Second Quarter 2009 Financial and Operating Highlights   -- Solar module shipments were approximately 64 MW, representing an      increase of 30.9% sequentially and 34.3% year-over-year.   -- Total net revenues were $150.0 million, representing an increase of      13.5% sequentially and a decrease of 26.5% year-over-year.   -- Gross margin was 27.4%, compared to 17.2% sequentially and 23.2%      year-over-year.   -- Operating income and operating margin were $18.6 million and 12.4%,      respectively, compared to $6.8 million and 5.2%, respectively, in the      first quarter of 2009.  Operating income includes a $5.0 million      write-off of accounts receivable.   -- Net income was $18.9 million, which included a foreign currency      exchange gain of $13.7 million, compared to a net loss of $10.6 million      in the first quarter of 2009.   -- Earnings per fully-diluted ADS was $0.71    

"We are very pleased with our performance in the second quarter and especially encouraged by the success of the recent follow-on public offering which demonstrates the market's confidence in Trina Solar and its leading high-quality low-cost positioning," said Jifan Gao, Chairman and CEO of Trina Solar. "We see market confidence returning to the PV sector due the strong government commitment to support clean energy technologies and an improvement in financing conditions. With greater visibility and a pickup in demand in the market we have therefore committed to capacity expansion by the end of the year in order to further leverage the benefits of our fully integrated business model."

   Recent Business Highlights   During the second quarter of 2009, the Company     -- increased its market share in growing PV markets such as the Benelux        market, reflecting a  diversification strategy that includes over 20        established and emerging PV markets, such as  Greece, the Czech        Republic, Australia and the United States.     -- maintained strong sales to project system integrators, which        currently represent more than half of the Company's total sales.     -- received continued strong support from established, multinational        customers in Spain, Italy and Belgium who are also actively        developing projects in Europe, North America and China.     -- submitted eight project proposals involving approximately 20 MW of        projects for national and provincial  subsidy programs in the PRC.     Subsequent to the second quarter of 2009, the Company     -- announced a sales agreement in July 2009 to supply PROINSO with up to        25 MW and 50 MW of PV modules in 2009 and 2010, respectively, to be        used for solar projects in the United States and major European        markets.     -- borrowed approximately $80 million in loans in July 2009 due on June        30, 2010 from a domestic bank to support its East Campus capacity        expansion project.     -- completed a follow-on public offering in August 2009 of 5,175,000        American depositary shares ("ADSs"), each representing 100 ordinary        shares of the Company.     -- selected by Renewable Ventures, a Fotowatio Company, to supply        modules for a two-MW PV project for Colorado State University in Fort        Collins, Colorado.     Net Revenues  

Trina Solar's net revenues in the second quarter of 2009 were $150.0 million, an increase of 13.5% sequentially and a decrease of 26.5% year-over-year, due to decline in module average selling price. Total shipments were 63.9 MW, compared to 48.8 MW in the first quarter of 2009 and 47.6 MW in the second quarter of 2008. The sequential increase in total shipments was primarily due to improved demand conditions in major European markets, improved customer access to PV system purchase financings and increasing number of government incentive programs for solar energy projects in Europe, North America and Asia. Net revenues include approximately $1.6 million of non-module income.

Gross Profit and Margin

Gross profit in the second quarter of 2009 was $41.2 million, compared to $22.7 million in the first quarter of 2009 and $47.4 million in the second quarter of 2008. Gross margin was 27.4% in the second quarter of 2009, compared to 17.2% in the first quarter of 2009 and 23.2% in the second quarter of 2008. The sequential and year-over-year improvements were due primarily to lower average silicon purchase prices. The Company continued to focus its efforts on reducing its manufacturing cost per watt through ongoing efficiency gains linked to improved supply chain management, including second sourcing options. Additional yield enhancements were achieved from manufacturing techniques involving proprietary process in our ingot, wafer, cell and module value areas, and higher cell conversion efficiencies.

Operating Expense, Income and Margin

Operating expenses in the second quarter of 2009 were $22.5 million. The Company's operating expenses accounted for 15.0% of net revenues in the second quarter of 2009, an increase from 12.0% in the first quarter of 2009 and an increase from 8.9% in the second quarter of 2008. The sequential increase as a percentage of revenue was primarily due to a $5.0 million write-off of accounts receivable. Operating expenses in the second quarter of 2009 included $0.9 million in share-based compensation expenses, compared to $1.0 million in the first quarter of 2009 and $1.0 million in the second quarter of 2008.

Operating income in the second quarter of 2009 was $18.6 million, compared to $6.8 million in the first quarter of 2009 and $29.1 million in the second quarter of 2008. Operating margin was 12.4% in the second quarter of 2009, compared to 5.2% in the first quarter of 2009 and 14.3% in the second quarter of 2008.

Net Interest Expense

Net interest expense in the second quarter of 2009 was $5.8 million, compared to $5.4 million in the first quarter of 2009 and $5.1 million in the second quarter of 2008 due to a decrease in interest income.

Foreign Currency Exchange

Foreign currency exchange gain was $13.7 million in the second quarter of 2009, compared to a $7.6 million loss in the first quarter of 2009 and a $6.1 million loss in the second quarter of 2008. This gain was primarily due to the appreciation of the Euro against the US dollar in the second quarter, the effect of which was partially reduced by the Company's utilization of foreign currency forward contracts to hedge its foreign currency risk exposure.

The Company continued foreign currency hedging during the second quarter of 2009 using foreign currency forward contracts between the Euro and the US dollar, with the goal of mitigating, to some extent, the effects of exchange rate volatility.

Net Income and EPS

Net income was $18.9 million in the second quarter of 2009, an increase from a $10.6 million loss in the first quarter of 2009 and a $17.1 million profit in the second quarter of 2008. Net income includes the impact of the approximate $5.0 million accounts receivable write-off and a foreign currency exchange gain of $13.7 million.