Etrion Engages ABB for 10 MW Solar Project

GENEVA, SWITZERLAND--(Marketwire - June 8, 2011) - Etrion Corporation (TSX:ETX)(OMX:ETX) ("Etrion" or the "Company"), an independent solar power producer, today announced an agreement with ABB (NYSE:ABB)(OMX:ABB), a power and automation technology group, to complete Etrion's 10 MW Helios ITA 3 solar project under construction in the Puglia region of Italy. Etrion will own the power plants, and ABB will design, construct and provide operations and maintenance services for the parks.

Marco Northland, Etrion's CEO, commented, "We are pleased to engage ABB to proceed with our 10 MW project under construction following the recent Italian government decree clarifying incentives for new solar projects. Based on the new feed-in-tariff and the reduced contractor cost, we expect to maintain our original projected internal rate of return for this project."

The Helios ITA 3 project includes two 5 MW ground-mounted solar PV parks under construction, Brindisi and Mesagne, in the Puglia region of Italy. Construction of the project was voluntarily delayed in order to clarify the Italian feed-in-tariff applicable to projects connected after May 31, 2011. On May 5, 2011, the Italian government approved a decree establishing tariffs for new solar PV plants, and Etrion subsequently decided to proceed with ABB as the new contractor.

Construction of the Helios ITA 3 parks is expected to be completed by August 31, 2011. The first electricity sales from the project under the Italian feed-in-tariff regime are expected during the fourth quarter of 2011.

The Helios ITA 3 parks are expected to receive a feed-in-tariff of €0.25 per kilowatt-hour (kWh) plus the market price of approximately €0.08 per kWh. The Italian feed-in-tariff guarantees the purchase price for solar electricity by the Italian government for 20 years from the start of operations.

The 10 MW project is expected to produce 16.8 million kWh of electricity and €4.6 million of earnings to Etrion before interest, taxes, depreciation and amortization (EBITDA) per year.

In order to accelerate construction of the Helios ITA 3 project, Etrion has received a bridge loan of €28 million from the Company's major shareholder, the Lundin family. The bridge loan is interest-free and will mature one year after draw down. Etrion expects to repay the bridge loan upon final draw down of the project's existing non-recourse loan facility with Natixis, WestLB and Mediocreval following grid connection of the Helios ITA 3 solar parks. In consideration for providing the bridge loan, Etrion has issued 6.5 million common shares of the Company to Lundin family trusts.

About Etrion

Etrion Corporation develops, builds, owns and operates solar power plants. Etrion currently owns 47 megawatts (MW) of operational, ground-based solar photovoltaic (PV) power plants in Italy. The Company is listed on the Toronto Stock Exchange and the NASDAQ OMX Stockholm exchange (ticker symbol "ETX"). Etrion's largest shareholder is the Lundin family, which owns approximately 27% of the Company's shares through various trusts.

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 the expected date of completion of the Helios ITA 3 solar project and related date of repayment of the associated bridge loan, as well as statements relating to the feed-in-tariff expected to be received for the project and the expected amount of electricity and cash flow to be generated therefrom) 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, assumptions as to the ability of the Company to complete the construction of the Helios ITA 3 solar project in a timely manner. 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 risk that the Company experiences construction delays with respect to the Helios ITA 3 solar project.

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.