DGAP-News: Dyesol Limited: 2nd Quarter FY2012 - 4C Commentary & Update

DGAP-News: Dyesol Limited / Key word(s): Miscellaneous
Dyesol Limited: 2nd Quarter FY2012 - 4C Commentary & Update

01.02.2012 / 03:50

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Market Release - 31 January 2012

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Commentary and Update - 2nd Quarter FY 2012
R&D - Powering the Future

2011/12 continues to be a challenging year for solar stocks and smaller
technology companies world-wide.  However, there appears to be light at the
end of the tunnel with a number of analysts forecasting a turn-around in
the fortunes of solar companies, a reduction of commitment to solar farms
and a rapidly growing Building Integrated Photovoltaic (BIPV) market. Dye
Solar Cell technology is an excellent match for BIPV applications.

Dyesol's business model differs significantly from other solar companies,
however traditionally we have been grouped with conventional solar
companies in global stock market indices. In an effort to differentiate
Dyesol we have changed our concise company description to read:

Dyesol is a global supplier of Dye Solar Cell (DSC) materials, technology,
and know-how. DSC is a photovoltaic technology enabling metal, glass, and
polymeric based products in the building, transport and electronics markets
to generate energy and improve energy efficiency. Dyesol partners with
leading multi-national companies who possess significant market share and
established routes-to-market.

Our business model is demonstrated by working with partners such as Tata
and Pilkington, which are manufacturers of products that are readily
integrated into a diverse range of applications in the built environment.
In promoting Dyesol we state that we develop enhanced building products
that produce power, thereby lowering the building energy footprint and
increasing energy efficiency. We continue our substantial commitments to
these projects and are proud of the product development milestones achieved
this year and particularly in the recent quarter by our team in the UK.

R&D continues to be a primary focus in facilitating delivery of the key
milestones of our technology road map, which are crucial in supporting our
partnership projects. The scaling-up of production of each of our new
materials underpins the performance improvements achieved and is essential
for the commercialisation of the DSC enhanced products of our strategic
partners. Dyesol holds unique materials production technology being sought
by potential chemical manufacturing partners worldwide. As previously
announced Dyesol in Australia achieved a 15% improvement in efficiency
(6.9% to 8%) for industrial scale strip cells which are readily scalable.
Our collaborative program with the globally recognized Japanese National
Institute of Material Science (NIMS) on next generation dye structures is
bearing fruit with a record efficiency of 11.4% being achieved on test
cells incorporating dye combinations. The collaboration project with CSIRO
to develop new dye structures is entering a testing phase for the new
materials supplied under this contract.

The industrialisation of DSC on steel continues at the PV Accelerator in
Shotton, North Wales utilising the pilot production line. The 'Biggest'
project involved constructing a 20 square metre DSC roof array which is
currently under  evaluation. The 'Best' project involves demonstrating
performance enhancements and  durability validation. In the last quarter we
have demonstrated the design and industrial product area production process
for virtually eliminating use of expensive silver. In parallel, we
confirmed a 20% efficiency enhancement for a back lit device which also
showed doubling of power output at full sun conditions.

Following the successful installation of process equipment at the
Dyesol-Pilkington North America joint venture, Dyetec Solar, activity has
focussed on demonstrating equipment capability by producing large area
tiles and new glass technology development. The activity is proceeding on
time and within budget. This proof of concept phase precedes what is
expected to be a significant up-scaling of development activity in Toledo
during 2012.

During the quarter we completed installation of prototype manufacturing
systems for G Energy a company linked with Tsinghua University in China,
and for Acrosol in South Korea. In the Korean project, staff from the
Dyesol Timo JV assisted the installation and commissioning. While our focus
has been on partnership programs, these projects demonstrate Dyesol's
ability to provide system solutions to a range of clients and position
ourselves as an ongoing material and equipment supplier. In addition,
during this quarter we received an order from the leading Japanese
electronics company NEC for materials evaluation.  This is a further
demonstration of Dyesol's international reputation for technical excellence
in the DSC sector.

Dyesol has been active in Australia, and benefitted from Australian
government programs including the R&D Tax Rebate scheme and Enterprise
Connect which assists businesses such as Dyesol in developing their
business activities.  The visit of the Australian Prime Minister to Dyesol
HQ on 20th October was an extremely positive event, and greatly improved
Dyesol visibility within Government and has resulted in ongoing dialogue
with key relevant departments.

Dyesol introduced its new e-newsletter in December 2011. The aim of the
newsletter is to better inform our shareholders and other stakeholders of
Dyesol activities, DSC technology advancements and global trends. There was
a positive response to the newsletter and a significant number of new
subscribers gained. In addition, Dyesol has added a company YouTube channel
to share video content and enhance our online communications.

Preparation is underway to upgrade our American depositary receipt program,
now trading on the Over-The-Counter (OTC) Pink marketplace in the United
States, to the top tier of the OTC market - the OTCQX.  Once implemented,
this will significantly increase our information transparency to US
investors providing easier real time access to quotes, company
announcements and other disclosures. We also expect this to translate into
greater investment activity, especially as the activities in Toledo become
more widely known.

We have now completed the transition from the equity line of credit
agreement with SpringTree Special Opportunities Fund, LP to a new agreement
with Bergen Asset Management, LLC. The new facility was considered to offer
a number of improved features beneficial to Dyesol and its shareholders. 
Importantly, the facility provides access to flexible funding whilst the
Company develops its global commercialisation strategy and puts in place
strategic investments.

The net operating monthly burn rate for the second quarter was $900K in
line with Company expectations. At the end of the quarter cash was $2.67M
down from $4M at the end of the previous quarter with a new equity line of
credit available of up to $21.2M.  An R&D tax rebate of $0.73M was received
after the end of the quarter. The company continues to look at options to
lower cash burn while strengthening our technological leadership.


The Company - DYESOL Limited 
Dyesol is a global supplier of Dye Solar Cell (DSC) materials, technology
and know-how.  DSC is a photovoltaic technology enabling metal, glass and
polymeric based products in the building, transport and electronics sectors
to generate energy and improve energy efficiency.  Dyesol partners with
leading multinational companies who possess significant market share and
established routes-to-market.  The company is listed on the Australian
Stock Exchange (DYE), the German Open Market (D5I), and is trading on the
OTCBB (DYSOY) through its depositary BNY Mellon.  Learn more: 
www.dyesol.com  Subscribe to Mailing List and eNewsletter here.

The Technology - DYE SOLAR CELLS 
DSC technology can best be described as 'artificial photosynthesis' using
an electrolyte, a layer of titania (a pigment used in white paints and
tooth paste) and ruthenium dye deposited on glass, metal or polymer
substrates. Light striking the dye excites electrons which are absorbed by
the titania to become an electric current. Compared to conventional silicon
based photovoltaic technology, Dyesol's technology has lower cost and
embodied energy in manufacture, it produces electricity more efficiently
even in low light conditions and can be directly incorporated into
buildings by replacing conventional glass panels or metal sheets rather
than taking up roof or extra land area.

- Ends -

Media & Investor Relations Contacts:


Australia       Viv Hardy, Callidus PR   Tel:  +61 (0)2 9283 4113 or +61   
(0)411 208 951
Germany &       Eva Reuter, DR Reuter Investor Relations   Tel:  +49 177
605
Europe          8804
USA & the       Josh Seidenfeld, Antenna Group   Tel:  +1 415 977 1953,
Americas        dyesol@antennagroup.com
Dyesol          Angela Geary, Dyesol Brand Manager  Tel:  +61 (0)2 6299
Headquarters    1592,  ageary@dyesol.com


End of Corporate News

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154791 01.02.2012