Etrion Releases Second Quarter 2011 Interim Financial Statements

Etrion Releases Second Quarter 2011 Interim Financial Statements

August 10, 2011, Geneva, Switzerland - Etrion Corporation (“Etrion” or
the “Company”) (TSX: ETX) (OMX: ETX), an independent solar power
producer, today released its condensed consolidated interim financial
statements and related management discussion and analysis (“MD&A”) for
the three and six months ended June 30, 2011.

Second Quarter 2011 Highlights

  · Produced 29.3 million and 42.1 million kilowatt-hours (“kWh”) of
solar electricity from five solar power projects (Cassiopea, Centauro,
Etrion Lazio, Helios ITA and SVE) during the three and six months ended
June 30, 2011, respectively.
 
  · Generated solar electricity revenue of US$17.8 million and US$25.1
million during the three and six months ended June 30, 2011,
respectively.
 
  · Recognized a positive adjusted EBITDA for the renewable energy
segment of US$16.6 million and US$22.5 million during the three and six
months ended June 30, 2011, respectively.
 
  · Commenced construction of the 10 megawatt (“MW”) Helios ITA-3 and
2.6 MW Nettuno solar power projects, both expected to be connected to
the electricity grid in the third quarter of 2011.
 
  · Issued US$87 million (€60 million) of corporate bonds in the
Norwegian bond market at 9% annual interest with a 4-year maturity.
 
  · Repaid the outstanding principal and interest associated with the
US$87 million (€60 million) credit facility provided by a subsidiary of
Lundin Petroleum AB.

Management Comments

Marco Northland, the Company's CEO, commented, “With a fully-funded
solar portfolio of 60 MW, Etrion has substantial revenues and cash flows
from operations. Our solar parks have been producing almost 10% above
budget, and we look forward to increasing cash flow as we add additional
capacity.”

Second Quarter 2011 Results

For the three and six months ended June 30, 2011, the Company reported a
net loss of US$2.1 million (loss per share of US$0.01) and US$3.6
million (loss per share of US$0.02), respectively, compared to a net
loss of US$4.2 million (loss per share of US$0.03) and US$7.7 million
(loss per share of US$0.05), respectively, for the comparable periods in
2010. The Company generated its first revenues from the sale of solar
electricity in June 2010.

At June 30, 2011, the Company had 187,536,120 common shares outstanding
and a cash balance of US$45.2 million.

About Etrion

Etrion Corporation acquires, develops, builds, owns and operates solar
power plants. Etrion currently owns 47.2 MW of operational, ground-based
solar photovoltaic (PV) power plants and has 12.6 MW under construction
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 25% of the
Company's shares through various trusts.

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

Garrett Soden - Chief Financial Officer
Telephone: +41 (22) 715 20 90

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 Company's cash flow increase and
certain information 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 utility for
electricity sales to the national grid) 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
finance and develop its existing pipeline of solar projects to increase
cash flow and  confirmation of the applicable FiT and spot market price
for electricity sales. 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 projects may not be developed on suitable terms and
the lack of confirmation or reduction of the applicable FiT and the spot
market price for electricity sales by the designated entities.

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.