SOURCE: Hoku Scientific, Inc.; Dynamic Engineering, Inc.

October 09, 2007 08:00 ET

Hoku Scientific Announces TCS Engineering Contract for Hoku Materials' Polysilicon Plant

POCATELLO, ID and STURGIS, MI--(Marketwire - October 9, 2007) - Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Dynamic Engineering, Inc., a process technology and engineering firm, today announced that they have entered into an Engineering Services & Technology Transfer Agreement for Dynamic Engineering to provide design and engineering services, and a technology license, for Hoku Materials to build a trichlorosilane production and purification unit at its planned polysilicon production plant in Pocatello, Idaho. Trichlorosilane, or TCS, is produced through the chlorination and purification of metallurgical-grade silicon, and is the primary material used to produce polysilicon in a Siemens reactor. The agreement announced today provides for Dynamic to provide the basic engineering package and related services for the TCS production component of Hoku's planned polysilicon plant, which will be integrated by Stone & Webster Inc., a subsidiary of The Shaw Group Inc., and Hoku's engineering, procurement and construction management firm, into the overall polysilicon production facility, and will be constructed by JH Kelly, Hoku's general construction contractor.

"We are pleased to have signed this TCS engineering agreement with Dynamic Engineering, which we believe will enable us to efficiently produce high purity TCS in our planned closed-loop polysilicon production plant," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "We expect that our polysilicon production costs will be lower if we produce our own TCS on-site, instead of purchasing it from third-party vendors."

Lee Kennedy, President of Dynamic Engineering, said, "We are impressed with Hoku's team and their approach to building a polysilicon plant, and we look forward to working with them on this exciting project."

About Hoku Scientific, Inc.

Hoku Scientific (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar is marketing and plans to install turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information, visit www.hokuscientific.com.

About Dynamic Engineering, Inc.

Dynamic Engineering is a knowledge-based services company offering process technology, engineering, quality systems, and construction management services to clients in various industries. Dynamic Engineering began serving the pharmaceutical, biotech, food and chemical industries in 1985, and provides process definition packages and basic engineering design as well as start-up assistance, training and optimization consulting for the manufacture of trichlorosilane. It offers full service engineering services from its headquarters in Sturgis, Michigan, and project offices in Michigan, Georgia and Shanghai, China. For more information, visit www.dynamicengineer.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials' ability to successfully raise sufficient funds to establish polysilicon manufacturing facilities; its ability to engineer and construct a production plant for polysilicon, including the integration of trichlorosilane production processes engineered by Dynamic Engineering Inc.; its ability to manufacture polysilicon; the purity of the trichlorosilane to be manufactured, and the efficiency of the trichlorosilane production process to be designed by Dynamic Engineering Inc.; Hoku Materials' ability to meet the delivery schedule in its customer contracts; the quality of polysilicon to be manufactured; Hoku Materials' costs to manufacture polysilicon and trichlorosilane, and its ability to offer pricing that is competitive with competing products; Hoku Scientific's future financial performance; Hoku Scientific's business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Hoku Scientific's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in Hoku Scientific's filings with the Securities and Exchange Commission. Except as required by law, Hoku Scientific assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Hoku, Hoku Solar, Hoku Fuel Cells, and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., and Hoku Materials is the trademark of Hoku Materials, Inc., all rights reserved. All other trademarks, service marks and trade names used herein are the property of their respective owners.

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