First Quarter 2009 Results   -- Net revenues for the quarter were $49.5 million, compared to net      revenues of $171.2 million for the first quarter of 2008 and $68.8      million for the fourth quarter of 2008.   -- Shipments for the quarter were approximately 18 MW, including 1.2 MW of      solar grade e-Modules and 1.6 MW of solar cells and specialty solar      application products.   -- Net loss for the quarter on a GAAP basis was $4.8 million, or $0.13 per      diluted share, compared to net income of $18.6 million, or $0.57 per      diluted share, for the first quarter of 2008 and net loss of $49.2      million, or $1.38 per diluted share, for the fourth quarter of 2008.   -- Non-GAAP net loss for the quarter was $0.10 per diluted share, compared      to non-GAAP net income of $0.64 per diluted share for the first quarter      of 2008 and non-GAAP net loss of $1.35 per diluted share for the fourth      quarter of 2008, in all cases excluding stock based compensation costs.   

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented: "Our results for the first quarter were in line with our expectations, as we continued to exercise prudent financial management in response to the global economic downturn and the resulting pressure on all levels of the solar industry value chain. We are working closely with our supply partners to make sure that our cost structure remains competitive. The Company ended the quarter with a strong, liquid balance sheet providing our customers and banking partners with confidence in our ability to honor our long term commitment to our products. We exercised a conservative shipment strategy in order to minimize channel inventory buildup. Consistent with our positive long-term view, over the past five months, we have doubled the size of our sales force, with further additions planned in Europe, North America and Asia. We have started to see success in our strategy as demonstrated by our increased sales into a few non- traditional markets such as Korea and China."

Arthur Chien, CFO of Canadian Solar, noted: "Cash and cash equivalents changed from $115.7 million as of December 31, 2008 to $92.6 million as of March 31, 2009. The change was primarily due to increases in working capital commitments and long-term prepayments. The moderate increase in inventories was attributable to support for anticipated customer sales over the next few quarters. Restricted cash increased from $20.6 million as of December 31, 2008 to $113.1 million as of March 31, 2009. The increase was mainly due to pledges of cash to support outstanding short-term borrowings."

                  Revenue by Geographical Location (US $ millions)    Region            Q1 2009             Q4 2008             Q1 2008                 Revenue      %      Revenue      %      Revenue      %   Europe          36.0    72.7%       52.8    76.8%      167.6    97.9%   Asia            10.8    21.8%        9.6    13.9%        2.4     1.4%   America          2.7     5.5%        6.4     9.3%        1.2     0.7%   Total           49.5     100%       68.8     100%      171.2     100%      Recent Developments   -- Based on an updated assessment of long-term demand for our solar      products and in order to improve our margin structure, we resumed the      Phase II expansion of our solar cell facility.  This is expected to      increase our total solar cell capacity from 270 MW to 420 MW by the      middle of Q3 2009.  We expect to spend approximately $18 million to      complete this expansion.    -- We plan to continue to expand our internal ingot capacity to 200 MW      from the current 120 MW to 150 MW level in order to better control the      supply chain and improve our margin structure.    -- We expect to maintain our module capacity at the current 620MW level.      We expect to stay on course with our flexible vertical integration      model and continue to strengthen strategic partnerships with our long-      term wafer and cell suppliers.  At the same time, the increased level      of internal ingot, wafer and cell capacity is expected to help us      improve our overall margin structure.    -- We successfully renegotiated our long-term supply contract with a major      Chinese polisilicon and wafer manufacturer.  The recently signed      amendment reduced our silicon and wafer purchase obligations for 2009      and reset the price to the current market level.  The amendment also      provided a flexible mechanism to allow both sides to adjust the price      for the future year according to market conditions.    -- We signed an amendment to the long term supply agreement with another      major China based wafer company to allow both sides to continue the      supply relationship on a basis that reflects current market conditions,      while also opening discussions on the long term supply contract between      the two companies.    -- As part of the Company's sales force growth, we are pleased to announce      that Mr. Yan Zhuang, will become our Vice President, Sales and      Marketing effective June 1, 2009.  He will resign from Canadian Solar's      Board of Directors where he has served as an independent director since      September 2007.  Mr. Zhuang has worked in corporate branding, sales and      marketing positions with, or provided consulting services to, a variety      of multinational companies for over 20 years.  He previously served as      Senior Vice President, Sales and Marketing, and Head of Asia for Hands-      on Mobile Ltd., a global media and entertainment company with Asian      operations in China, Korea and India.  Before joining Hands-on Mobile,      he held various marketing and business operation positions with      Motorola Inc., including as its Asia Pacific Regional Director of      Marketing Planning and Consumer Insight.  Mr. Zhuang founded and until      recently served as CEO of K's Media.  Mr. Zhuang holds a Bachelor of      Electrical Engineering degree from Northern Jiao-Tong University,      China, an MSc in Applied Statistics from the University of Alberta,      Canada and an MSc in Marketing Management from the University of      Guelph, Canada.    Outlook  

Within the first quarter, shipments increased sequentially month over month. This positive trend continued into Q2 and we expect further increases in Q3. Offsetting this positive trend, however, customers, especially those in United States, continue to face an uncertain financing environment. Additionally, recent inventory clearance efforts by some of our competitors have resulted in declining module ASPs, which may cause delays in project purchase decisions by customers.