Net revenues for the quarter were $252.4 million, compared to net revenuesof $97.4 million for the third quarter of 2007 and $212.6 million for thesecond quarter of 2008.

Net income for the quarter on a GAAP basis was $11.1 million, or $0.31 perdiluted share, compared to $0.5 million, or $0.02 per diluted share, for thethird quarter of 2007 and $10.5 million, or $0.36 per diluted share, for thesecond quarter of 2008. The non-GAAP net income for the quarter was $0.41 perdiluted share and excludes stock based compensation.

Dr. Shawn Qu, Chairman and CEO of CSI, commented: "We are pleased with ourtop line, gross margin and operating income results for the quarter. Theseresults directly reflected our conservative approach to the business and ourbalanced financial management. This marks our sixth consecutive quarter ofsequential top-line growth. We have successfully ramped up the production ofour proprietary low-cost e-Modules products, which helped us to maintain ourgross margin in the quarter. We are, however, operating in a challengingmacroeconomic environment with a very volatile foreign exchange situation,which continues to impact our bottom line. In July, we took measures to hedgeagainst our currency risk, which we believe will help to offset the impact ofEuro against US Dollar foreign exchange fluctuations in Q4 and in Q1 2009."

Revenue by Geographical Location (US $ millions) Q308 Q208 Q307 Region Revenue % Revenue % Revenue % Europe 222.4 88.1% 188.3 88.6% 93.0 95.5% Asia 16.5 6.5% 13.1 6.2% 4.1 4.2% America 13.5 5.4% 11.2 5.2% -- -- Others -- -- -- -- 0.3 0.3% Total Net Revenue 252.4 100% 212.6 100% 97.4 100% Outlook -- On the basis of Q4 expectations the Company is reverting to May guidance for FY 2008 of $650-750 million in revenue. -- Guiding down Q4 expectations for shipments, margins and earnings. -- Conditionally re-iterating 2009 shipment and margin guidance of 500 to 550 MW with margins of 13-15%. -- E-Module average conversion efficiency is now 14.2% with improved production yield. Further improvements are expected. -- Capacity expansions will be slowed or delayed pending further evaluation of supply and demand environment. Given the uncertainty of project and customers' financing coupled withsoftening solar market demand in Europe and USA at the year-end, the Companyhas shifted its short-term operational emphasis to preserving cash andminimizing risk from the credit environment. Based on this adjustment, Q4shipments are estimated to be approximately 20 - 25 MW. This will result inrevenues of approximately $70 million to $85 million. Accordingly, the Companyis returning to its previously stated May annual revenue estimate of $650-750million.

The Company continues to achieve significant progress on its proprietarylow-price e-Modules with average UMG e-cell conversation efficiency increasingto 14.2% in recent weeks. The yield also continues to improve and rawmaterials cost per watt has declined. We expect these improvements to continuein the coming quarters. While the Company has secured sufficient UMG feedstockto produce at least 25 MW of e-Modules in Q4, market and credit conditions maylead the Company to implement a more conservative production plan and shiponly 6~8 MW.

Our ingot and wafer plant will be completed to support the e-Moduleprogram, but on a more modest schedule. We have postponed further expansionsof our cell plant past the current capacity of approximately 270 MW. We willrevisit our capital expenditures in the coming months, depending on the marketdemand, margins and supply prices.

Due to the present market environment, adjustments to the balance sheetmay be necessary in order to reflect the market value of inventory andreceivables that could result in a net loss for the 4th quarter of 2008.

The Company has maintained a sound cash position and one of the best debt-equity ratios in the solar industry. In Q4, the expectation is to beoperationally cash-flow positive and to maintain a cash position ofapproximately $100M. The Company anticipates that it will have $40 millionavailable in unused credit lines by the end of Q4 and is actively negotiatingmore credit facilities with local banks. The Company believes that itsbalanced financial management strategy will help to mitigate risks, andpreserve an adequate cash position in order to respond to future growthopportunities.

For 2009, The Company is maintaining its guidance of 500-550 MW. Based ondiscussions with its long-term customers and suppliers it believes that it canprice both its traditional high-efficiency modules and the low-price e-Modulescompetitively while maintaining gross margins of 13 - 15%. These estimates arecontingent on the following factors: First, wafer and silicon prices declineto a realistic level, consistent with the Company's expectations; and second,the availability and the cost of project financing. PV projects are a highlycreditworthy asset class, and customers have to date been able to financetheir 2009 projects under reasonable terms. However, a substantial increase inthe cost of capital could put further pressure on module prices, while adecline in availability of debt or equity would impact demand. It isanticipated that the PV market will recover starting in Q2 or Q3 of 2009 withfewer but stronger players. The Company believes that the decline in averageselling prices of solar modules has already prompted rapid pricing adjustmentsacross the entire supply chain. This is a healthy development for the industryin the longer term. Canadian Soar, as one of the major world-wide solar celland module producer we expect to benefit from this development and furthersolidify our industry position.

Shawn Qu CEO, remarked: "Canadian Solar is the first and probably the onlymajor solar company to adopt and maintain a flexible vertical integrationbusiness model. This model is an important component of our strategy and hasproven to be a key advantage in a volatile environment as it allows us toquickly adjust our expenditures and to take advantage of cost declines at anypoint in the supply chain. Our unique product mix is another component of ourstrategy and a key differentiator in the industry for Canadian Solar. Our e-Modules are a lower priced and higher margin product line, even withsignificantly lower poly-silicon costs. Third, our modest capital plant andlow fixed costs enables us to quickly turn operational cash positive in amarket downturn. These three components together allow us to rapidly changeour purchasing mix, our product mix and our total output depending on themarket conditions. We will use this flexibility to protect our margins andpreserve cash so that we can capitalize on opportunities to capture marketshare once the market resumes growing."

Arthur Chien, CFO of CSI, noted: "We have delayed our capital expenditurestemporarily in order to conserve cash as the Company currently has both amplecapacity and wafer supply to match the current market demand. We do notforesee the need for additional capital expenditures until the first or secondquarter of next year. We will revisit capital expenditures as the marketconditions warrant it. We currently have a sound cash position with more than$100 M cash in hand, positive cash flow and additional lines of credit withlocal banks. We established an active hedge against the Euro in July, with acurrent hedge of more than 100 M Euro for Q4 cash flow, which will be settledNovember through January. We will continue our hedging policy going forward,which will provide visibility and some mitigation of foreign exchange risks."

Investor Conference Call / Webcast Details

A conference call has been scheduled for Friday, November 21, 2008 at 8:00a.m. ET or Friday, November 21, 2008, 9:00 p.m. Jiangsu time. During the call,time will be set-aside for analysts and interested investors to ask questionsof senior executive officers of the Company.

The dial-in number for the live audio call is +1-800-299-7098 (U.S) or +1-617-801-9715 (International). The passcode is 14729383. A live webcast of theconference call will be available on Canadian Solar's website athttp://www.csisolar.com .

A replay of the call will be available 1 hour after the conclusion of theconference call, for one week, through 11:00 p.m. on Friday, November 28, 2008(in Jiangsu) or 10:00 a.m. on Friday, November 28, 2008 (in New York) athttp://www.csisolar.com and by telephone at +1-888-286-8010 (U.S.) or +1-617-801-6888 (International). The passcode to access the replay is 22054834.

About Canadian Solar Inc. (Nasdaq: CSIQ)

Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integratedmanufacturer of solar cell, solar module and custom-designed solar applicationproducts serving customers worldwide. CSI is incorporated in Canada andconducts its businesses worldwide and manufacturing operations in China.Backed by years of experience and knowledge in the solar power market and thesilicon industry, CSI has become a major global provider of solar powerproducts for a wide range of applications. For more information, please visithttp://www.csisolar.com .

Safe Harbor/Forward-Looking Statements

Certain statements in this press release including statements regardingexpected future financial and industry growth are forward-looking statementsthat involve a number of risks and uncertainties that could cause actualresults to differ materially. These statements are made under the "SafeHarbor" provisions of the U.S. Private Securities Litigation Reform Act of1995. In some cases, you can identify forward-looking statements by suchterms as "believes," "expects," "anticipates," "intends," "estimates," thenegative of these terms, or other comparable terminology. Factors that couldcause actual results to differ include general business and economicconditions and the state of the solar industry; governmental support for thedeployment of solar power; future shortage or availability of the supply ofhigh-purity silicon; demand for end-use products by consumers and inventorylevels of such products in the supply chain; changes in demand fromsignificant customers, including customers of our silicon materials sales;changes in demand from major markets such as Germany; changes in customerorder patterns; changes in product mix; capacity utilization; level ofcompetition; pricing pressure and declines in average selling price; delays innew product introduction; continued success in technological innovations anddelivery of products with the features customers demand; shortage in supply ofmaterials or capacity requirements; availability of financing; exchange ratefluctuations; litigation and other risks as described in the Company's SECfilings, including its annual report on Form 20-F originally filed on May 29,2007. Although the Company believes that the expectations reflected in theforward looking statements are reasonable, it cannot guarantee future results,level of activity, performance, or achievements. You should not place unduereliance on these forward-looking statements. All information provided inthis press release is as of today's date, unless otherwise stated, andCanadian Solar undertakes no duty to update such information, except asrequired under applicable law.

FINANCIAL TABLES BELOW Q3 2008 Q2 2008 Q3 2007 2008 1~9 2007 1~9 Net Revenues - Products 252,362 212,585 97,437 636,183 175,339 Cost Of Revenues - Products 213,256 179,509 91,088 535,765 166,172 Gross Profit 39,106 33,076 6,349 100,418 9,167 Operating Expenses: Selling Expenses 3,482 2,852 2,214 8,839 4,560 General And Administrative Expenses 9,267 6,485 4,527 21,178 11,378 Research And Development Expenses 603 447 287 1,352 677 Total Operating Expenses 13,352 9,784 7,028 31,369 16,615 Income/(Loss) From Operations 25,754 23,292 (679) 69,049 (7,448) Other Income/(Expenses): Interest Expenses (3,379) (3,162) (601) (8,787) (943) Interest Income 819 59 70 979 396 Debt Conversion Expenses -- (10,170) -- (10,170) -- Gain On Change In fair Value Of Derivatives 7,424 -- -- 7,424 -- Others - Net (17,298) (600) 1,716 (9,724) 1,716 Income/(Loss) Before Taxes 13,320 9,419 506 48,771 (6,279) Income Taxes (2,250) 1,127 16 (8,158) 77 Net Income/(Loss) 11,070 10,546 522 40,613 (6,202) Basic Earnings/(Loss) Per Share $0.32 $0.38 $0.02 $1.35 ($0.23) Basic Weighted Average Number of Outstanding Shares 34,802,363 28,085,875 27,290,298 30,110,549 27,279,021 Diluted Earnings/(Loss) Per Share $0.31 $0.36 $0.02 $1.30 ($0.23) Diluted Weighted Average Number of Outstanding Shares 35,580,187 29,384,701 27,416,859 31,146,591 27,279,021 Canadian Solar Inc. Reconciliation of US GAAP Gross Profit, Operating Income (Loss) and Net Income (Loss) to Non-US GAAP Gross Profit, Operating Income (Loss) and Net Income (Loss) (Unaudited) Use of Non-GAAP Financial Information To supplement its condensed consolidated financial statements presented in accordance with GAAP, CSI uses the following measures as defined as non- GAAP financial measures by the SEC: adjusted gross profit, adjusted operating income (loss) and adjusted net income (loss), each excluding share-based compensation and other one-time non-cash charges, expenses or gains, which we refer to as special items. CSI believes that non-GAAP adjusted gross profit, adjusted operating income (loss) and adjusted net income (loss) measures indicate the company's baseline performance before subtracting those charges. In addition, these non-GAAP measures are among the primary indicators used by the management as a basis for its planning and forecasting of future periods. The presentation of these non-GAAP measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Q3 2008 Q2 2008 Gross Operating Net Gross Operating Net Profit Income Income Profit Income Income (Loss) (Loss) (Loss) (Loss) US GAAP Profit/(Loss) 39,106 25,754 11,070 33,076 23,292 10,546 Share-Based Compensation 86 3,538 3,538 88 2,336 2,336 Debt Conversion Expenses -- -- -- -- -- 10,170 Total Special Items 86 3,538 3,538 88 2,336 12,506 Non-US GAAP Profit 39,192 29,292 14,608 33,164 25,628 23,052 Non-US GAAP Earnings Per Diluted Share $0.41 $0.78 Adjusted Gross Margin 15.53% 15.60% Adjusted Operating Margin 11.61% 12.06% Q3 2007 Gross Operating Net Profit Income Income (Loss) (Loss) US GAAP Profit/(Loss) 6,349 (679) 522 Share-Based Compensation 36 2,428 2,428 Debt Conversion Expenses -- -- -- Total Special Items 36 2,428 2,428 Non-US GAAP Profit 6,385 1,749 2,950 Non-US GAAP Earnings Per Diluted Share $0.11 Adjusted Gross Margin 6.55% Adjusted Operating Margin 1.80% 2008 Q1-Q3 2007 Q1-Q3 Gross Operating Net Gross Operating Net Profit Income Income Profit Income Income (Loss) (Loss) (Loss) (Loss) US GAAP Profit/(Loss) 100,418 69,049 40,613 9,167 (7,448) (6,202) Share-Based 265 8,073 8,073 162 7,018 7,018 Compensation Debt Conversion -- -- 10,170 -- -- -- Expenses Total Special Items 265 8,073 18,243 162 7,018 7,018 Non-US GAAP 100,683 77,122 58,856 9,329 (430) 816 Profit/(Loss) Non-US GAAP Earnings Per Diluted Share $1.89 $0.03 Adjusted Gross 15.83% 5.32% Margin Adjusted Operating Margin 12.12% -0.25% Non-US GAAP adjusted condensed consolidated statements of operations are intended to present the Company's operating results, excluding special items. Canadian Solar Inc. Unaudited Condensed Consolidated Balance Sheets (In Thousands of U.S. Dollars) 30-Sep-2008 31-Dec-2007 ASSETS Current assets: Cash And Cash Equivalents 108,914 37,667 Restricted Cash 28,190 1,625 Accounts Receivable, Net 153,117 58,637 Inventories 101,631 70,921 Value-Added Tax Recoverable 21,177 12,247 Advances To Suppliers 44,855 28,745 Financial Instruments Related To Foreign Currency Options 7,424 -- Prepaid and Other Current Assets 14,674 10,058 Total Current Assets 479,982 219,900 Property, Plant and Equipment, Net 137,609 51,486 Intangible Assets 230 136 Long-Term Deferred Assets 39 3,296 Long-Term Portion Of Advances To Suppliers 42,666 4,103 Prepaid Lease Payments 12,549 1,616 Deferred Tax Assets - Non-Current 7,561 3,966 TOTAL ASSETS 680,636 284,503 LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities: Short-Term Borrowings 127,234 40,374 Accounts Payable 19,086 8,251 Other Payables 21,411 6,153 Advances From Customers 9,446 1,962 Income Tax Payable 5,502 143 Amounts Due To Related Parties 30,266 209 Other Current Liabilities 8,903 2,121 Total Current Liabilities 221,848 59,213 Accrued Warranty Costs 10,191 3,879 Provision For Uncertain Tax Issue 3,530 2,278 Convertible Notes 1,000 75,000 Long-Term Debt 63,165 17,866 TOTAL LIABILITIES 299,734 158,236 Stockholders' Equity Common Shares 293,947 97,454 Additional Paid-In-Capital 34,509 26,436 Retained Earnings/(Losses) 37,008 (3,604) Accumulated Other Comprehensive Income 15,438 5,981 TOTAL STOCKHOLDERS' EQUITY 380,902 126,267 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 680,636 284,503 For more information, please contact: In Canada Alex Taylor, IR Director Canadian Solar Inc. Tel: +1-905-530-2334 Fax: +1-905-530-2001 Email: ir@csisolar.com In the U.S. John Robertson The Ruth Group Tel: +1-646-536-7024 Email: jrobertson@theruthgroup.comSOURCE Canadian Solar Inc.