No. 11 Quarterly report Q1 2011

(2010 figures in brackets)

The Solar Group saw revenue growth in Q1 2011 while EBITA matched 2010 levels. Expectations for EBITA in 2011 are adjusted downwards. Increased investments in Solar 8000 implementation. Investor meeting and webcast today at 10:30.

Solar's Q1 2011 revenue totalled € 359.8m, meaning that the company achieved revenue growth of 9.3%. Revenue matched the most recently announced expectations. Organic growth was 5.6% (-14.3%).

Certainly, this shows that the improvements in market conditions that the group saw in most markets in H2 2010 have carried over into Q1 2011.

EBITA was € 6.1m in Q1 2011 and so did not meet expectations, primarily due to unsatisfactory results in Norway and Germany. As expected, Solar's enterprises in Denmark, Sweden and the Netherlands presented improved EBITA figures compared with Q1 2010.

Solar 8000 (SAP) was implemented in Norway in September 2010. In the subsequent two quarters, the enterprise has focused on stabilising system operation and ensuring our customers stable supplies. This has resulted in an increase in inventories, a sharp rise in costs and reduced gross profit. These aspects will be addressed in future quarters but will lead to lower earnings than expected in 2011.

It is estimated that the transition to Solar 8000 (SAP) in Norway resulted in a total Q1 2011 loss in earnings of approximately € 3.5m.

Sales in Germany have also not developed as expected. One example is the solar cell market where sales went down by two thirds in Q1 2011.

Status on Solar 8000 roll-out
The total investment in Solar 8000 (SAP) implementation will be higher than originally estimated. The roll-out plan for the remaining major markets is ready and, despite the delays seen in Norway, we still expect to roll out the template in the four enterprises in the Netherlands, Denmark, Sweden and Germany by the end of 2012. A group SAP competence centre is currently being established in Poland to underpin future roll-outs.

Delays in implementation mean that the total investment is expected to increase from € 40m to € 55m.

Expectations for 2011
Expectations for 2011 remain revenue of between € 1,485m and € 1,525m. However, expectations for EBITA are changed from € 59-66m to € 45-52m.

This downward adjustment is the result of the increased costs for the roll-out of Solar 8000 (SAP), reduced earnings in Solar Deutschland and still lower earning levels in Solar Norge.

In the second half of April, activity levels in the markets where the group operates were very low, while levels in early May were normal.

Compared to 2010, expectations still correspond to organic growth between 3% and 6%.

Expectations now include Solar 8000 roll-out costs of € 7.0m against the previous € 5.0m.

Q1 presentation and webcast today
The presentation of quarterly report Q1 2011 will be held at Solar, Gammelager 14, Brøndby, Denmark, today at 10.30, and professional investors and analysts are welcome to participate.

Simultaneously, the presentation will also be broadcast as a webcast in English and will be available at www.solar.eu.

Yours faithfully,

Solar A/S

Flemming H. Tomdrup

Facts about Solar
Solar A/S (formerly Aktieselskabet Nordisk Solar Compagni) was established in 1919 and listed on the Copenhagen Stock Exchange in 1953. Solar is one of Northern Europe’s leading technical wholesalers within electrical, heating, plumbing and ventilation products. The group based in Kolding, Denmark, has subsidiaries operating under the Solar brand in Denmark incl. the Faroe Islands, Sweden, Norway, the Netherlands, Germany and Poland. Furthermore, Solar’s Aurora Group operates in Denmark, Sweden, Norway and Finland. In 2010, Solar's revenue totalled € 1,401.5m, corresponding to DKK 10.4bn. The group has approximately 3,000 employees.

For further information, go to: www.solar.eu

Enclosure: Quarterly report Q1 2011 pages 1-24