Solar-Fabrik and Hoku Scientific Announce Polysilicon Supply MOUIntention for a definitive agreement within 60 days
Freiburg, Germany and Kapolei, Hawaii – December 5, 2006 – Hoku Materials, a business unit of Hoku Scientific, Inc. (NASDAQ: HOKU) that is planning to manufacture and sell polysilicon, and Solar-Fabrik AG (SFXG.DE) today announced that they have signed a non-binding Memorandum of Understanding (“MOU”) for the supply of solar grade polysilicon.
Under the terms outlined in the MOU, Hoku would supply polysilicon chunks to Solar-Fabrik over a fixed number of years at pre-determined pricing on a non-cancelable order. As currently contemplated in the MOU, sales of polysilicon are expected to generate between $120 and $140 million in revenue for Hoku over a several-year period commencing in approximately two years. Hoku intends to manufacture the polysilicon chunks at a new facility it is planning in Idaho. Hoku expects to commence construction of its Idaho facility in the first half of calendar year 2007, subject to available financing and other conditions, and complete construction in late 2008.
“Solar-Fabrik has quickly emerged as a strong player in the global module market, and its upstream integration strategy makes them an ideal partner for us,” said Dustin Shindo, Chairman and CEO of Hoku Scientific. “We are very impressed with their business strategy and believe that they are well positioned to be a leader in this growing industry.”
“We’re pleased to pursue this polysilicon supply relationship with Hoku Materials,” said Georg Salvamoser, CEO of Solar-Fabrik. “We have evaluated a number of polysilicon supply opportunities in the market, and are confident in Hoku’s ability to deliver.”
The MOU reflects the parties’ intent to conclude a definitive agreement within 60 days; however, Hoku and Solar-Fabrik cannot assure that a definitive agreement will be concluded within this time frame, or at all. Execution of the definitive agreement is contingent on agreement on all material terms and other customary closing conditions for transactions of this nature.
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 planning to expand its business to manufacture solar modules and polysilicon for the solar and integrated circuit markets. 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.
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 would generate between $120 and $140 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.
CONTACTS For Hoku Scientific:
CONTACTS For Solar-Fabrik AG:
Public Relations Manager
Tel.: +49-761-4000-130, Fax: +49-761-4000-197
Head of IR/Controlling
Tel.: +49-761-4000-207 , Fax: +49-761-4000-199