REC ASA - 3rd quarter 2008

Oslo, October 21, 2008: Renewable Energy Corporation ASA (REC) reported revenue of NOK 1,919 million in the third quarter 2008, an increase of 30 percent from NOK 1,480 million in the third quarter 2007. Revenues for the first nine months of 2008 were NOK 5,811, representing an increase of 22 percent.
 
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 711 million in the third quarter 2008, an increase of 11 percent from NOK 643 million in the third quarter 2007. The EBITDA margin of 37 percent in the third quarter 2008 compares with 43 percent in the same quarter last year. Nine months over nine months, the EBITDA increased one percent from NOK 2,324 in 2007 to NOK 2,342 million in 2008.
 
Mainly due to higher production and revenues, operating profit (EBIT) increased by nine percent to NOK 537 million in the third quarter 2008, compared with NOK 495 million in the same quarter last year. The EBIT margin of 28 percent was a down from 33 percent in the third quarter last year. For the first three quarters of 2008, EBIT declined four percent to NOK 1,833 million compared with NOK 1,911 million for the same period of 2007.
 
REC reported net financial items of NOK 1,224 million in the third quarter, including a positive effect of NOK 1,207 million on embedded derivatives. In the same quarter last year, net financial items were a negative NOK 438 million, including a loss on embedded derivatives of NOK 394 million.
 
Including these effects, profit before tax was NOK 1,761 million in the third quarter 2008, compared with NOK 57 million in the third quarter 2007. For the first three quarters of 2008 the profit before tax was NOK 2,797 million compared with NOK 1,362 in the same period 2007.
 
Earnings per share were NOK 2.52 in the third quarter 2008 and 3.95 year to date, compared with NOK 0.05 in the third quarter 2007 and 1.86 for the first nine months of 2007, on both a basic and diluted basis.
 
For more information, please see the attachments on www.newsweb.no

Morning program:
On the release day, Tuesday October 21, President and CEO Erik Thorsen of REC ASA will give a presentation and other members of the management team will also be present. The presentation will take place at 08:00 hrs Norwegian time/CET at the conference centre Oslo Konserthus, Munkedamsveien 14, 0250 Oslo (www.oslokonserthus.no).
 
The presentation, held in English, will be broadcasted live over the Internet, and can be accessed from: www.recgroup.com.
 
It will also be possible to listen to the presentation through a conference call. Please use one of the following numbers (conference ID, 7746948):
 
Norway free call: 800 196 40
UK free call: 0800 028 1299
USA free call: 1888 935 4577
International dial in: +44 (0)20 7806 1967
 
Afternoon program:
REC will further host an analyst conference call with possibilities for questions and answers later the same day at 15:00 CET. Please make sure to dial inn at least 5 minutes ahead of time to finalize your registration:
 
Norway free call: 800 80 119
International dial in: +47 23 00 04 00
 
Immediately after the call, a replay of the conference call will be made available. To access, please dial +47 67 89 40 91 and use the following procedure:
 
1. Type account number 1524 followed by # (pound-sign) and press 1
2. Continue by typing the conference number: 524 followed by # (pound-sign) and press 1 to play
 
 
For more information, please contact;
Jon Andre L√łkke, SVP & Investor Relation Officer, +47 907 44 949
 
About REC
REC is uniquely positioned as one of the most integrated companies in the solar energy industry. REC Silicon and REC Wafer are the world's largest producers of polysilicon and wafers for solar applications. REC Solar produces solar cells and solar modules and engage in project development activities in selected segments of the PV market. REC Group had revenues in 2007 of NOK 6,642 million and an operating profit of NOK 2,588 million. Please also see www.recgroup.com
 
Q3 2008 Results
Attachments:
Q3 2008 Results