Etrion Releases First Quarter 2014 Results

May 8, 2014, Geneva, Switzerland – Etrion Corporation (“Etrion” or the
“Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, today
released its condensed consolidated interim financial statements and related
management’s discussion and analysis (“MD&A”) for the three months ended March
31, 2014.

Operational Highlights

  · Production: Produced 16.5 million (2013: 16.0 million) kilowatt hours
(“kWh”) of solar electricity from 17 solar power plants in Italy during the
three months ended March 31, 2014.

  · Construction: Started construction of the 70 megawatt (“MW”) solar park in
northern Chile (“Project Salvador”) being built by SunPower Corporation and
owned initially 70% by Etrion, 20% by Total S.A. and 10% by Solventus Energías
Renovables. Project Salvador is scheduled to be fully operational by Q1 2015.

  · Development: Partnered with Hitachi High-Technologies Corporation (“HHT”), a
subsidiary of Hitachi, Ltd., to develop utility-scale solar power plants in
Japan. Etrion and HHT secured the Feed-in-Tariff (“FiT”) of ¥40 (US$0.38) per
kWh and executed land agreements for two projects, Shizukuishi and Mito, with a
combined capacity of 34 MW, owned 85% by Etrion and 15% by HHT. Etrion and HHT
are currently negotiating project financing for these projects with a Japanese
bank and expect to start construction this year. The project pipeline in Japan
is expected to reach at least 100 MW of solar power generation facilities under
construction or shovel-ready by 2015.

Financial Highlights

  · Revenue: Generated revenues of US$8.4 million (2013: US$8.3 million) during
the three months ended March 31, 2014.

  · EBITDA: Recognized earnings before interest, taxes, depreciation and
amortization (“EBITDA”) of US$3.7 million (2013: US$4.7 million) and adjusted
EBITDA of US$4.6 million before extraordinary expenses during the three months
ended March 31, 2014.

  · Equity Financing: Completed an equity financing in January 2014 of
approximately US$80 million through a private placement of 124,633,571 new
common shares issued at SEK 4.15 (approximately CAD$0.70) per share.

  · Bond Financing: Completed a bond issue in April 2014 of €80 million in
senior secured bonds in the Norwegian bond market at 8.0% annual interest with
bullet maturity in April 2019. The net proceeds from the bond issue will be used
to redeem the existing €60 million corporate bonds on May 19, 2014, as well as
for general corporate purposes.

  · Cash and Working Capital: Closed the first quarter of 2014 with a cash
balance of US$124.1 million (December 2013: US$94.9 million) and positive
working capital of US$30.4 million (December 2013: US$47.5 million).

Management Comments

Marco A. Northland, the Company’s Chief Executive Officer, commented, “We
significantly strengthened our balance sheet in the first quarter through the
equity placement and bond issue, raising gross proceeds of more than US$185
million. We are fully funded for the 70 MW Project Salvador in Chile plus the
equity commitments for our initial 34 MW in Japan, and we have additional cash
to accelerate our growth. The financial results for the first quarter of 2014
demonstrate once again the reliability of our 60 MW Italian portfolio with
strong revenues and cash flows. In Chile, construction of Project Salvador is on
track and will likely be completed ahead of schedule. In Japan, we expect to
secure bank financing for our first projects by August.”

Results

During the three months ended March 31, 2014, Etrion reported a net loss of
US$8.2 million (loss per share of US$0.03) compared to a net loss of US$5.5
million (loss per share of US$0.03) for the comparable period of 2013. The net
results for the first quarter of 2014 were adversely impacted by a decrease in
the spot market price in Italy and non-recurring operating and general
administrative expenses.

Earnings Call

A conference call/webcast to present the Company’s first quarter 2014 results
will be held on Friday, May 9, 2014, at 10:00 a.m. Eastern Daylight Time (EDT) /
4:00 p.m. Central European Summer Time (CEST).

Dial-in details:

North America: +1-647-788-4922 / Toll Free: +1-877-223-4471 / Sweden Toll Free:
02-079-4343

Webcast:

A webcast will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=172032

In addition, the conference call presentation and the Company’s interim
financial statements for the three months ended March 31, 2014, and related
documents will be available on the Company’s website at www.etrion.com.

A replay of the telephone conference will be available until June 9, 2014.

Replay dial-in details:

North America: +1-416-621-4642 / Toll Free: +1-800-585-8367

Pass code for replay: 15897258

About Etrion

Etrion Corporation is an independent power producer (IPP) that builds, owns and
operates utility-scale solar power generation plants. Etrion owns 17 solar power
plants in Italy with approximately 60 MW of installed capacity and is developing
greenfield solar power projects in Chile and Japan. The Company is listed on the
Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden
under ticker symbol “ETX”. Etrion’s largest shareholder is the Lundin family,
which owns approximately 24% of the Company’s shares directly and through
various trusts.

For additional information, please visit the Company’s website at www.etrion.com
or contact:

Pamela Chouamier – Investor Relations

Telephone: +41 (22) 715 20 90

Note: The capacity of power plants in this release is described in approximate
megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak
(“MWp”).

Etrion discloses the information provided herein pursuant to the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication in Sweden at 22:00 Central European
Summer Time on May 8, 2014.

Non-IFRS Measures:

This press release includes non-IFRS measures not defined under IFRS,
specifically EBITDA, adjusted EBITDA and adjusted net income/loss before non
-recurring and non-cash items. Non-IFRS measures have no standardized meaning
prescribed under IFRS and therefore such measures may not be comparable with
those used by other companies.

Adjusted net income/loss before non-recurring and non-cash items represents the
Company’s performance during the period/year on a cash-flow basis, excluding non
-cash items, such as depreciation and amortization, share-based compensation and
fair value movements associated with derivative financial instruments and non
-recurring items, such as other income/expenses. Adjusted net income/loss before
non-recurring and non-cash items and EBITDA are useful metrics to quantify the
Company’s ability to generate cash before extraordinary and non-cash accounting
transactions recognized in the financial statements. In addition, EBITDA is
useful to analyze and compare profitability between companies and industries
because it eliminates the effects of financing and accounting policy decisions,
while adjusted EBITDA is useful to perform the analysis by excluding also
expense items that are expected to not be recurrent. Refer to Etrion’s MD&A for
the three months ended March 31, 2014, for a reconciliation of the adjusted net
income before non-recurring and non-cash items reported during the period/year.

Forward-Looking Information:

This press release contains certain “forward-looking information”. All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements relating to
solar electricity revenue which is subject to confirmation of both the
applicable feed-in-tariff (“FiT”) to which the Company is entitled by the state
-owned company Gestore Servizi Energetici and the applicable spot market price
by the local utilities for electricity sales to the national grid and statements
relating to the anticipated timing for the Company’s development projects in
Chile and Japan and the Company’s growth targets for Japan) constitute forward
-looking information. This forward-looking information reflects the current
expectations or beliefs of the Company based on information currently available
to the Company as well as certain assumptions including, without limitation,
confirmation of the applicable FiT and spot market price for electricity sales,
the ability of the Company to obtain all required permits in a timely fashion
and to obtain project financing on economic terms and the ability of the Company
to identify and acquire additional solar power projects. Forward-looking
information is subject to a number of significant risks and uncertainties and
other factors that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking information, and even if
such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ materially
from current expectations include, but are not limited to, the lack of
confirmation or reduction of the applicable FiT and the spot market price for
electricity sales by the designated entities, uncertainties with respect to the
receipt or timing of all applicable permits for the development of projects, the
risk that the Company may not be able to obtain project financing on economic
terms and the risk that the Company may not be able to identify and/or acquire
additional renewable energy projects on economic terms.

Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward
-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.