Day4 Energy Reports Fourth Quarter and Full Year 2010 Results

By Day4 Energy Inc., PRNE
Wednesday, March 30, 2011

BURNABY, Canada, March 31, 2011 - Day4 Energy Inc. (TSX: DFE), a leading global provider of solar
photovoltaic (PV) products and solutions, today reports its operating results
for the fourth quarter and full year 2010.

"During this past year, we achieved a number of objectives including
improving our product cost structure and reaching new levels of market
adoption for our technology. In addition, we established the foundation for
the business strategy that we believe will allow us to capitalize on these
accomplishments moving forward. As we enter 2011, our industry is at a
critical point in its development due to a combination of factors, including
volatile feed-in tariff environments and continued price reductions as supply
is widely expected to exceed demand. We believe the consequences of this
shift in the market will be a very challenging business environment in which
consolidation among companies will be likely, and survivors will be
identified by their strong, competitive and differentiated product
offerings," says George Rubin, President of Day4 Energy Inc.

"In the fall of 2010 we successfully completed the acquisition of our
long-term manufacturing equipment development partner, ACI ecoTec GmbH
("ACI"). ACI's acquisition provides us with accelerated manufacturing
technology development capabilities, as well as a manufacturing solutions and
equipment sales, production and delivery infrastructure. With this
acquisition, we commenced the transformation of our business from technology
scale-up, and the required market development associated with PV module
manufacturing and distribution, to a manufacturing technology and product
marketing solutions company. We believe this strategy allows us to benefit
from the strengths of our brand and technology, and address the challenges of
the coming months" concludes Mr. Rubin.

Key events of the quarter and full year 2010 included:

1. Increasing Market Penetration

During the last year we successfully increased sales volumes to $166.7
, an increase of 178% from the previous year. Furthermore, we entered
new markets and expanded geographic diversification of our market presence.
Our Italian market sales increased to $76.6 million compared to $4.3 million
in 2009. At the same time we expanded our sales presence in emerging markets,
including Australia, where our sales increased to $3.7 million compared to
$Nil in 2009.

2. Improving Product Cost Structure

During the last 12 months we concentrated our production and R&D efforts
on improving the cost structure of our product offering. During the first and
second quarters of 2010 our product cost reduction efforts focused on the
transition to new, lower cost product design and expanding our manufacturing
footprint at the Jabil facility in Poland. During the second half of the year
we further improved our product cost structure by adjusting the bill of
materials to include low cost components while maintaining high quality
standards of our product offering. As a result of these efforts we maintained
positive gross margin throughout the year and reached 8% in gross margin in
Q4 of 2010, even though adverse fluctuations in foreign exchange (FX) rates
had a strong negative impact on our cost of sales during the year.

3. Creating the Foundation for Future Growth

While our operating expenses continued to exceed gross profits for the
year, we established a foundation for the business model that we believe will
enable us to leverage the full potential of our now established proprietary
manufacturing process and ultimately improve our profit margins to
sustainable levels. By acquiring ACI in the fall of 2010 we have combined
experience as technology developers, module and equipment manufacturers and
marketing and sales experts to customers around the world wishing to
establish or expand their PV business through our Day4 solarSYSTEMS licensing


Worldwide Product Revenues

Fourth quarter revenues of $57.7 million increased by $21.1 million or
57% from the same period in 2009 and by $16.3 million or 40% from the prior
quarter. Revenues for the full year ended December 31, 2010 increased by
$106.6 million when compared to the same period in 2009.

Gross Margins

Gross margin was $4.7 million (8%) for the fourth quarter 2010 as
compared to a gross margin of $1.7 million (4%) in the prior quarter and
$2.6 million in the fourth quarter 2009. We improved gross margin in the
fourth quarter due to stabilizing costs, near capacity production and
favourable FX rates. The change to a 5% gross margin in 2010 from a 14%
gross loss in 2009 was due to continuous improvement in the overall
manufacturing cost structure of our business, including: continuous
reductions in the bill of materials, production volume expansion and the
transition to a lower cost product mix which yielded a higher average
selling price per watt.


For the fourth quarter of 2010, general and administrative (G&A) expenses
were $2.5 million, an increase of $0.6 million and $1.8 million over expenses
of $1.9 million in the prior quarter and $0.7 million for the same period in
2009, respectively. The increase in G&A expenses from the prior quarter
relates primarily to the acquisition of ACI and ACI's contribution to G&A
expenses in the period.

G&A expenses were $9.7 million for the full year ended December 31, 2010
and $7.6 million for the same period in 2009. The increase in G&A expenses in
2010 primarily relates to due diligence activities for the acquisition of ACI
and the production capacity expansion at our facility in Poland.

Sales and marketing expenses were $1.2 million for the fourth quarter
2010 compared to $1.0 million in the same period in 2009 and $0.8 million in
the third quarter 2010. The increase in marketing expenses in the quarter
reflects the addition of ACI's sales and marketing activities since

Sales and marketing expenses for the full year ended December 31, 2010
were $4.1 million compared to $3.5 million for the prior year. The increased
expenditures in 2010 reflect the increases in our sales and marketing
activities through the year to take advantage of opportunities in the growing
European markets. These efforts were essential to address the rapidly
expanding opportunities in each of our core markets and to align our
infrastructure to roll out our turn-key manufacturing technology solution.

R&D expenses in the fourth quarter were $1.8 million compared to $0.8
for the prior quarter and $1.0 million for same period in 2009.The
increase was due to investments made to process improvements and products.

For the full year ended December 31, 2010 R&D expenses were $4.1 million
compared to $3.1 million the prior year same period. The increase in R&D
expenses reflect additional research and development activities conducted by
ACI since acquisition and the repurposing of our Burnaby facility.

Loss per Share
The net loss for the fourth quarter 2010 was $1.3 million ($0.04 per share)
compared to $2.3 million ($0.06 per share) in the prior quarter and a net
income of $0.6 million ($0.02 per share) for the same period in 2009.

The net loss for the full year ended December 31, 2010 was $9.8 million
($0.26 per share) compared to $20.4 million ($0.56 per share) for the same
period in 2009. The lower net loss in 2010 was primarily due to improvements
in gross margin. Also, approximately $9.8 million loss in 2009 related to
inventory write-downs.

Cash and Short-Term Investments

Working capital was $20.7 million at the end of the fourth quarter and
full year ended December 31, 2010 a decrease of $5.0 million compared to the
previous quarter. Cash and cash equivalents, restricted cash and short-term
investments totaled $12.3 million at December 31, 2010, a decrease of $2.1
from $14.4 million at September 30, 2010; a decrease of $14.9 million
from $27.2 million at December 31, 2009. Cash and cash equivalents have
decreased since December 31, 2009 primarily due to the utilization of funds
to finance operations.

Detailed financial results and management's discussion and analysis can
be found on our website at or on SEDAR at

About Day4 Energy

Day4 Energy Inc. is a Canadian company dedicated to providing high
performance photovoltaic (PV) solutions for residential, commercial and
utility scale installations. By fundamentally improving on the design and
assembly of solar cells and modules, the Company produces unique PV panels of
high power density, increased lifetime and uncompromised aesthetic
appearance. Day4 Energy partners with international technology leaders to
develop and deliver IEC- and UL-certified solar products to customers around
the world. Day4 Energy is listed on the Toronto Stock Exchange under the
symbol "DFE". For more information, please visit

Conference Call Information

Day4 Energy's management will conduct a conference call at 8:30am (EST)
March 31, 2010 to review the company's fourth quarter and full year 2010
financial results. The call can be accessed by dialing 1-800-319-4610
(Canada and US) or 1-604-638-5340 (International) prior to the start of the
call. Following the call a recording of the conference call will be archived
on Day4 Energy's website,

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements that relate to our
current expectations and views of future events. These forward-looking
statements include, among other things, statements relating to our
expectations regarding our revenues, expenses, cash flows, operating
performance and future profitability. Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by words such as "anticipate", "continue", "estimate", "expect",
"forecast", "may", "will", "project", "could", "plan", "intend", "should",
"believe", "outlook", "potential", "target", and similar words suggesting
future events or future performance.

The forward-looking statements contained in this news release are based
on assumptions, which include, but are not limited to, our ability to obtain
an adequate spread between our module average selling price and cost of raw
materials, including PV cells; the continued ability of Jabil Circuit Inc.
("Jabil") to successfully manufacture our products; the interest of third
parties in manufacturing Day4's products under license; our ability to meet
and manage demand for our products; achieving increased PV cell and PV module
efficiencies; expanding our existing product line; developing new markets for
our products and securing necessary certifications in such markets; building
the Day4 brand, attracting customers, and developing and maintaining customer
and supplier relationships; continuing our strong relationships with our
suppliers; effectively managing foreign exchange risks; effectively managing
credit risks of customers and other counterparties; protecting our
intellectual property rights and not infringing on the intellectual property
rights of third parties; timely processing by certification agencies for new
products; the continued existence of government incentives for the generation
of electricity using solar power; and complying with applicable governmental
regulations and standards.

Such forward-looking statements are subject to risks, uncertainties and
other factors, including those listed in our Annual Information Form filed
with Canadian securities regulatory authorities, many of which are beyond our
control and each of which contributes to the possibility that our
forward-looking statements will not occur or that actual results, performance
or achievements may differ materially from those expressed or implied by such
statements. These risks, uncertainties and other factors include, but are not
limited to, with the continued integration of ACI, Day4 may be subject to
additional financial and personnel strains; ACI may not be able to fulfil
orders in a timely fashion for products necessary for the implementation of
the Company's strategy of licensing third party manufacturers of the
Company's products; Third Party Suppliers of equipment needed as part of our
turnkey manufacturing solution may default on their obligations; there may be
a lower than expected interest from third parties in manufacturing Day4's
products under license; risks related to the outsourcing of our manufacturing
and our dependence on Jabil for the manufacture of our products; the
possibility that we may be subject to litigation by our suppliers or
customers; our dependence on a limited number of PV cell suppliers; price
fluctuations that may impact relations with existing customers; risks
relating to the protection of our intellectual property and intellectual
property infringement claims by third parties; our reliance on a limited
number of suppliers; government subsidies and economic incentives for PV
power could be reduced or eliminated; the financial strength of our
competitors; our financial strength and our ability to effectively manage our
cashflow; competition from other forms of renewable energy; our ability to
manage growth effectively; our ability to open up new markets for our
products; demand for PV modules may reduce; technological advances from
competitors that may render our products uneconomic or obsolete; the impact
of general economic, market or business conditions; currency market
fluctuations; and other factors, many of which are beyond our control.

The forward-looking statements made in this news release relate only to
events or information as of the date indicated above. Except as required by
law, we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.

    Day4 Energy Inc.
    Consolidated Balance Sheets
    As at December 31, 2010 and 2009

                                                         2010          2009
                                                            $             $


    Current assets
    Cash and cash equivalents                      10,486,264    17,804,941
    Restricted cash (note 5)                        1,784,355       335,000
    Short-term investments (note 6)                         -     9,067,397
    Accounts receivable                            13,427,928     3,598,384
    Investment tax credits receivable (note 7)              -       600,000
    Other receivables (note 8)                      4,474,808     8,447,806
    Inventory (note 9)                             13,859,553    11,078,173
    Prepaid expenses                                  798,030       564,336
                                                   44,830,938    51,496,037
    Property, plant and equipment (note 10)        22,163,895    21,679,300
    Intangible assets (note 11)                       854,636             -
    Goodwill (note 12)                              4,131,137             -
                                                   71,980,606    73,175,337


    Current liabilities
    Accounts payable and accrued liabilities       17,539,949    13,321,691
    Taxes payable (note 13(d))                        935,221       830,000
    Current portion of long-term debt (note         3,859,806     1,143,521
    Deferred revenue                                  566,569       322,331
    Capital lease obligation - current              1,215,457             -
                                                   24,117,002    15,617,543
    Capital lease obligation (note 15)                429,541             -
    Long-term debt (note 16)                        1,375,665             -
                                                   25,922,208    15,617,543

    Shareholders' Equity (note 13)

    Share capital
              Unlimited number of common shares
              Unlimited number of preferred
    Issued and outstanding
              43,149,366 (2009 - 36,739,366)      134,391,619   130,972,498
              common shares
    Equity component of consideration issuable      1,128,870             -
    for business acquisition
    Contributed surplus                             5,226,334     2,581,508
    Warrants                                                -     2,279,890
    Accumulated other comprehensive income        (9,863,502)   (3,201,330)
    Deficit                                      (84,824,923)  (75,074,772)
                                                   46,058,398    57,557,794
                                                   71,980,606    73,175,337
    Nature of operations and going concern
    (note 1)
    Commitments (note 17)

    (signed) John S. MacDonald Director (signed) James Topham Director

    The notes are an integral part of these financial statements.

    Day4 Energy Inc.
    Consolidated Statements of Operations and
    For the years ended December 31, 2010 and 2009

                                                           2010         2009
                                                              $            $

    Revenues                                        166,689,249   60,044,856
    Cost of revenues                                157,668,679   68,531,840
    Gross margin (loss)                               9,020,570  (8,486,984)

    General and administrative                        9,701,674    7,602,859
    Research and development                          4,061,575    3,149,962
    Less: Investment tax credits and government       (456,116)    (120,184)
    assistance (notes 7 and 19)
    Selling and marketing                             4,081,186    3,476,698
    Depreciation                                      1,979,019    1,387,853
    Amortization                                         37,783            -
                                                     19,405,121   15,497,188
    Loss before undernoted                           10,384,551   23,984,172

    Foreign exchange gain                               565,481    3,419,896
    Interest and other income                           269,360      253,527
    Interest expense                                  (193,971)    (109,848)
    Gain (loss) on disposal of property, plant and      (6,470)       23,603
    Gain on disposition of subsidiary (note 3)                -       24,677
    Accretion expense                                         -     (22,394)
                                                        634,400    3,589,461
    Loss before non-controlling interest              9,750,151   20,394,711
    Non-controlling interest (notes 2 and 3)                  -     (11,323)
    Loss for the year                                 9,750,151   20,383,388
    Deficit - Beginning of year                      75,074,772   54,691,384
    Deficit - End of year                            84,824,923   75,074,772
    Net loss per share - basic and diluted                 0.26         0.56

    Weighted average number of shares outstanding -  37,869,065   36,681,667
    basic and diluted

    The notes are an integral part of these financial statements.

    Day4 Energy Inc.
    Consolidated Statements of Cash Flows
    For the years ended December 31, 2010 and 2009
                                       2010          2009
                                         $             $

    Cash flows from operating activities
    Loss for the year                        9,750,151)  (20,383,388)
    Items not affecting cash
    Stock-based compensation                   437,626       494,797
    (note 14)
    Depreciation and                         3,465,929     2,834,615
    Loss (gain) on sale of                       6,741       (23,603)
    property, plant and
    Valuation write down of                    603,714     9,812,699
    inventory (note 9)
    Unrealized foreign                         317,225     5,881,263
    exchange (gain) loss
    Change in value of                              -     (2,157,218)
    derivative instruments
    Non-controlling interest                        -        (11,323)
    Changes in non-cash working
    capital items
    Accounts receivable                    (6,936,983)    (2,967,342)
    Investment tax credits
    receivable                                600,000              -
    Other receivables                       3,740,244     (7,003,902)
    Inventory                              (1,717,635)    14,127,685
    Prepaid expenses                          287,730       (184,904)
    Accounts payable and accrued
    liabilities                              (706,027)    (2,529,878)
    Deferred revenue                         (137,783)       154,319
                                           (9,789,370)    (1,980,857)

    Cash flows from investing activities
    Purchase of short-term investments     (2,500,000)    (9,000,000)
    Proceeds from sale of short-term
    investments                            11,500,000              -
    Change in restricted cash              (1,449,355)    10,750,230
    Purchase of property, plant and
    equipment                              (2,140,468)    (2,985,530)
    Proceeds from sale of property,
    plant and equipment                        10,913      8,215,702
    Proceeds from sale of subsidiary -
    net of cash included in sale of
    $29,098                                         -          9,590
    (note 3)
                                            5,421,091      6,989,992

    Cash flows from financing activities
    Repayment of IRAP loan                          -       (142,940)
    Proceeds from bank debt                   271,015              -
    Repayment of capital lease obligation    (226,995)             -
    Proceeds from exercise of stock options   252,500         15,000
                                              296,520       (127,940)
    Impact of foreign exchange on cash and
    cash equivalents                       (3,246,918)    (1,806,548)
    Increase (decrease) in cash and
    cash equivalents                       (7,318,677)     3,074,647
    Cash and cash equivalents -
    Beginning of year                      17,804,941     14,730,294
    Cash and cash equivalents -
    End of year                            10,486,264     17,804,941
    Supplemental cash flow information
    Cash paid for interest                    132,903         51,634
    Cash received for interest                133,577         19,894

    The notes are an integral part of these financial statements.

    Day4 Energy Inc.
    Notes to Consolidated Financial Statements
    December 31, 2010 and 2009

                                                            2010        2009
                                                               $           $

    Loss for the year                                  9,750,151  20,383,388

    Unrealized foreign exchange losses on translation
    of consolidated financial statements to the
    presentation currency                              6,662,172   3,201,330

    Other Comprehensive Loss                           6,662,172   3,201,330

    Comprehensive Loss                                16,412,323  23,584,718

                                                            2010        2009
                                                               $           $

    Accumulated Other Comprehensive Loss - Beginning   3,201,330           -
    of Year

    Unrealized foreign exchange losses on translation
    of consolidated financial statements to the
    presentation currency                              6,662,172   3,201,330

    Accumulated Other Comprehensive Loss - End of Year 9,863,502   3,201,330

    Approved by the Board of Directors
    %SEDAR: 00026066E

    For further information:
    Justin Lacey
    Media Contact
    Day4 Energy Inc.

For further information: Justin Lacey, Media Contact, Day4 Energy Inc., +1-604-297-0449, media at

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