WorldWater & Solar Technologies Announces Fourth Quarter Results

EWING, N.J.--(BUSINESS WIRE)--WorldWater & Solar Technologies Corp. (OTC BB:WWAT.OB), developer and marketer of proprietary high-horsepower solar systems, today announced results for the fourth quarter and twelve months ended December 31, 2007.

Revenue for the fourth quarter was $10.9 million, compared with $7.1 million reported in the fourth quarter of 2006 and $4.4 million in the third quarter of 2007. The increase in revenue was due primarily to the addition of several large contracts, including the Fresno Yosemite Airport. Some projects, however, including the Denver International Airport, were delayed due to logistical issues related to permitting and client finalization. Gross profit for the quarter was $0.6 million, versus $0.9 million in the prior-year period. Gross profit, and gross margins, were impacted by contract timing and startup costs tied to certain large projects currently underway. The Company’s net loss attributable to common shareholders for the fourth quarter of 2007 was $5.7 million, or $(0.03) per share, compared to a loss of $6.5 million, or $(0.04) per share, in the fourth quarter of 2006. The 2007 fourth quarter reflects additional investments in R&D, marketing, and operations to support WorldWater’s strategic growth initiatives.

For the twelve months ended December 31, 2007, WorldWater reported revenue of $18.5 million, compared with $17.3 million in 2006. Gross profit for the year was $1.7 million, versus $2.7 million in 2006. The net loss attributable to common shareholders for 2007 was $14.4 million, or $(0.09) per share, compared to a loss of $15.1 million, or $(0.11) per share, last year. In total, the Company installed 2.6 megawatts in 2007, versus 2.4 megawatts in 2006 and 275 kilowatts in 2005.

“2007 was, as expected, a pivotal year for WorldWater & Solar Technologies,” said Chairman Quentin T. Kelly. “We recorded our highest revenue ever – $18.5 million – and won some very large contracts, including innovative solar installations for the Denver International Airport and Fresno Yosemite Airport. In addition, we expanded our offices, hired critical staff, and signed letters of intent for a number of next-generation solar farms in Europe.

“More recently, since the start of 2008, we have seen several important events take place. We closed the acquisition of ENTECH, raised $35 million in funds from the Quercus Trust, and added key members to our Board of Directors – including David Gelbaum, the highly-regarded head of Quercus. These achievements bolster the company’s long-term growth outlook and solidify our leadership position in large, complex solar solutions. We now have ample funds to complete our 50 MW production line for ENTECH modules in Texas, and we hope to have this operation up and running in the next few quarters.

“We are also now in the process of finalizing many projects previously announced, while actively bidding on a plethora of new opportunities in the U.S. and abroad. We are seeing a significant number of projects that can leverage our ENTECH technology, and we anticipate these contracts will accelerate growth later this year. As for our already-announced letters of intent in Italy and Spain, we continue to wait for certain legislative issues to be resolved before the contracts can be concluded. In Italy, our 3.25 megawatt farm is moving forward but has seen delays tied to new legal requirements regarding photovoltaic applications. Likewise, in Spain, our projects – both the 3 MW solar farm in Aragon and the initial 10 MW one in Lorca – still await a decision by the Spanish Government on the exact incentive scheme (feed-in tariff) for solar power. As previously disclosed, the current feed-in tariff of 44 Euro cents per kilowatt hour is set to expire at the end of September, and the new government is now determining the feed-in tariff values going forward. While we cannot estimate the exact timing for the new tariff determination, which is out of our control, we remain optimistic that progress with our projects can soon be made, particularly given our representation in Spain and Italy and the overall strong support for alternative energy generation in Europe. WorldWater is strongly positioned for any contracts with our cost-efficient, ENTECH technology, whether or not the incentives are changed.

“In the meantime, we continue to bid on a record number of RFPs. With our recent capital infusion from the Quercus Trust and completion of the ENTECH acquisition, WorldWater enters 2008 better prepared than ever to take advantage of the many opportunities available to us. Given the many variables affecting our industry, however, we have determined that providing guidance is, for the time being, impractical. Whether the projects be small, like the sale of 12 Mobile MaxPure™ units destined for use by farmers in Iraq, or large projects such as complete energy systems for airports and solar farms, it is commonplace for governments and commercial enterprises to face interruptions or delays that have nothing to do with our products, technology, or service.

“We are very excited about the future for the company, both in 2008 and beyond. We appreciate our shareholders’ commitment and patience. With our extensive pipeline of projects, cutting-edge technology, and dedicated staff, we expect the coming years to provide long-term, attractive returns for our investors.”

About WorldWater & Solar Technologies Corp:

WorldWater & Solar Technologies Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's electricity and water supply problems. For more information about WorldWater & Solar Technologies Corp., visit the website at www.worldwater.com.

Forward Looking Statements:

Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB and its quarterly reports on Form 10-QSB both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.

WORLDWATER & SOLAR TECHNOLOGIES AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2007 AND DECEMBER 31, 2006
		Three Months				Years Ended:
		12/31/07		12/31/06		2007		2006
Revenues:
Contract		$ 9,974,186		$ 7,039,441		$ 17,530,167		$ 17,116,789
Contract - Related Party		900,000		-		900,000		-
Grant		35,853		19,041		35,853		216,892
Total		10,910,039		7,058,482		18,466,020		17,333,681
Cost of Revenues:
Contract		9,586,632		6,178,052		16,041,611		14,411,406
Contract - Related Party		685,571		-		685,571		-
Grant		-		20,472		-		202,688
Total		10,272,203		6,198,524		16,727,182		14,614,094
Gross Profit (Loss):
Contract		387,554		861,389		1,488,556		2,705,383
Contract - Related Party		214,429				214,429		-
Grant		35,853		(1,431)		35,853		14,204
Total		637,836		859,958		1,738,838		2,719,587
Operating Expenses:
Marketing, general and administrative expenses		6,186,651		2,328,669		15,369,285		7,774,871
Research and development expense		155,960		(15,246)		825,838		202,014
Total Operating Expenses		6,342,611		2,313,423		16,195,123		7,976,885
Loss from Operations		(5,704,775)		(1,453,465)		(14,456,285)		(5,257,298)
Other (Expense) Income
Debt sourcing fees and commissions		-		(90,750)		-		(284,138)
Beneficial Conversion and Warrant Amortization		(31,216)		(709,009)		(124,964)		(3,399,992)
Warrant exercise inducement fees		-		-		-		(1,588,432)
Interest Income		146,656		438,678		271,587		120,103
Interest Expense		(75,377)		(639,635)		(75,377)		(639,635)
Total Other (Expense) Income, Net		40,063		(1,000,716)		71,246		(5,792,094)
Net Loss		(5,664,712)		(2,454,181)		(14,385,039)		(11,049,392)
Accretion of preferred stock dividends		(7,552)		(22,500)		(38,411)		(22,500)
Preferred Stock Dividends attributable to Beneficial Conversion and Warrant Amortization		-		(4,066,796)		-		(4,066,796)
Net Loss Attributable to Common Shareholders		$ (5,672,264)		$ (6,543,477)		$ (14,423,450)		$ (15,138,688)
Net Loss applicable per Common Share (basic and diluted)		$ (0.03)		$ (0.04)		$ (0.08)		$ (0.11)
Weighted Average Common Shares Outstanding used in Per Share Calculation (Basic and Diluted)		186,278,593		149,330,435		170,154,075		135,921,421

WORLDWATER & SOLAR TECHNOLOGIES CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS FOR THE YEARS ENDED DECEMBER 31, 2007 AND DECEMBER 31, 2006
			December 31, 2007				December 31, 2006
Assets
Current Assets:
Cash and cash equivalents		$	6,873,448			$	5,770,595
Restricted cash			-				31,257
Accounts receivable - trade, (net of allowance of $220,916 and $29,257 at December 31, 2007 and December 31, 2006, respectively)			10,155,589				5,288,241
Accounts receivable - other			-				22,500
Rebates Receivable			1,153,800				-
Inventory			1,399,168				748,470
Costs and estimated earnings/losses in excess of billings			5,548,631				2,548,427
Prepaid expenses and deposits			973,795				1,763,293
Travel advances to employees			43,024				33,676
Total Current Assets			26,147,455				16,206,459
Equipment and Leasehold Improvements, Net			1,467,794				195,808
Intangible And Other Assets
Other intangible assets, net			26,667				66,667
Deferred costs on and advances to acquiree - ENTECH			3,795,362				790,769
Other deposits			52,710				8,443
Total Assets			31,489,988				17,268,146
Liabilities, Convertible Redeemable Preferred Stock, and Stockholders' Equity/(Deficiency)
Current Liabilities:
Accounts payable and accrued expenses			9,392,944				4,862,877
Long-term debt and notes payable, current portion			298,092				360,897
Notes payable, related parties			-				3,000
Customer deposits			4,000				43,453
Customer deposits - related party			775,000				-
REC guarantee liability, current portion			64,701				98,710
Billings in excess of costs and estimated earnings/losses			2,900				149,245
Total Current Liabilities			10,537,637				5,518,182
Long-term debt and notes payable			38,456				38,456
REC guarantee liability, net of current portion			229,617				250,844
Total Liabilities			10,805,710				5,807,482
Convertible redeemable preferred stock
Series C convertible redeemable preferred stock			500,000				750,000
Series D convertible redeemable preferred stock			12,134,388				12,134,388
Total Convertible Redeemable Preferred Stock			12,634,388				12,884,388
Stockholders' Equity / (Deficiency):
Preferred Stock Convertible $.01 par value authorized 10,000,000; issued and outstanding: Series B 7%- 611,111 shares liquidation preference $550,000			6,111				6,111
Common Stock, $.001 par value; authorized 275,000,000; 189,352.674 and 149,359,052 issued and outstanding at December 31, 2007 and 2006, respectively			189,353				149,359
Additional paid-in capital			71,425,032				47,567,963
Accumulated deficit			(63,570,607	)			(49,147,157	)
Total Stockholders' Equity / (Deficiency)			8,049,889				(1,423,724	)
Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity/(Deficiency)		$	31,489,988			$	17,268,146