PV Crystalox Solar, initially established in the UK in 1982, is a highly
specialised supplier to the world's leading solar cell manufacturers, producing
multicrystalline silicon ingots and wafers for use in solar electricity
generation systems. The Group was one of the first to develop multicrystalline
technology on an industrial scale, setting the industry standard for ingot
production.


The Group manufactures silicon ingots in Oxfordshire, United Kingdom, with the
majority of its output shipped to Japan, where it is sold either as ingots or as
wafers after processing by a sub-contractor. The balance of its output is
processed into wafers for European customers at the Group's facilities in
Erfurt, Germany.


In 2006 the Group produced silicon wafers and ingots corresponding to a solar
electricity generation capacity of 215 MWp. As at the end of 2006 the Group had
available production capacity equivalent to 288 MWp and employed around 200
staff. The Group has an established record of delivering strong financial
performance. The Group recorded revenues of 242 million and pre-tax profits of
49 million for the year, an increase of 32% and 56% respectively on the
previous year. The Group has been consistently profitable over the last five
years, and has trebled its sales over that period.


PV Crystalox Solar intends to use the proceeds from the listing to help fund the
construction and development of its own polysilicon production facility in
Bitterfeld, Germany to provide greater flexibility in sourcing its silicon
feedstock, as well as the expansion of the Group's existing business. The
facility, which will require fixed capital investment of approximately 80
million, is expected to commence operation in 2009 and be producing 1,800 metric
tonnes of polysilicon in 2011. Subject to fulfilling certain conditions, the
Group is eligible for government grants of 20 million.

http://www.crystalox.com/

Company highlights and financials

http://www.crystalox.com/ViewProspectus.aspx

The Group is proposing to develop its own polysilicon production facility in Germany in order to secure an on-going low-cost source of supply for a significant additional portion of its expected future silicon feedstock requirements. This facility is expected to commence production in 2009.

Dividend policy

The Directors intend to adopt a progressive dividend policy which is consistent with the Groups cash flow requirements and growth prospects. Had the Companys shares been admitted to trading throughout the 2006 financial year, the Directors believe they would have declared dividends representing 33 per cent. of net
profit for that year. The Directors intend that the interim and final dividends in respect of each year ending 31 December will be paid in October of that year and May of the following year in the approximate proportions of 1⁄3 and 2⁄3 of the total annual dividend respectively.

The first dividend to be declared by the Company following Admission is expected to be a dividend in respect of the financial year ending 31 December 2007 to be paid in May 2008. It is anticipated that this dividend would represent the final proportion only of the dividend that the Directors would have expected to recommend had the Company been listed for the whole of the year.