Forward Looking Statements

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Forward Looking Statements

This presentation contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The

forward-looking statements in this presentation do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with the company's business involving the company's products, their development and distribution, economic and competitive factors and the company's key strategic relationships, and other risks detailed in the company's filings with the Securities and Exchange Commission. First Solar assumes no obligation to update any forward-looking information contained in this presentation or with respect to the announcements described herein.

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CONFIDENTIAL

Michael Ahearn

President & Chief Executive Officer President & Chief Executive Officer

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99MW 60MW 21MW 6MW 2MW 2003 2004 2005 2006 Q4'06 Run Rate

Introduction

Formed to build a technology platform capable of reducing solar electricity costs to levels competitive with conventional electricity

Realizing Economies of Scale

Key Milestones:

}Formed in 1999 by True North Partners

}Goal: Near-term path to conventional energy parity }Lowest cost PV manufacturer

in the world

$1.59/W $2.94/W

$1.40/W

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Introduction

Proprietary process revolutionizes production platform

9 99% reduction in high-cost semiconductor material

9 Fully integrated, continuous process vs. batch processing 9 Large (2’x4’) substrate vs. 6” wafers Cell Definition Final Assembly & Test Deposition Glass in

Polysilicon Ingot Wafer Solar Cell Solar Modules

Module out

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Introduction

Source: Company filings, Wall Street research and Solarbuzz.

Note: Data based on last available quarter. x-Si pricing data based on Suntech’s disclosed module pricing.

~1.25 ~2.40 x-Si FSLR 20.8% 24.4% 19.2% 22.8% 48.6% FSLR STP ENER SPWR ESLR x-Si FSLR ~ $2.75 $1.25

Significant Cost Per Watt Advantage Pricing Power (ASP $ / W)

Lower Capex ($MM / MW) Superior Gross Margin

$2.45 $3.64

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Introduction

$1.25/W

90 Watts

$113.00

First Solar

$2.70/W

130 Watts

$351.00

13%

Poly x-Si Cost/Watt Module Wattage/ Sq Meter Module Cost / Sq Meter Efficiency

/

=

Competitive cost/watt advantage achieved despite current delta in conversion efficiency

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Introduction

$3.73 [1] $3.42 [1] $2.35 [3] $2.43 [2] x-Si First Solar

Leading the industry to pricing power competitive with conventional electricity

1) x-Si module pricing based on Suntech’s 2005 and 6 mo. 2006. 2) Jan 1, 2005 through Dec 31, 2005.

3) Year Ended December 30, 2006. }Targeting conventional electricity over 2010 -2012 }~$2.6BN long-term sales contracts }Rapidly expanding capacity 2006 - 75MW 2007 - 175MW 2008 - 275MW Pricing Power $2.00 $3.00 $4.00 $1.00 $ / Watt 2005 2006 2010 2012

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Investment Highlights

Global Mass Market Opportunity

Strong Market Position Superior Technology Manufacturing Excellence 1 3 2 4

Compelling Financial Model

6

High Performing Team

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Global Mass Market Opportunity

}Increasing market incentive programs in EU, U.S. and Asia

}Shortage of polysilicon supply

}Customers seeking multi-year volume visibility at viable price points

Subsidy markets provide an opportunity to rapidly increase volumes and reduce cost

598 1,086 1,460 1,600 1,795 2,255 2003 2004 2005 2006 2007 2008 2003-2 008 CA GR: 3 0%

Annual PV Installations (in MW)

Source: Solarbuzz. $9.8B $7.0B $3.8B $11.0B $11.3B $14.5B

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Global Mass Market Opportunity

Using subsidized markets to migrate from large to smaller applications

Turnkey PV System Price

$3.00/W Wholesale Distributed Generation Commercial Residential Off Grid Subsidized Non-subsidized Non-subsidized Non-subsidized Subsidized Subsidized

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Superior Technology

CdTe Attributes:

}Superior light absorption properties }Suited for robust / high volume

manufacturing

}Capable of relatively high efficiency, stable modules

}Available in TW level production quantities

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Superior Technology

Process technology created in reaching high scale production: }Over 90 U.S. / foreign

patents granted and pending

}Substantial trade

secrets / know-how surrounding process, device design and product packaging

}Proprietary equipment

designs

}Exclusive relationships

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Superior Technology

First Solar’s technology is early in the maturation cycle and has significant “headroom” for continued efficiency improvements

Program Plan Program Potential

16.5% NREL Cell Efficiency

14.5% First Solar Cell Efficiency }Theoretical efficiencies

equivalent to poly crystalline silicon devices

}Efficiency programs in place in excess of plan requirements

Efficiency Improvement: Plan / Potential

Current Collection Carrier Transport Light Collection Baseline

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Superior Technology

Proven track record of translating development programs into higher production conversion efficiencies

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% Modules Produced Conversion Efficiency

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Manufacturing Excellence

Infrastructure in place to support rapid and efficient growth in production volumes

Ohio Base Plant Ohio Expansion German Facility Asia Facility

2005 2006 2007 2008+ 25 25 50 25 50 100 25 50 100 100 50MW Ohio Expansion successfully ramped in Q3 – 40% GM }Proven replication in Ohio }Continuous improvement methodologies }“Copy Smart” replication process 75MW 175MW 275MW

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Capacity Expansion Plan

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Base Plant

Ohio Expansion QUAL

Germany Go

Asia Plant Go QUAL Ramp

Construction QUAL Construction Ramp 2008 2006 2007 Ramp

Ohio Expansion:

}Ahead of schedule

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Strong Market Position

Channel strategy designed for sustainable market leadership

}Strong Market Position in Germany

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103 145 156 164 174 50 55 64 71 254 50 59 75 80

Orig Contract Puts Excercised New w/volume

2007 2008 2009 2010 2011 2012

Strong Market Position

Objectives Long Term Contracts

103

MW 195MW 262MW 287MW 320MW 334MW

}Repay new plant investment }Strengthen competitive

position

}Geographic market expansion

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Strong Market Position

Germany

Spain U.S.

Greece France South Korea Italy

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Strong Market Position

Pricing strategy that maximizes risk-adjusted returns

Strategy

}Price floor set by return on investment targets

}Currently “long” in the

market for strategic reasons

ASP

Contract Term (years)

0-1 2-3 5 +

Sales Under Contract

<25 MW

>1 GW

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Financial Model

–

20% RONA

Gross margin Operating Expense Production start-up Operating margin Stock Based Comp

2004 2004 (39.4%) (39.4%) 78.0% 78.0% 6.6% 6.6% (124%) (124%) 8.4% 8.4% 2005 2005 34.5% 34.5% 37.9% 37.9% 6.6% 6.6% (10.0%) (10.0%) 10.2% 10.2% Target Target 35 35––40%40% 8 8––12%12% 2 2––3%3% 25% 25% 2 2––4%4% 2006 2006 40.2% 40.2% 29.4% 29.4% 8.7% 8.7% 2.1% 2.1% 8.8% 8.8% Q4’06 Q4’06 48.6% 48.6% 23.9% 23.9% 7.5% 7.5% 17.2% 17.2% 7.1% 7.1%

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Summary

Global Mass Market Opportunity

Strong Market Position Superior Technology Manufacturing Excellence 1 3 2 4

Compelling Financial Model

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High Performing Team