           ---------  ---------  ---------  ---------
 Gross profit                 16,257     82,040     28,629    140,453
                           ---------  ---------  ---------  ---------
 Operating expenses:
  Research and development     1,657      3,854      4,712     10,675
  Selling, general and
   administrative              8,393     27,082     22,398     58,057
  Production start-up          1,109      2,805      7,750     12,802
                           ---------  ---------  ---------  ---------
   Total operating expenses   11,159     33,741     34,860     81,534
                           ---------  ---------  ---------  ---------
 Operating income (loss)       5,098     48,299     (6,231)    58,919
 Foreign currency gain
  (loss)                        (298)       965      2,792        716
 Interest income                 312      5,298        893     13,199
 Interest expense               (158)      (647)      (866)    (2,131)
 Other expense, net             (481)      (266)      (471)      (881)
                           ---------  ---------  ---------  ---------
 Income (loss) before
  income taxes                 4,473     53,649     (3,883)    69,822
 Income tax benefit
  (expense)                     (181)    (7,615)      (181)    25,658
                           ---------  ---------  ---------  ---------
 Net income (loss)         $   4,292  $  46,034  $  (4,064) $  95,480
                           =========  =========  =========  =========
 Net income (loss) per
  share:
  Basic                    $    0.08  $    0.61  $   (0.08) $    1.30
                           =========  =========  =========  =========
  Diluted                  $    0.07  $    0.58  $   (0.08) $    1.24
                           =========  =========  =========  =========
 Weighted-average number
  of shares used in per
  share calculations:
  Basic                       56,137     75,666     53,757     73,537
                           =========  =========  =========  =========
  Diluted                     57,956     79,088     53,757     76,856
                           =========  =========  =========  =========


                  FIRST SOLAR, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED BALANCE SHEETS
               (In thousands, except per share amounts)
                              (Unaudited)

                                           December 30,  September 29,
                                               2006          2007
                                           ------------  -------------
 ASSETS
 Current assets:
  Cash and cash equivalents                $    308,092  $     117,153
  Marketable securities                             323        564,641
  Accounts receivable, net                       27,123         19,660
  Inventories                                    16,510         31,887
  Economic development funding receivable        27,515         34,323
  Deferred tax asset, net - current                  --          3,752
  Prepaid expenses and other current
   assets                                         8,959         24,369
                                           ------------  -------------
   Total current assets                         388,522        795,785
 Property, plant and equipment, net             178,868        317,552
 Restricted investments                           8,224         14,458
 Deferred tax asset, net - noncurrent                --         45,071
 Other noncurrent assets                          2,896          4,290
                                           ------------  -------------
   Total assets                            $    578,510  $   1,177,156
                                           ============  =============

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Short-term debt                          $     16,339  $      23,713
  Current portion of long-term debt               3,311          9,900
  Accounts payable and accrued expenses          32,083         69,465
  Other current liabilities                         340          9,111
                                           ------------  -------------
   Total current liabilities                     52,073        112,189
  Accrued recycling                               3,724          9,424
  Long-term debt                                 61,047         72,484
  Other noncurrent liabilities                       --          2,240
                                           ------------  -------------
   Total liabilities                            116,844        196,337
 Commitments and contingencies
 Employee stock options on redeemable shares     50,226             --
 Stockholders' equity:
  Common stock, $0.001 par value per share;
  500,000,000 shares authorized; 77,950,515
  shares issued and outstanding at
  September 29, 2007                                 72             78
  Additional paid-in capital                    555,749      1,026,856
  Accumulated deficit                          (145,403)       (49,979)
  Accumulated other comprehensive income          1,022          3,864
                                           ------------  -------------
   Total stockholders' equity                   411,440        980,819
                                           ------------  -------------
   Total liabilities and stockholders'
    equity                                 $    578,510  $   1,177,156
                                           ============  =============


                           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
                                --------------------------------------
                                September 30,  June 30,  September 29,
                                   2006          2007        2007
                                --------------------------------------
                                              (Unaudited)

 Net income                      $   4,292    $  44,418    $  46,034
 Weighted-average shares
  outstanding, diluted              57,956       76,089       79,088
 Adjustment to reflect the
  IPO shares as if they had
  been outstanding since the
  beginning of 2006                 16,193           --           --

 Pro-forma weighted-average
  shares outstanding, diluted       74,149       76,089       79,088

 Net income per share diluted
  as reported                    $    0.07    $    0.58    $    0.58
 Net income per share diluted
  pro-forma                      $    0.06    $    0.58    $    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
          Investor Relations     
          Erica Mannion, 
          (212) 766-1800
          investor@firstsolar.com

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