euro adhoc: Solar-Fabrik AG / Strategic management decisions / Hoku Scientific and Solar-Fabrik Subsidiaries Sign Polysilicon Supply Agreement

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Contracts

20.06.2007

Freiburg, Germany - June 20, 2007 - Global Expertise Wafer Division,
a subsidiary of Solar-Fabrik AG (SFXG.DE), a vertically integrated
solar power company, and 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 the signing of a definitive contract for Hoku Materials´
sale and delivery of polysilicon to Global Expertise Wafer Division
over a seven-year period beginning in the second half of calendar
year 2009. Under the contract, up to approximately $185 million may
be payable to Hoku Materials during the seven-year period, subject to
the achievement of certain polysilicon production and quality
milestones, the acceptance of product deliveries and other
conditions. The contract provides for the delivery of predetermined
volumes of polysilicon each year at set prices beginning with the
first shipment in the second half of 2009 and continuing over a
seven-year period from the first shipment. The contract also
provides for an initial direct deposit of $2 million to Hoku
Materials upon signing and, subject to Hoku Materials´ successful
achievement of production and quality milestones and other
considerations, requires that Global Expertise Wafer Division make
additional prepayments prior to the first shipment in the amount of
$51 million.

"We are pleased to have signed this agreement with Global Expertise
Wafer Division, and look forward to supporting the long-term growth
and success of the Solar-Fabrik family of companies," said Dustin
Shindo, Chief Executive Officer of Hoku Scientific. "Solar-Fabrik´s
integration strategy and business model make them an ideal partner
for Hoku Materials."

"Securing this supply of polysilicon from Hoku Materials through 2016
will enable us to execute on our global expansion strategy," said
Christoph Paradeis, Chief Executive Officer of Solar-Fabrik. "Hoku
Materials´ consistent progress over the past several months gives us
confidence that they can execute on their polysilicon plan, and we
look forward to building an enduring relationship with them."

Under the agreement, Global Expertise Wafer Division´s prepayment
obligation is to be backed by one or more letters of credit, and is
to be paid to Hoku Materials in installments, subject to Hoku
Materials´ successful achievement of certain polysilicon production
and quality milestones and other conditions prior to the first
shipment in 2009. If Hoku Materials is ultimately not successful in
building its planned polysilicon plant, or if Hoku Materials does not
meet certain production and quality milestones or timely deliver
minimum quantities of polysilicon, the agreement provides that the
initial direct deposit will be returned to Global Expertise Wafer
Division, the letters of credit may be cancelled and the agreement
may be terminated by Global Expertise Wafer Division.

Increasing Plant Capacity

In 2006, Hoku Materials announced its plan to build a plant capable
of producing 1,500 metric tons of polysilicon per year. Later in
2006, Hoku Materials announced that it had increased the plant design
to be capable of producing 2,000 metric tons of polysilicon per year.
Today, Hoku Materials announced that it plans to add up to 1,000
metric tons of additional capacity to produce up to 3,000 metric tons
of polysilicon per year. This additional capacity is planned to come
online six to twelve months after the first 2,000 metric tons of
annual capacity are online at the Company´s Pocatello, Idaho plant,
currently under construction.

About Solar-Fabrik AG Global Expertise Wafer Division is a silicon
wafer procurement house based in Kuala Lumpur (Malaysia) and is
wholly owned by Solar-Fabrik AG. Global Expertise Wafer Division buys
recyclable wafers from the semiconductor industry, opening up a new
source of raw material previously unavailable to the solar power
sector. 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
procurement, 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.
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. For more information about Solar-Fabrik Group, please
visit www.solar-fabrik.de.

About Hoku Scientific, Inc. Hoku Scientific (NASDAQ: HOKU) is a clean
energy technologies company that historically developed and
manufactured fuel cell membranes and membrane electrode assemblies
for stationary and automotive proton exchange membrane fuel cells.
The Company is currently focusing its business on the manufacturing
of polysilicon and the installation of solar modules for the solar
market. For more information about Hoku, please 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
derive revenues from the sale of polysilicon to Global Expertise
Wafer Division; its ability to successfully raise sufficient funds to
establish polysilicon manufacturing plant and conduct its proposed
businesses; its ability to engineer and construct a fully operational
production plant for polysilicon; Hoku Materials´ relationships with
Global Expertise Wafer Division; its ability to manufacture high
quality polysilicon; its ability to meet the delivery schedule in its
agreement with Global Expertise Wafer Division; its ability to
license any necessary intellectual property rights to enter the
polysilicon business; Hoku Materials´ costs to manufacture
polysilicon, and its ability to offer pricing that is competitive
with competing products; Hoku Scientific´s and Solar-Fabrik´s
respective future financial performance; Hoku Scientific´s and
Solar-Fabrik´s respective business strategies and plans; and
objectives of each company´s 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.

end of announcement euro adhoc 20.06.2007 22:01:00
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ots Originaltext: Solar-Fabrik AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Martin Schlenk
Tel. +49(0)761 4000 207
E-Mail: m.schlenk@solar-fabrik.de

Branche: Alternative energy
ISIN: DE0006614712
WKN: 661471
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse München / free trade