Evergreen Solar Implements a 1-for-6 Reverse Stock Split

Evergreen Solar, Inc. announced that it will effect the 1-for-6 reverse stock split previously approved by the company’s stockholders at the annual meeting of stockholders on July 27, 2010.

The 1-for-6 reverse split of the company’s common stock was effective at 12:01 a.m. Eastern Standard Time, on Saturday, Jan. 1, 2011. Due to the reverse stock split, Evergreen Solar’s common stock will trade under a new CUSIP number, 30033R306, and will temporarily trade under the symbol “ESLRD” for 20 trading days beginning Jan. 3, 2011, after which time the symbol will revert to “ESLR.”

The reverse split will reduce the number of outstanding shares of the Company’s common stock from approximately 209 million shares to approximately 35 million shares.

The reverse stock split is being completed as part of the company’s comprehensive recapitalization plan, which, if fully executed, will:

• Substantially reduce the company’s outstanding indebtedness and annual interest expense;
• Exchange a substantial portion of the company’s existing convertible debt for new debt with longer maturities and lower conversion prices;
• Create a capital structure that should provide greater incentive to convertible debt holders to convert their notes into shares of the company’s common stock, which would further accomplish Evergreen Solar’s goal of substantially reducing outstanding debt; and
• Enhance the company’s flexibility to manage its business by eliminating certain restrictive covenants and the security interests contained in existing debt instruments.