Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes ) Notice of Interim Distribution

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1 Corporate Trust Services 214 North Tryon Street, 27 th Floor Charlotte, NC Notice to Holders of: Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes ) Notice of Interim Distribution Please forward this notice to beneficial holders. U.S. Bank National Association serves as indenture trustee and collateral agent (the Trustee ) with respect to the Senior Secured Notes pursuant to that certain Indenture dated as of April 26, 2010 (as amended or supplemented, the Indenture ) between the Trustee as indenture trustee and Evergreen Solar, Inc. (the Company ) as issuer together with various collateral documents delivered in connection therewith. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Indenture. Report on the Sale of Company s Assets in Bankruptcy Auctions In a prior notice from the Trustee, holders of the Senior Secured Notes (the Noteholders ) were informed that the Company (the Debtor ) had filed for Chapter 11 bankruptcy reorganization (the Bankruptcy Case ) in the United States Bankruptcy Court for the District of Delaware (the Court ) on August 15, 2011 (the Petition Date ), which constituted an Event of Default under the Indenture. Before the Petition Date, the Company and holders of a majority of the outstanding principal amount of the Notes (the Supporting Noteholders ) entered into a Restructuring Support Agreement (the RSA ) with the Debtor pursuant to which the Debtor agreed to commence the Bankruptcy Case and seek authority promptly thereafter to sell substantially of its assets in an auction conducted pursuant to Section 363 of the Bankruptcy Code (an Auction ) and a set of court-approved bidding procedures (the Bidding Procedures ). In a prior notice from the Trustee, the Noteholders were also informed that the Supporting Noteholders also agreed to form an acquisition entity, ES Purchaser LLC ( ES Purchaser ), to submit a stalking horse bid to acquire substantially all of the Debtor s assets pursuant to the terms of an Asset Purchase Agreement dated August 15, 2011 (the Stalking Horse Purchase Agreement ). The consideration for the stalking horse bid of $60,000,000 was in the form of a credit bid of a portion of the indebtedness

2 evidenced by the Senior Secured Notes (a Credit Bid ) that the Supporting Noteholders had directed the Trustee to authorize pursuant to a Direction dated August 15, 2011 (the Original Direction ). Under the Original Direction, if a Credit Bid became the prevailing bid and a closing occurred, ES Purchaser would be converted from a Delaware LLC to a Delaware C corporation and the equity thereof would be distributed to all Noteholders under the Indenture in accordance with the Indenture. For the purpose of conducting the Auction, the Debtor divided its assets into several lots. Lot 1 consisted of the Debtors claims against Lehman Brothers International (Europe)( LBIE ) and Lehman Brothers Holdings Inc. arising out of (i) the Share Lending Agreement between LBIE and the Debtors, dated June 26, 2008, and (ii) a related Guarantee of Lehman Brothers Holdings Inc. (together, the LBIE Claims ). Lot 2 included the Debtors real and personal property interests in a plant located in Devens, Massachusetts (the Devens Assets ). Lot 3 included the Debtors core assets, including certain intellectual property rights, real property, contract rights, the name Evergreen Solar, plus $12,884,000 that had been reserved to pay anticipated post closing operating costs for the Debtor s core business (together, the Core Assets ). Lot 4A consisted of all existing solar panel inventory (the Panel Inventory ). Lot 4B consisted of $3,200,000 of cash, $12,295,216 of gross accounts receivable (of which, $9,183,036 has been classified as bad debt), and eight causes of action (together, the Non-Core Assets ). On November 7, 2011, the Debtors conducted the Auction, pursuant to the Bidding Procedures, as amended, previously approved by the Bankruptcy Court, for the sale of (1) the Core Assets, (2) LBIE Claims and (3) Panel Inventory. As a result of the Auction, the Debtors selected highest and best bids for the Core Assets, LBIE Claims and Panel Inventory. The Company and Max Era Properties Limited, or its permitted assigns, as purchaser (the Core Assets Purchaser ), entered into an Asset Purchase Agreement dated as of November 10, 2011 (the Core Assets Purchase Agreement ), pursuant to which the Company agreed to sell the Core Assets to the Core Assets Purchaser. Pursuant to the terms of the Core Assets Purchase Agreement, the Core Assets Purchaser has agreed to purchase the Core Assets for $6,000,000 in cash and $3,200,000 in unrestricted Ordinary Shares of China Private Equity Investment Holdings Ltd., a British Virgin Islands limited company listed on the Alternative Investment Market of London Stock Exchange (the Purchase Price ). The Core Assets Purchaser also agreed to pay cure costs for assumed contracts and to assume various liabilities of the Company. The Core Assets Purchaser also agreed that $12,884,000 of cash (the Lot 3 Cash ) would be excluded from its purchase of Lot 3. The sale of the Core Assets closed on November 18, In connection with the approval of the Core Assets sale and as required by a prior order entered by the Court (such order, the Cash Collateral Order ), the Debtor agreed to distribute the Lot 3 Cash to the Trustee, and the Trustee has now received that amount. The Company and ES Purchaser, or its permitted assigns, as purchaser (the LBIE Claims Purchaser ), entered into an Assignment of Claim Agreement dated as of November 10, 2011 (the LBIE Claims Purchase Agreement ). Pursuant to the terms of

3 the LBIE Claims Purchase Agreement, the LBIE Claims Purchaser agreed to purchase the LBIE Claims for $21,500,000 via a Credit Bid. The LBIE Claims purchase closed on December 1, The Company also agreed to sell the Panel Inventory to Kimball Holdings, LLC for a total of $3,834,000. The Panel Inventory purchase closed on November 18, The Auction continued on November 18, 2011, and ES Purchaser also made an authorized Credit Bid in the amount of $7,000,000 for the Non-Core Assets. The sale of the Non- Core Assets to ES Purchaser was approved by the Bankruptcy Court on November 30, The transaction is expected to close shortly after the date of this notice. The sales of the Panel Inventory and the Non-Core Assets were both approved by the Bankruptcy Court. Pursuant to the Cash Collateral Order previously approved by this Court, the Debtor is required to distribute the proceeds of both of the aforementioned sales to the Trustee. The proceeds of the Panel Inventory are currently being held until all of the Panel Inventory is delivered to Kimball Holdings. The Official Committee of Unsecured Creditors (the Committee ) objected to approval of the Stalking Horse Purchase Agreement and the Debtor s proposed Bidding Procedures on several grounds, including that the proposed Credit Bid covered assets of the Debtor that were not subject to perfected and non-avoidable pre-petition security interests of the Trustee. The assets alleged by the Committee not to be subject to the Trustee s perfected pre-petition security interests included the Debtor s interests in a Chinese joint venture, 35% of the equity of the Debtor in two foreign subsidiaries, certain limited real estate interests, potential commercial tort claims and the Debtor s interests in certain foreign intellectual property rights (the Challenged Collateral ). The resulting Court order approving the Bidding Procedures limited the right of ES Purchaser to Credit Bid for assets not subject to the pre-petition security interests of the Trustee, unless approved in a separate Court order. The proceeds from the sale of the Core Assets, other than the Lot 3 Cash, are being held by the Debtor until the issues surrounding the Challenged Collateral are resolved. An Auction for Lot 2, the Devens Assets, is currently scheduled to occur on December 13, 2011 in Devens, Massachusetts. Questions about the Auction for the Devens Assets may be directed to Brian Lee of Hilco Industrial LLC by blee@hi1cobid.com. Notice of Interim Cash Distribution As indicated above, the Trustee has received the Lot 3 Cash in the amount of $12,884,000 in connection with the sale of the Core Assets to the Core Assets Purchaser. Pursuant to Section of the Indenture the Trustee has fixed December 16, 2011 as the record date for the interim distribution of the Lot 3 Cash (the Record Date ). Accordingly, be advised that the Trustee shall deliver the aggregate amount of $12,884,000, subject to such reservations as it may make in accordance with the Indenture, on or before December 21, 2011, to The Depository Trust Company ( DTC ) for further distribution to Noteholders of record as of the Record Date.

4 As indicated in a prior notice of the Trustee in connection with an earlier interim cash distribution, Section of the Indenture provides that distributions made pursuant to Article 10 of the Indenture shall be applied ratably to outstanding principal and interest owing upon the Notes. The Trustee is reviewing the Indenture to determine the allocation as between interest and principal that is required. The Trustee expressly reserves all rights with respect to the amount of its allowed claim in the bankruptcy case. Future Distributions of Equity Interests Related to the LBIE Claims and Non-Core Assets to Noteholders Under the Original Direction to the Trustee, ES Purchaser was to be converted from a Delaware LLC to a Delaware C corporation and the equity thereof was to be distributed to all Noteholders, in accordance with the Indenture, if a Credit Bid was the prevailing bid at the Auction and a closing occurred. As indicated above, the Stalking Horse Purchase Agreement was modified at the Auction and Credit Bids were submitted on a lot-by-lot basis. When the Core Assets were sold to the Core Assets Purchaser instead of ES Purchaser, the Supporting Noteholders determined that a different organizational structure to hold the LBIE Claims and Non-Core Assets being purchased by ES Purchaser would be more beneficial to all Noteholders. Specifically, Noteholders will be permitted to elect to receive equity in a Cayman Islands limited partnership named Sunshine Enterprises, L.P., a Cayman Islands exempted limited partnership ( Sunshine ) which was established as ES Purchaser s designee and assignee to own and liquidate the LBIE Claims. In the alternative, a Holder may elect to receive its pro rata share of equity in Sunshine Enterprises Blocker L.P., a Cayman Islands exempted limited partnership that will be taxed as a corporation (the Blocker Company ). The Blocker Company will own a pro rata portion of the equity of Sunshine and therefore, each Holder will own its pro rata portion of the LBIE Claims regardless of the entity through which it elects to receive its distribution. $2,700,000 of the cash purchased in the Non-Core Assets will be acquired by Sunshine to defray the anticipated expenses of liquidating or otherwise realizing upon the value of the LBIE Claims. You will be receiving further communications regarding the details of the distribution and your right to make an election as to which equity interest you will receive. ES Purchaser acquired the Non-Core Assets, other than the $2,700,000 of cash acquired by Sunshine. ES Purchaser will not be converted to a Delaware C corporation as originally anticipated. It will remain a Delaware LLC that has elected to be taxed as a corporation. The membership interests in ES Purchaser will be distributed ratably to all Noteholders in accordance with the Indenture. The amount of the aggregate claim in the Bankruptcy Case based upon the Senior Secured Notes has been reduced by the amount of the Credit Bids for the LBIE Claims and Non-Core Assets. Pursuant to the directions of the Supporting Noteholders, the Trustee intends, in connection with the distributions of equity interests discussed above,

5 to request that DTC reduce outstanding balance of the Notes by the aggregate amount of the Credit Bids for the LBIE Claims and the Non-Core Assets. Adversary Proceeding Regarding Challenged Collateral On November 28, 2011, the Committee commenced an adversary proceeding against the Trustee seeking to avoid the pre-petition security interests of the Trustee in the Debtor s foreign intellectual property and potential commercial tort claims. The Trustee is working with the Supporting Noteholders to defend against the claims asserted by the Committee on the grounds that the UCC liens were properly perfected as to the foreign intellectual property and cannot be avoided. The Committee allegations are part of a broader effort to seek a determination that a portion of the Auction proceeds from the Core Assets are not subject to the Trustee s enforceable security interests in this Bankruptcy Case. Any such effort would depend not only on the Committee s success in the adversary proceeding but upon judicial determinations that (i) the Trustee does not hold post-petition security interests in those assets in the form of adequate protection liens granted to it in connection with the Debtor s use of cash collateral during the Bankruptcy Case to protect it against the diminution in value of the Trustee s interests in the property of the Debtor and (ii) an allocation of the Lot 3 proceeds that relate to the foreign intellectual property at issue. Miscellaneous Although the majority of the Debtors assets have been sold as described above, assets do remain in the Debtors bankruptcy estate for further liquidation and distribution. The Bankruptcy Case has not been fully administered and the Trustee is not certain whether a chapter 11 plan will be proposed or confirmed. It remains premature to predict at this time the ultimate recovery of Noteholders in the Bankruptcy Case. All future distributions to Noteholders remain subject to the rights of the Trustee under the Indenture, including but not limited to the Trustee s lien rights. Noteholders with questions about this notice should direct them, in writing, to Charles S. Hodges, Vice President, U.S. Bank National Association, 214 North Tryon Street, 27 th Floor, Charlotte, North Carolina Noteholders with other questions may contact Bondholder Services at (800) , option #4; or, at their web site, located at The Trustee would like to identify and hear the views of all Noteholders, particularly Noteholders who are not one of the Supporting Noteholders and for that reason may not be familiar with the RSA, the Auctions and more generally, the Bankruptcy Case. If you would like to communicate with the Trustee, please submit the Noteholder verification form attached hereto as Exhibit A. If numerous responses are received, the Trustee may set up a telephonic meeting for Noteholders. Notwithstanding any instruction given herein, the Trustee reserves all rights it may have in the Bankruptcy case. The Trustee may conclude that a specific response to particular

6 inquiries from individual Noteholders may not be appropriate either because the disclosure in question may not be in the best interest of all Noteholders or may not be consistent with the equal and full dissemination of information to all Noteholders. The Trustee makes no recommendations and gives no investment advice, and Noteholders should not rely upon the Trustee as their sole source of information for any decisions in relation to the Notes. U.S. Bank National Association, December 14, 2011 as Trustee *Trustee is not responsible for the selection or use of CUSIP. It is included solely for holder convenience.

7 Via Facsimile Exhibit A NOTEHOLDER VERIFICATION FORM To: Re: Charles S. Hodges Vice President U.S. Bank National Association Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes ) The undersigned hereby certifies that the undersigned is a holder, beneficial holder, or a representative of a beneficial holder of the above-referenced Notes and represents the following information to be true and correct. Please complete the following information (Please print or type information) 1. State the Principal Amount of Notes Owned of: $ 2. Notes are held through DTC Participant:, Account Number: 3. Name of Beneficial Holder: Mailing Address: Telephone: ( ) Fax: ( ) Address: (if available) Name of Representative (if different) Signature: Date: