Solazyme Reports Fourth Quarter and Full Year 2012 Results

  Solazyme Reports Fourth Quarter and Full Year 2012 Results

        On Track for Commercial Production on Three Continents by 2014

              Continued Development of High Value Tailored Oils

                    Technology Proven at Commercial Scale

                    Algenist^® Sales Increase 129% in 2012

Business Wire

SOUTH SAN FRANCISCO, Calif. -- February 20, 2013

Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company,
announced today results for the fourth quarter and full year ended December
31, 2012.

“2012 was a great year for Solazyme with strong progress executing against our
technology, production and commercialization goals,” said Jonathan Wolfson,
CEO of Solazyme. “These achievements, combined with our successful financing
initiatives and our newest joint development agreement with Mitsui, provide a
strong foundation that supports our path to commercial scale production. That
path includes producing our high value tailored oils on three continents by
early 2014. Our confidence in delivering on our plans is supported by our
proven technology, strong balance sheet and our outstanding group of

Financial Results

Total revenue for the fourth quarter ended December 31, 2012 was $8.4 million
compared with $14.9 million in the fourth quarter of 2011. Fourth quarter GAAP
net loss attributable to Solazyme, Inc. common stockholders was $24.6 million,
which compares with net loss of $15.6 million in the prior year period. On a
non-GAAP basis, the net loss was $21.5 million for the fourth quarter of 2012,
compared with net loss of $12.2 million in the prior year quarter. A
reconciliation of GAAP to non-GAAP results is included below.

Total revenue for the year ended December 31, 2012 was $44.1 million compared
with $39.0 million in the prior year. Full year 2012 GAAP net loss
attributable to Solazyme, Inc. common stockholders was $83.1 million, compared
with $54.0 million in the prior year. On a non-GAAP basis, the net loss was
$70.0 million for 2012, compared with $39.4 million in 2011.

“The recent completion of our convertible debt offering and approval of $120
million in financing for our Solazyme Bunge Renewable Oils facility in Brazil
enhance our capital flexibility as we pursue the significant growth
opportunities that lie ahead,” said Tyler Painter, CFO of Solazyme. “In 2013
we are focused on completing our manufacturing facilities and executing on our
commercialization strategy for sales of our high value tailored oils, which we
expect to drive meaningful growth in 2014.”

Recent Business Highlights

  *Joint Development Agreement with Mitsui: Solazyme and Mitsui & Co., Ltd.
    entered into a $20 million, multi-year agreement to jointly develop a
    suite of triglyceride oils for use primarily in the oleochemical industry.
    Together the companies will work to advance the development of Solazyme's
    high-myristic algal oil as well as additional oils targeting the
    oleochemical and industrial sectors.
  *Successful Fermentation in 500,000 Liter Vessels at ADM facility: Solazyme
    successfully completed multiple initial fermentation runs at 
    Archer-Daniels-Midland Company’s (ADM’s) facility in Clinton, Iowa. During
    the runs, Solazyme achieved commercial scale production metrics, exhibited
    linear scalability of its process from laboratory scale, and achieved
    commercial scale without contamination.
  *Solazyme Bunge Renewable Oils Receives Approval for $120 Million in
    Project Financing: The joint venture between Solazyme and Bunge Global
    Innovation LLC (“Bunge”), a wholly owned subsidiary of Bunge Limited,
    received approval for approximately $120 million in project financing from
    the Brazilian National Development Bank (BNDES) to support its first
    commercial scale renewable oil production facility in Brazil.
  *Completion of Convertible Senior Subordinated Notes Offering: Solazyme
    successfully completed its offering of 6% Convertible Senior Subordinated
    Notes due 2018, raising $125 million in gross proceeds. The Company
    intends to use the proceeds to fund project related costs and capital
    expenditures and for general corporate purposes.

2012 Highlights

  *Development of New Tailored Oils: Solazyme continued to expand its
    technology platform through the development of multiple high value oils
    including its high oleic oil, high myristic oil and cocoa butter
  *Successful Partnership with Bunge: Following the formation of a joint
    venture in April, Solazyme and Bunge successfully broke ground on their
    100,000 metric ton renewable oils production facility in Brazil in June.
    In November, Solazyme and Bunge entered into a joint venture expansion
    framework agreement targeting 300,000 metric tons at select Bunge owned
    and operated processing facilities worldwide. In addition, the partners
    added a joint market development commitment in tailored food oils.
  *Formation of Strategic Collaboration with Archer-Daniels-Midland (ADM):
    Solazyme signed strategic collaboration, manufacturing and market
    development agreements with ADM. Solazyme and ADM will produce tailored
    oils from ADM’s Clinton, Iowa facility. In this capital efficient
    manufacturing partnership, Solazyme will initially target the production
    of 20,000 metric tons of oil in 2014, with an aim to increase production
    to 100,000 metric tons of oil in subsequent years.
  *Solazyme Roquette Nutritionals Progress: The Solazyme Roquette
    Nutritionals (SRN) Joint Venture ran the Phase I facility, producing
    products for sales and sampling, and broke ground on its Phase 2
    production facility in Lestrem, France. SRN also launched Almagine™ HL and
    Almagine^TM HP food ingredients and received a ‘no questions’ notification
    from the FDA on algal oil.
  *Commissioning of Integrated Biorefinery in Peoria: Solazyme successfully
    commissioned its first integrated biorefinery (IBR) in Peoria, Illinois.
    Solazyme began the integrated production of tailored algal oils during the
    second quarter of 2012.
  *Strong Algenist^® Sales Growth: Solazyme continued to grow Algenist, its
    commercial skincare brand. Algenist revenues totaled $16.5 million in
    2012, a 129% increase versus 2011. Algenist also won the QVC Rising Star
    Brand award, and expanded the product line during the year, finishing 2012
    with 18 SKUs.

Conference Call

Solazyme will hold a conference call for investors on February 20 at 1:30 p.m.
PT (4:30 p.m. ET). Investors may access the call by dialing 973-409-9250. A
live webcast of the call will be available from the Investor Relations section
of A recording of the call will also be available by calling
404-537-3406; access code 96880758 beginning approximately two hours after the
call, and will be available for one week. A webcast replay from today’s call
will also be available from the Investor Relations section of
approximately two hours after the call and will be available for up to thirty

About Solazyme, Inc.

Solazyme, Inc. (SZYM) is a renewable oil and bioproducts company that
transforms a range of low-cost plant-based sugars into high-value oils.
Headquartered in South San Francisco, Solazyme's renewable products can
replace or enhance oils derived from the world's three existing sources –
petroleum, plants and animal fats. Initially, Solazyme is focused on
commercializing its products into three target markets: (1) fuels and
chemicals, (2) nutrition and (3) skin and personal care.

Solazyme®, the Solazyme logo and other trademarks or service names are
trademarks of Solazyme, Inc.

Non-GAAP Financial Measures

This press release includes the following financial measure defined as a
“non-GAAP financial measure” by the Securities and Exchange Commission:
non-GAAP net loss. This measure may be different from non-GAAP financial
measures used by other companies. The presentation of this financial
information, which is not prepared under any comprehensive set of accounting
rules or principles, is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in accordance
with generally accepted accounting principles. For a reconciliation of this
non-GAAP financial measure to the nearest comparable GAAP measure, see
“Reconciliation of GAAP to Non-GAAP Basic Net-Loss Per Share” included in the
tables to this press release.

This non-GAAP measure is provided to enhance investors’ overall understanding
of Solazyme’s current financial performance and Solazyme’s prospects for the
future. Specifically, Solazyme believes the non-GAAP measure provides useful
information to both management and investors by excluding certain expenses
that may not be indicative of its core operating results and business outlook.

For its internal budgeting process, Solazyme’s management uses financial
measures that do not include stock-based compensation expense or special
expenses such as non-cash gains or losses due to warrant revaluations. In
addition to the corresponding GAAP measures, Solazyme’s management also uses
the foregoing non-GAAP measure in reviewing the financial results of Solazyme.
Solazyme excludes stock-based compensation expenses and special non-cash
charges from its non-GAAP measures primarily because they are non-cash
expenses that management does not believe are reflective of ongoing operating

Forward Looking Statements

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 about
Solazyme, including statements that involve risks and uncertainties
concerning: its commercialization plans and commercialization timetable for
tailored oils; market opportunities; selling prices for products; the capacity
of planned facilities; the timetable for bringing facilities online;
development of additional tailored oils; meeting commercialization and
technology targets; and Solazyme’s ability to maintain its relationships with
its partners. When used in this press release, the words “will”, “expects”,
“intends” and other similar expressions and any other statements that are not
historical facts are intended to identify those assertions as forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Any such statement may be influenced by a variety of factors, many of
which are beyond the control of Solazyme, that could cause actual outcomes and
results to be materially different from those projected, described, expressed
or implied in this press release due to a number of risks and uncertainties.
Potential risks and uncertainties include, among others: Solazyme’s limited
operating history; its limited history in commercializing products;
implementation risk in deploying new technologies; its limited experience in
constructing and operating commercial manufacturing facilities; market
acceptance of its products; its ability to sell its products at a profit;
delays related to construction or start-up of production facilities; its
access to adequate supply of feedstock on favorable terms; its ability to
manage operational costs at production facilities; its ability to enter into
and maintain strategic collaborations; its ability to obtain requisite
regulatory approvals; and its access, on favorable terms, to any required
financing. Accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what impact they will have on the results of operations or
financial condition of Solazyme.

In addition, please refer to the documents that Solazyme, Inc. files with the
Securities and Exchange Commission, including its Quarterly Reports on Form
10-Q, as updated from time to time, for a discussion of these and other risks.
You are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date of this press release. Solazyme is not under
any duty to update any of the information in this press release.

In thousands, except per share amounts
                            Three Months Ended         Twelve Months Ended
                            December 31,               December 31,
                             2012      2011         2012      2011    
Research and development    $ 3,811     $ 8,251        $ 27,649    $ 26,793
Product revenues              4,613       1,638          16,459      7,173
License fees                  -           5,000          -           5,000
Total revenues                8,424       14,889         44,108      38,966
Costs and operating
expenses (1)
Cost of product revenue       1,404       828            5,311       2,420
Research and development      16,108      16,921         66,384      45,613
Sales, general and           15,888    12,835       57,516    41,426  
Total costs and operating     33,400      30,584         129,211     89,459
Loss from operations          (24,976 )   (15,695 )      (85,103 )   (50,493 )
Other income (expense)
Interest and other income     249         114            1,511       229
(expense), net
Loss from equity method       (631    )   -              (1,824  )   -
Gain (loss) from change in
fair value of warrant        748       -            2,284     (3,637  )
Total other income            366         114            1,971       (3,408  )
Net loss                      (24,610 )   (15,581 )      (83,132 )   (53,901 )
Accretion of redeemable      -         -            -         (60     )
convertible preferred stock
Net loss attributable to
Solazyme, Inc. common       $ (24,610 ) $ (15,581 )    $ (83,132 ) $ (53,961 )
Net loss per share
attributable to Solazyme,
Inc. common                 $ (0.40   ) $ (0.26   )    $ (1.37   ) $ (1.35   )
stockholders, basic and
Weighted average number of
common shares used in loss
per                           60,873      59,703         60,509      39,934
share computation, basic
and diluted

In thousands, except per share amounts
                    Three Months Ended             Twelve Months Ended
                    December 31,                   December 31,
                     2012       2011           2012       2011    
Net loss
attributable to
Solazyme, Inc.      $ (24,610 )   $ (15,581 )      $ (83,132 )   $ (53,961 )
(Gain) loss from
change in fair        (748    )     -                (2,284  )     3,637
value of warrant
(1) Operating
expenses include
expense as
Research and          985           846              3,924         2,413
Sales, general
and                  2,859      2,502          11,478     8,510   
Total stock-based
compensation          3,844         3,348            15,402        10,923
Net loss
attributable to
Solazyme, Inc.
stockholders        $ (21,514 )  $ (12,233 )      $ (70,014 )  $ (39,401 )
Basic and diluted
loss per share
attributable to
Solazyme, Inc.
common              $ (0.40   )   $ (0.26   )      $ (1.37   )   $ (1.35   )
(Gain) loss from
change in fair        (0.01   )     -                (0.04   )     0.09
value of warrant
compensation         0.06       0.06           0.25       0.27    
Net loss per
attributable to
Solazyme, Inc.
stockholders        $ (0.35   )  $ (0.20   )      $ (1.16   )  $ (0.99   )

In thousands
                                               December 31,       December 31,
                                                  2012           2011
Current assets
Cash, cash equivalents and marketable          $   149,005        $   243,724
Other current assets                               16,274             15,169
Total current assets                               165,279            258,893
Property, plant and equipment - net                32,225             25,985
Other assets                                       19,520             346
Total assets                                   $   217,024     $   285,224
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt              $   7,331          $   5,289
Other current liabilities                          17,607             23,923
Total current liabilities                          24,938             29,212
Other liabilities                                  1,138              491
Long-term debt                                    7,637          14,963
Total liabilities                                 33,713         44,666
Total stockholders' equity                         183,311            240,558
Total liabilities and stockholders' equity     $   217,024     $   285,224


Solazyme, Inc.
Corporate Communications:
Genet Garamendi
Brainerd Communicators, Inc.
Jeff Majtyka, 212-986-6667
Brad Edwards, 212-986-6667
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