947397--2/27/2007--EVERGREEN_SOLAR

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{cost, operation, labor}

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, share}

{product, liability, claim}

{regulation, government, change}

{control, financial, internal}

{acquisition, growth, future}

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{cost, regulation, environmental}

{personnel, key, retain}

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We have a history of losses, expect to incur substantial further losses and may not achieve or maintain profitability in the future, which may decrease the market value of our stock. We may need to raise significant additional capital in order to fund our operations and to continue to grow our business, which subjects us to the risk that we may be unable to maintain or grow our business as planned and that our stockholders may be subject to substantial additional dilution. Our ability to expand our manufacturing capacity and therefore to increase revenue and achieve profitability depends to a large extent upon the success of EverQ. EverQ is subject to numerous risks, many of which are outside of our control, and we cannot assure you that EverQ will achieve its objective or otherwise be successful. If EverQ is not successful, our business would be materially and adversely harmed and our stock price would decline. Our future success substantially depends on our ability to significantly increase our manufacturing capacity through the development of additional manufacturing facilities. We may be unable to achieve our capacity expansion goals, which would limit our growth potential, impair our operating results and financial condition and cause our stock price to decline. Because we depend on a limited number of suppliers for a number of specialized materials, including silicon and string, necessary to manufacture our solar power products, we are susceptible to supplier and industry-wide supply shortages and price volatility, which could adversely affect our ability to meet existing and future customer demand for our products and cause us to make fewer shipments, generate lower than anticipated revenues and manufacture our products at higher than expected costs. Our dependence on a limited number of third party suppliers for raw materials, key components for our solar power products and custom-built equipment for our operations could prevent us from delivering our products to our customers within required timeframes, which could result in order cancellations and loss of market share. We may fail to successfully bring to market our new solar power products under development, which may prevent us from achieving increased sales and market share. Our solar power products may not gain market acceptance, which would prevent us from achieving increased sales and market share. Technological changes in the solar power industry could render our solar power products uncompetitive or obsolete, which could reduce our market share and cause our sales to decline. Our ability to increase market share and sales depends on our ability to successfully maintain our existing distribution relationships and expand our distribution channels. We face risks associated with the marketing, distribution and sale of our solar power products internationally, and if we are unable to effectively manage these risks, it could impair our ability to expand our business abroad. Our dependence on a small number of resellers may cause significant fluctuations or declines in our product revenues. Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share. Our success in the future may depend on our ability to establish and maintain strategic alliances, and any failure on our part to establish and maintain such relationships could adversely affect our market penetration and revenue growth. The success of our business depends on the continuing contributions of our key personnel and our ability to attract and retain new qualified employees in a competitive labor market. We may be affected by skilled labor shortages and labor disputes. Extended business interruption at our manufacturing facilities could result in reduced sales. The reduction or elimination of government subsidies and economic incentives for on-grid applications could cause our revenues to decline. If solar power technology is not suitable for widespread adoption or sufficient demand for solar power products does not develop or takes longer to develop than we anticipate, our sales would not significantly increase and we would be unable to achieve or sustain profitability. We face intense competition from other companies producing solar power and other energy generation products. If we fail to compete effectively, we may be unable to increase our market share and sales. If we are unable to protect our intellectual property adequately, we could lose our competitive advantage in the solar power market. If we are subject to litigation and infringement claims, they could be costly and disrupt our business. We may be unable to adequately protect or enforce our proprietary information, which may result in its unauthorized use or reduced sales or otherwise reduce our ability to compete. Existing regulations and changes to such regulations may present technical, regulatory and economic barriers to the purchase and use of solar power products, which may significantly reduce demand for our products. Compliance with environmental regulations can be expensive, and noncompliance with these regulations may result in adverse publicity and potentially significant monetary damages and fines. Product liability claims against us could result in adverse publicity and potentially significant monetary damages. Risks Related to Our Common Stock Substantial leverage and debt service obligations may adversely affect our cash flows. The price of our common stock has been volatile. Because we do not intend to pay dividends, stockholders will benefit from an investment in our common stock only if it appreciates in value.

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947397--2/27/2007--EVERGREEN_SOLAR_INC