MEMC Provides Mid-Quarter Update

As part of this release, the company has provided an update to the silane and polysilicon output charts for itsPasadena, Texas facility, which were originally provided as part of the company's second quarter earnings release on July 23, 2008. The charts have been updated to include production rates through September 1.

"The attached charts indicate that the polysilicon production rates at our Pasadena facility have been at levels that, combined with the strength of demand from solar applications customers, could allow us to achieve results in the upper half of our targeted financial range," said Nabeel Gareeb, MEMC's chief executive officer. "However, there is increased softness in demand from semiconductor applications customers, primarily due to their inventory reduction initiatives. In addition, there continues to be the potential for unanticipated events to occur, which could affect our polysilicon production output, as we have experienced over the past year. These elements warrant a continued degree of caution in our outlook given the amount of time left in the quarter. As a result, we have not changed our previous targets for revenue of $560-$620 million and gross margin of 54%-55%. Operating expenses are targeted to be approximately $43 million, compared to the prior target of approximately $41 million, primarily due to one-time, non-cash severance related expenses. These revenue targets would represent growth of 5%-17% versus the previous quarter, and 18%-30% versus the year-ago quarter. The gross margin targets would represent expansion of up to 180 basis points versus the previous quarter and up to 450 basis points versus the year-ago quarter."

"We are also pleased to announce that all deposits due from Conergy and Tainergy for 2008 have been received. Consequently, MEMC has commenced wafer deliveries to both customers," concluded Gareeb.

Conference Call

MEMC will host a conference call today, September 2, 2008, at 5:00 p.m. ET to discuss this update. A live webcast will be available on the company's web site at www.memc.com. MEMC's original third quarter outlook was published in the company's second quarter earnings release on July 23, which is available at www.memc.com.

A replay of the conference call will be available from 7:00 p.m. ET on September 2, 2008, until 11:59 p.m. ET on September 10, 2008. To access the replay, please dial (320) 365-3844 at any time during that period, using passcode 958361. A replay will also be available until 11:59 p.m. ET on September 10, 2008 on the company's web site at www.memc.com.

About MEMC

MEMC is a global leader in the manufacture and sale of wafers and related intermediate products to the semiconductor and solar industries. MEMC has been a pioneer in the design and development of wafer technologies over the past four decades. With R&D and manufacturing facilities in the U.S.,Europe andAsia, MEMC enables the next generation of high performance semiconductor devices and solar cells. MEMC's common stock is listed on the New York Stock Exchange under the symbol 'WFR' and is included in the S&P 500 Index.

Certain matters discussed in this news release are forward-looking statements, including that third quarter 2008 revenues are targeted to be approximately $560-$620 million, with gross margin of approximately 54%-55% and operating expenses of approximately $43 million. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include market demand for wafers and semiconductors as well as polysilicon; utilization of manufacturing capacity; good working order of our manufacturing facilities; our ability to reduce manufacturing and operating costs; inventory levels of our customers; changes in the pricing environment for both silicon wafers and polysilicon; supply chain difficulties or problems; interruption of production; delays in capacity expansion; customer acceptance of our new products; assumptions underlying management's financial estimates; general economic conditions; actions by competitors, customers and suppliers; changes in product specifications and manufacturing processes; changes in financial market conditions; changes in the composition of worldwide taxable income; the impact of competitive products and technologies; changes in interest and currency exchange rates and other risks described in the company's filings with the Securities and Exchange Commission. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements.

Please click on the link below for the silane and polysilicon output charts: http://www.newscom.com/cgi-bin/prnh/20080902/NYTU118

SOURCE MEMC Electronic Materials, Inc.

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