Summary of first quarter results:

-- Net sales of $214.0 million

-- Gross profit of $19.7 million (9.2% of net sales)

-- Earnings of $0.01 per share__

-- Cash and investment balances of $1.3 billion__

The company reported first quarter 2009 net sales of $214.0 million, which represents a decrease of 49.7% from fourth quarter 2008 net sales of $425.7 million, and a decrease of 57.3% from first quarter 2008 net sales of $501.4 million. The sequential decrease in sales was primarily the result of lower wafer volumes for both semiconductor and solar applications and lower prices associated with semiconductor and solar products.

Gross profit in the quarter was $19.7 million, or 9.2% of net sales, compared to $193.0 million, or 45.3% of net sales, in the 2008 fourth quarter and $259.3 million, or 51.7% of net sales, in the 2008 first quarter. The sequential decline in gross profit was primarily the result of lower product volumes, significant underutilization charges associated with abnormally low factory utilization rates and lower pricing for semiconductor and solar products.

The company reported an operating loss during the quarter of $26.4 million, which compares to operating income of $164.8 million in the 2008 fourth quarter and $218.4 million in the 2008 first quarter. First quarter 2009 operating expenses, which include charges of $6.7 million relating to the previously announced layoffs in three of the company's manufacturing facilities, were $46.1 million, or 21.5% of sales, compared to $28.2 million, or 6.6% of sales, in the 2008 fourth quarter, and $40.9 million, or 8.2% of sales, in the 2008 first quarter. Fourth quarter 2008 operating expenses included a benefit of $15.5 million relating to the forfeiture of stock options previously disclosed.

Net income for the first quarter, including a tax benefit of $18.9 million, was $2.0 million, or $0.01 per share, and includes a $0.1 million charge relating to the decrease in the value of the Suntech warrants. In previous quarters the company presented non- GAAP EPS figures which adjusted GAAP EPS figures for the company's estimated cash tax rate. Due to the company's belief that normalized GAAP tax rates will more closely approximate cash tax rates in the future, and therefore that GAAP and non-GAAP figures will be essentially the same, the company no longer intends to provide separate non-GAAP figures related to tax matters.

During the first quarter, the company consumed operating cash of $14.6 million, compared to operating cash flow generated of $123.0 million in the 2008 fourth quarter. Capital expenditures for the first quarter totaled $53.2 million, or 24.9% of sales. Free cash (operating cash flow minus capital expenditures) consumed was $67.8 million. MEMC ended the first quarter with cash and investments of $1.3 billion, and does not maintain any significant debt.

"Our first quarter results reflect a continuation of what has been an unprecedented reduction in demand in the semiconductor and solar industries," said Ahmad Chatila, MEMC's President and Chief Executive Officer. "The weak end demand for semiconductor and electronic products, as well as continued inventory reduction efforts by our customers, resulted in our semiconductor wafer factories running at abnormally low levels in the first quarter, creating a significant drag on our financial results."

"Since my appointment as CEO on March 2, I have been assessing the company's global operations and meeting personally with many current and prospective customers and suppliers as well as hundreds of MEMC employees around the world. Feedback from many of our customers regarding our products and capabilities has been very positive. MEMC has some of the best R&D capabilities and product and patent portfolios in the business."

"While MEMC has been very efficient and profitable for a number of years, there continue to be a great deal of cost savings opportunities available to the company. In the near-term, we have taken the unfortunate but necessary step of reducing staffing levels to better align with anticipated steady-state levels of demand in the semiconductor industry. Once completed, this will provide annualized cost savings to the company of approximately $30 million, beginning in the third quarter. During the first quarter we also began to introduce our customers to our new facility in Ipoh, Malaysia. This facility will provide our customers with some of the industry's most advanced production capabilities while also allowing MEMC to reduce costs over the intermediate and longer-term."

"MEMC's strong financial position with $1.3 billion in cash and investments and essentially no debt enables us to provide our team with the technology, resources, and support needed to strengthen our competitive position for the long term.