The following is excerpted from the question-and-answer section of the transcript.

Question: Sanjay Shrestha - Lazard Capital Markets - Analyst: Great, thank you. Good afternoon, guys. A couple of quick questions. So now with the sort of promising outlook of cost trajectory with your Jiawei contract manufacturing relationship, how does that change your expansion thought process with Devens beyond 40 megawatt per quarter run rate? And then also, how much more will you guys choose or plan to sort of put in with the Sovello relationship, given that that cost structure is probably never going to be able to rival the cost structure you can get in China?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Sanjay Shrestha - Lazard Capital Markets - Analyst: Got it. And a few more, if may. So you guys just announced on Tuesday about your cooperation with the Export-Import Bank of the US, low interest rate for solar projects outside the United States that talks about potential opportunity of 90 megawatts. What sort of a timeframe are we talking about for that?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Sanjay Shrestha - Lazard Capital Markets - Analyst: Okay, thank you. One follow-up on that, then. Can you update us on your prior very impressive backlog that you guys had, given that the world and the change that we've gone through with the ASP reduction. How firm those commitments are still at this point in time? Two, can you also update us on your silicon position, given also what's going on also in the spot silicon market. And is there any risk for you guys to potentially have to write down your-- or potentially renegotiate your existing long-term silicon contract?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Sanjay Shrestha - Lazard Capital Markets - Analyst: Great. One last question and I'll hop back in the queue. Mike, I couldn't quite catch all of it when you were going through the cash requirements for the remainder of 2009. Can you give me those numbers one more time?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Sanjay Shrestha - Lazard Capital Markets - Analyst: Got it. Okay. That's fantastic. Thanks a lot, guys.

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Ming Xue - Piper Jaffray - Analyst: Hi, this is [Ming Xue] for Jesse Pichel. Thanks for taking my questions. Two questions. First, what is the D&A in the quarter? Second, you mentioned the market opportunity in China. Have you participated in any bids or projects in China? Thanks.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Ming Xue - Piper Jaffray - Analyst: I'm sorry -- what is the depreciation and amortization for the quarter?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Ming Xue - Piper Jaffray - Analyst: And you mentioned the market opportunity in China. Have you participated in any bids or projects in China?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Ming Xue - Piper Jaffray - Analyst: Thanks.

Question: Burt Chow - Simmons & Company - Analyst: Hey, guys. Just a couple of quick housekeeping, real quick. What was conversion efficiency in quarter for your product?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Yes.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay, great. And other than just dividing your production by the stated capacity, is there anything in there that would change capacity factor? I mean, for the quarter, was it-- is it a pretty straightforward calculation? There's nothing in there?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay, great. And just touching on polysilicon real quick, you guys had mentioned, I think-- I may have misheard, but long term, kind of blended costs of polysilicon contracts at around $90 a kg and you aid in China you hoped-- for that $1 per watt number, you need it to be around $50 a kilogram -- is that right?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay. And Mike, you had mentioned, I guess, the $1 per kilogram number for polysilicon in China now that would get you to kind of the $1.50. Was that-- I thought I heard $25, but that sounds like--

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Burt Chow - Simmons & Company - Analyst: Okay, $75. Okay, wonderful; appreciate that. And so, with spot pricing as low as $70, as you just mentioned, has that come up? Because we'd heard previously $50 to $60 numbers, or is that just kind of really small quantities?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay, great. And then, just kind of last question, around the Chinese agreement. With the Chinese costs being significantly better than that that you can achieve in Devens effectively at the beginning of next year, and then in the kind of two-year timeframe for $1 per watt -- and also with this export-import agreement, would it eventually make sense for you to export everything you make into Devens. And if the US market takes off, for you actually to import that from China, given the lower cost? I mean, because if you're going to secure the refinancing for exported products made in the US versus Chinese products, is that something that is under consideration, or is that too much work for getting what we need out of this agreement?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Burt Chow - Simmons & Company - Analyst: Okay. And do you anticipate that the Chinese product, even though it is Evergreen branded, effectively Evergreen sourced, would command any bit of a discount compared to the US- or even the Sovello-made product from just a pure dollar per watt basis?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay. And so from, like, a bank financing standpoint in Europe, you haven't heard any push-back, say, from the German banks saying that a US-based Evergreen patent module would be differently financed than a Chinese one?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Okay. Well, great; thanks for taking all the questions.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Adam Lilly - UBS - Analyst: Yes, hi. This is Adam Lilly for Steven Chin. Are you seeing any pent-up demand from the United States on large-scale projects now that the Treasury grant program has been clarified? And also, what's your view on when the Department of Energy will announce its loan guarantee details? Do you think it'll be fourth quarter or first quarter of next year?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Adam Lilly - UBS - Analyst: Thank you.

Question: Al Kaschalk - Wedbush Morgan - Analyst: Good afternoon, guys.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Al Kaschalk - Wedbush Morgan - Analyst: Just a clarification, really. On the planned production for Q3 of 27 to 33 megawatts. That's up, I guess, almost 20%. So is that part due to your availability to produce more or have you really seen sort of the improvement in the market marginally that you really have that market to sell if you could make 40 megawatts? Just touch upon that a little bit.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Al Kaschalk - Wedbush Morgan - Analyst: Are there other things you maybe can do relative even to some of your competitors to help jump-start some of the demand on your side in addition to the financing? I mean, clearly the broader market has kept the lid on demand for everybody, but I'm just looking at your product relative to others, and what you're able to produce versus what you could a couple of quarters ago.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Al Kaschalk - Wedbush Morgan - Analyst: Okay, thanks a lot. Continue the improvement.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Robert Lahey - Ardour Capital - Analyst: Hi, this is Robert Lahey speaking on behalf of Adam. Could you guys comment real briefly on the noise control issue with the neighbors up in Devens? As to when you would expect to get a final CO? And what sort of the all-in costs of the experience would be, and how they would be treated?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Robert Lahey - Ardour Capital - Analyst: Great; thanks. And could I ask real quick, too, your inventory guidance at the end of the quarter? Can you break that down a little bit in terms of work in progress versus finished goods?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Robert Lahey - Ardour Capital - Analyst: Okay, great. Thank you.

Question: Hari Chandra - Deutsche Bank - Analyst: Thank you. When you provided the cost targets for 2010 and 2012, I just wanted to know what gross margin targets are you working with? And are they realizable given the price implosion that you're seeing in the market?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Hari Chandra - Deutsche Bank - Analyst: And do you see any timeline in terms of Sovello monetization or some other way to extricate yourself out of that so you can get some money out of it?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Hari Chandra - Deutsche Bank - Analyst: Is there any timeline or any thoughts on Sovello monetization, or any way for you to extricate yourself out of that?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Hari Chandra - Deutsche Bank - Analyst: Okay. A follow-up onto that is, does it entail Evergreen Solar to tap the markets again for its operational needs? Of course, you've given some cushion in terms of your cash and capital requirements as such, but does it entail that you will be hitting the capital markets again some time by the end of the year or next year?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Hari Chandra - Deutsche Bank - Analyst: Thank you.

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Seth - Citi - Analyst: Hi, guys; it's Seth. I was just wondering what your kind of assumptions nearer term are for ASPs. Your third quarter outlook was assuming kind of your production level there, that 27-33 megawatts?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Theodore O'Neill - Kaufman Brothers - Analyst: Thank you. Of the shipments in the quarter, can you quantify, like, how many of-- what percentage of that was panels at 200 watts or higher?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Theodore O'Neill - Kaufman Brothers - Analyst: Okay. Thanks very much.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Jeff Davies - Waterstone Capital - Analyst: Yes, can I get cash from operations in the quarter and CapEx for the quarter?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Jeff Davies - Waterstone Capital - Analyst: While you're getting that, the 7.5% financing from the Chinese -- is that just an unsecured loan?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Jeff Davies - Waterstone Capital - Analyst: How much of that cash from operations was working capital and what was funds from operations before any changes in working capital?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Jeff Davies - Waterstone Capital - Analyst: Thank you.

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Chris Blansett - JP Morgan - Analyst: Hi. Quick question on-- maybe a little more color on the financing markets. How much of the problems do you think are just lack of financing and how much are maybe financing at a rate that may be unpalatable?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Chris Blansett - JP Morgan - Analyst: One more question -- it's related to Export-Import Bank. It seems that they've been able to finance export products for quite a long time for renewables. I'm just trying to understand why this avenue has not been utilized before. Is there a specific reason?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Chris Blansett - JP Morgan - Analyst: And then, one last question from me. If you assume that a customer of yours did get full financing from the Export-Import Bank, and when you take into account their ability to do partial funding of the system installation, what's your estimate of how much of that total project financing would be done through the Ex-Im bank?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Chris Blansett - JP Morgan - Analyst: All right; thank you.

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Jesse Pichel - Piper Jaffray - Analyst: Good evening, gentlemen. A few questions. Is there any way to lower, or eliminate, the loss in Sovello? What is your strategy there?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Jesse Pichel - Piper Jaffray - Analyst: Any idea if Sovello has much excess inventory out in the channel?

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Jesse Pichel - Piper Jaffray - Analyst: Okay. And Terry, since I have you there, what if we were to assume that the pricing for Chinese panels goes to $1.80 a watt by Q4? Then what is your strategy? Do you envision having a two-tiered pricing structure, one for US products and one for China products?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Jesse Pichel - Piper Jaffray - Analyst: So at this point, you're kind of halfway, I guess, through your ramp, I would say. Do you anticipate a problem moving the volume, or really it's just a question of price? I guess what I'm asking is, is it contracted?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Jesse Pichel - Piper Jaffray - Analyst: Great. Well, thanks very much and good luck.

Answer By: Rick Feldt - Evergreen Solar - President, Chairman, CEO

Question: Burt Chow - Simmons & Company - Analyst: Hey, guys, just touching up on Jesse's question regarding Sovello. I mean, REC and Q-Cells have recently had some challenges in their core businesses. They've also shown a trend toward diversifying outside of their home countries, instead of Norway, Sweden, or Germany. I mean, if that being the case, and they eventually start scaling back their European operations and Sovello is-- let's go out there and say potentially you can't get their cost down quite as much as you can even get down at Devens, have you had conversations amongst the partners about what a longer-term kind of worst-case scenario strategy would be for Sovello? Because as Jesse pointed out, it's one of those things-- the cash burn there is a little worrisome because amongst other things, it seems like all your other segments are on the up and up, while Sovello seems to be continually kind of a nagging issue.

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Burt Chow - Simmons & Company - Analyst: Okay; that makes a lot of sense. One quick question. Have you done any research on maybe of a per-watt basis for when you produce a module in China, what you think a kind of flat shipping rates to today, what it would cost you on a per-watt basis, just to throw that on a boat and ship it to the West Coast of the US? Do you have an estimate on that?

Answer By: Terry Bailey - Evergreen Solar - SVP, Marketing & Sales

Question: Burt Chow - Simmons & Company - Analyst: Okay. At $0.03 a watt, if that makes a lot of sense for you even to distribute to Europe and-- I mean, at that point-- when does there become a conflict between you-- completely understanding that Sovello's a third entity, but as, Mike, you highlighted, you want to keep a manufacturing base. But if it costs you $0.03, for Evergreen to set up a warehouse, whether it's in the US or Chinese modules or in Europe for Chinese or US modules-- Do the economics still, in the short term, make sense for you to--? I guess, getting to the end of the question, how long is the German furlough program around, and how long are you able to kind of maintain this low level of cash burn as opposed to if you had to pay for those employees or you had to pay for severance costs?

Answer By: Michael El-Hillow - Evergreen Solar - CFO

Question: Burt Chow - Simmons & Company - Analyst: Yes; those are great. Thanks, Mike; thanks, guys, for the follow-up.

Answer By: Michael El-Hillow - Evergreen Solar - CFO