July 30, 2008

First Solar, Inc. Announces 2008 Second Quarter Financial Results

TEMPE, Ariz., Jul 30, 2008 (BUSINESS WIRE) -- First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the second quarter ended June 28, 2008. Quarterly revenues were $267.0 million, up from $196.9 million in the first quarter of fiscal 2008 and up from $77.2 million in the second quarter of fiscal 2007.

Net income for the second quarter of fiscal 2008 was $69.7 million or $0.85 per share on a fully diluted basis, compared to net income of $46.6 million or $0.57 per share on a fully diluted basis for the first quarter of fiscal 2008. Net income for the second quarter of fiscal 2007 was $44.4 million or $0.58 per share on a fully diluted basis, which included a one-time income tax benefit of $39.2 million that resulted from the reversal of valuation allowances against previously established U.S. deferred income tax assets.

First Solar will discuss these results and expected results for fiscal 2008 in a conference call scheduled for today at 1:30 p.m. PDT (4:30 p.m. EDT). Investors may 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 conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until August 1, 2008 at 8:59 p.m. PDT (11:59 p.m. EDT) and can be accessed by dialing 888-266-2081 or 703-925-2533 and entering access ID number 1255716.

About First Solar, Inc.

First Solar, Inc. (Nasdaq: FSLR) manufactures solar modules with an advanced thin film semiconductor technology and provides comprehensive photovoltaic (PV) solutions that significantly reduce solar electricity costs. By enabling clean, renewable electricity at competitive prices, First Solar provides an economic and environmentally responsible alternative to peaking fossil-fuel electric generation. First Solar PV power plants operate with no water, air emissions or waste stream. First Solar set the benchmark for environmentally responsible product life cycle management by introducing the industry's first comprehensive collection and recycling program for solar modules. From raw material sourcing through end-of-life collection and recycling, First Solar is focused on creating cost-effective renewable energy solutions that protect and enhance the environment.

For First Solar Investors:

This press release contains forward-looking statements based on current information and expectations and are subject to uncertainties and changes in circumstances and do not constitute guarantees of future performance. The statements involve a number of factors that could cause actual results to differ materially from those statements, including the risks as described in the company's most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. First Solar assumes no obligation to update any forward-looking information contained in this press release 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
                                  ------------------ -----------------
                                  June 28,  June 30, June 28, June 30,
                                    2008      2007     2008     2007
                                  --------- -------- -------- --------
Net sales                          $267,041  $77,223 $463,956 $144,172
Cost of sales                       122,341   48,852  214,932   85,759
                                  --------- -------- -------- --------
   Gross profit                     144,700   28,371  249,024   58,413
                                  --------- -------- -------- --------
Operating expenses:
 Research and development             7,725    3,763   12,485    6,821
 Selling, general and
  administrative                     43,626   17,285   72,297   30,975
 Production start-up                  4,622    1,523   17,383    9,997
                                  --------- -------- -------- --------
   Total operating expenses          55,973   22,571  102,165   47,793
                                  --------- -------- -------- --------
Operating income                     88,727    5,800  146,859   10,620
Foreign currency gain (loss)            647       21    1,421    (249)
Interest income                       4,923    3,773   11,608    7,900
Interest expense, net                    --  (1,283)      (4)  (1,484)
Other income (expense), net           (441)    (447)    (819)    (614)
                                  --------- -------- -------- --------
Income before income taxes           93,856    7,864  159,065   16,173
Income tax benefit (expense)       (24,185)   36,554 (42,775)   33,273
                                  --------- -------- -------- --------
Net income                          $69,671  $44,418 $116,290  $49,446
                                  ========= ======== ======== ========
Net income per share:
 Basic                                $0.87    $0.61    $1.46    $0.68
                                  ========= ======== ======== ========
 Diluted                              $0.85    $0.58    $1.42    $0.65
                                  ========= ======== ======== ========
Weighted-average number of shares
 used in per share calculations:
 Basic                               79,877   72,596   79,468   72,472
                                  ========= ======== ======== ========
 Diluted                             82,004   76,089   81,806   75,740
                                  ========= ======== ======== ========

                  FIRST SOLAR, INC. AND SUBSIDIARIES

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

                                                June 28,  December 29,
                                                  2008        2007
                                               ---------- ------------
                                ASSETS
Current assets:
 Cash and cash equivalents                       $511,244     $404,264
 Marketable securities -- current                 121,760      232,686
 Accounts receivable, net                          49,994       18,165
 Inventories                                      106,902       40,204
 Deferred project costs                             1,407        2,643
 Economic development funding receivable              897       35,877
 Deferred tax asset, net -- current                14,184        3,890
 Prepaid expenses and other current assets         32,185       64,780
                                               ---------- ------------
   Total current assets                           838,573      802,509
Property, plant and equipment, net                674,268      430,104
Deferred tax asset, net -- noncurrent              55,279       51,811
Marketable securities -- noncurrent                28,208       32,713
Restricted investments                             29,950       14,695
Goodwill                                           33,829       33,449
Other assets -- noncurrent                         15,023        6,031
                                               ---------- ------------
   Total assets                                $1,675,130   $1,371,312
                                               ========== ============
                 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                 $42,483      $26,441
 Income tax payable                                51,197       24,487
 Accrued expenses                                 120,526       81,438
 Short-term debt                                       --       24,473
 Current portion of long-term debt                 24,629       14,836
 Other current liabilities                         40,414       14,803
                                               ---------- ------------
   Total current liabilities                      279,249      186,478
Accrued collection and recycling liabilities       23,567       13,079
Long-term debt                                    108,547       68,856
Other liabilities -- noncurrent                    13,166        5,632
                                               ---------- ------------
   Total liabilities                              424,529      274,045
Stockholders' equity:
 Common stock, $0.001 par value per share;
  500,000,000 shares authorized; 80,037,993
  and 78,575,211 shares issued and outstanding
  at June 28, 2008 and December 29, 2007,
  respectively                                         80           79
 Additional paid-in capital                     1,127,247    1,079,775
 Accumulated earnings                             129,185       12,895
 Accumulated other comprehensive income (loss)    (5,911)        4,518
                                               ---------- ------------
   Total stockholders' equity                   1,250,601    1,097,267
                                               ---------- ------------
   Total liabilities and stockholders' equity  $1,675,130   $1,371,312
                                               ========== ============

SOURCE: First Solar, Inc.

First Solar, Inc.
Jens Meyerhoff
Chief Financial Officer
602-414-9315
investor@firstsolar.com
Larry Polizzotto
Vice President, Investor Relations
602-414-9315
lpolizzotto@firstsolar.com

Copyright Business Wire 2008

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