SOURCE: Hoku Scientific, Inc.

January 02, 2008 08:05 ET

Hoku and Sanyo Amend Polysilicon Supply Agreement

POCATELLO, ID--(Marketwire - January 2, 2008) - Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc., (NASDAQ: HOKU) established to manufacture and sell polysilicon for the solar market, today announced an amendment to its polysilicon supply agreement with SANYO Electric Co., Ltd., to extend the date for Hoku to complete the financing for its planned polysilicon plant. Under the terms of the amendment, Hoku or SANYO may terminate the supply agreement if Hoku has not secured financing for its polysilicon plant by February 15, 2008, which is a six week extension from the previous deadline of December 31, 2007.

"SANYO continues to demonstrate their support for our project by providing us the flexibility we need to complete the financing of our plant without added time pressures," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "We continue to commit capital to the design and engineering of our plant, and to the purchase of long lead-time items such as the reactors, to stay on schedule for our planned 2009 product deliveries."

In December, Hoku Scientific announced that it had signed a non-binding term sheet with Merrill Lynch Pierce Fenner & Smith Inc. for Hoku Materials to borrow up to approximately $185 million for the construction, procurement and start-up of its planned polysilicon production plant in Pocatello, Idaho.

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 markets, sells and installs 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.

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 by February 15, 2008, if at all, to establish polysilicon manufacturing facilities, including the final decision of Merrill Lynch Pierce Fenner & Smith Inc. to provide the loan to Hoku Materials, and the final amount of the loan to Hoku Materials, if at all; the terms and conditions that may be included in the loan and collateral documents; Hoku Materials' ability to engineer and construct a production plant for polysilicon; its ability to manufacture polysilicon; its cost to procure a polysilicon production facility; Hoku Materials' ability to meet the delivery schedules in its customer contracts in general, and to begin shipping products in 2009, in particular; it's ability to successfully achieve the milestones in its contract with SANYO Electric, Co., Ltd.; the quality of polysilicon to be manufactured; Hoku Materials' costs to manufacture polysilicon, 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.

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