SOURCE: Hoku Scientific, Inc.; Solar-Fabrik AG

February 06, 2007 08:00 ET

Hoku Scientific and Solar-Fabrik Announce Plan to Increase Volume of Polysilicon Supply Agreement

KAPOLEI, HI and FREIBURG, GERMANY -- (MARKET WIRE) -- February 6, 2007 -- Hoku Materials, a division of Hoku Scientific, Inc. (NASDAQ: HOKU) established to manufacture and sell polysilicon for the solar market, and Solar-Fabrik AG (XETRA: SFXG), a vertically integrated solar power company, today announced that they have increased the total amount of their planned contract to approximately $175 million, and have extended their mutual deadline to finalize a polysilicon supply agreement.

On December 5, 2006, the parties announced that they had signed a non-binding Memorandum of Understanding ("MOU") whereby Hoku would supply polysilicon chunks to Solar-Fabrik over a fixed number of years at pre-determined pricing on a non-cancelable order. The MOU provided that sales of polysilicon were expected to generate between $120 and $140 million in revenue for Hoku over a several-year period commencing in approximately two years. The parties intended to conclude a definitive agreement within 60 days after signing the MOU. Based on continuing discussions and negotiations, the parties have decided to increase the total amount of the contract to approximately $175 million, and have provided for additional time to complete the definitive agreement. The parties intend to sign a definitive agreement within the next few weeks.

"In light of the positive progress that Hoku has made over the past few months with its polysilicon project, and our continuing discussions, we have decided to increase the volume of our planned polysilicon purchases from Hoku," said Christoph Paradeis, CEO of Solar-Fabrik. "Due to the modified structure of our planned agreement with Hoku, we requested additional time to finalize the contract."

"Based on recent developments in our contract discussions with Solar-Fabrik, we were pleased to offer them an additional allocation of our planned polysilicon production output," said Dustin Shindo, Chairman and CEO of Hoku Scientific. "We look forward to finalizing the agreement within the next few weeks."

About Hoku Scientific, Inc.

Hoku Scientific (NASDAQ: HOKU) is a clean energy technologies company that develops and manufactures fuel cell membranes and membrane electrode assemblies for stationary (including residential and back-up power applications) and automotive proton exchange membrane fuel cells. The Company is currently expanding its business to manufacture solar modules and polysilicon for the solar market. For more information visit www.hokuscientific.com.

About Solar-Fabrik AG

Solar-Fabrik has grown in only a decade from a solar panel maker to an internationally focused, stock market-listed, fully integrated solar power group. Solar-Fabrik and its subsidiaries and associates span the entire solar power value chain: wafer trading, wafer recovery, solar cell manufacture, solar module production and system solutions. Solar-Fabrik AG is headquartered in Freiburg, Germany, where the company's two factories turn solar cells into top-quality solar modules. Solar-Fabrik customers include solar energy specialists and general importers throughout Europe. Module production is ISO-certified and runs entirely on renewable energy, in what is Europe's first CO2-neutral zero emissions manufacturing facility for solar modules. Solar-Fabrik also provides customers with system solutions based on carefully matched high-quality components. GEWD is a silicon wafer trading house based in Kuala Lumpur (Malaysia) and is wholly owned by Solar-Fabrik AG. GEWD buys recyclable wafers from the semiconductor industry, opening up a new source of raw material previously unavailable to the solar power sector. Based in Chennai (India), Poseidon Solar-Services specializes in recovering recyclable wafers. Solar-Fabrik uses wafers recovered by Poseidon to manufacture high-quality solar cells. Singapore-based solar cell manufacturer SEP turns raw wafers recovered by Poseidon into high-quality solar cells. Solar-Fabrik AG holds a one-third stake in SEP.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku and Solar-Fabrik's beliefs and expectations that the definitive agreement will ultimately be signed, and if it is signed, that it would generate approximately $175 million in revenue for Hoku; Hoku's ability to establish polysilicon production facilities and manufacture polysilicon, to manufacture polysilicon of sufficient quality; Hoku's future financial performance; Hoku'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'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's filings with the Securities and Exchange Commission. Except as required by law, Hoku 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 Materials and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., all rights reserved.

Contact Information

  • CONTACTS For Hoku Scientific:
    Tel: 808-682-7800
    Email Contact

    CONTACTS For Solar-Fabrik AG:
    Martin Schlenk
    Investor Relations Manager
    E-Mail: Email Contact
    Tel.: +49-761-4000-207
    Fax: +49-761-4000-199

    Andrea Ocker
    Public Relations Manager
    E-Mail: Email Contact
    Tel.: +49-761-4000-130
    Fax: +49-761-4000-199