Message #16 From:
NewsBot Date: February 3, 2008 08:38:40 AM
Hoku Scientific Announces 3-Year Extension on SANYO Electric Polysilicon Supply Contract
SANYO to Pay Hoku Up to Approximately $530 Million Over 10 Years
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 that
it has amended its polysilicon supply contract with SANYO Electric Co.,
Ltd. to increase the term of the contract from seven to ten years. Total
amounts that may be payable to Hoku Materials under the contract have
increased from up to approximately $371 million for the seven year
contract, to up to approximately $530 million for the amended ten year
contract. Hoku Materials and SANYO also agreed to extend to May 31, 2008
the date on which either party may terminate the supply agreement if Hoku
Materials is unable to complete the financing for its polysilicon
production plant. The amendment also extends the dates when SANYO may
terminate the agreement if Hoku Materials is unable to complete the various
polysilicon production, testing, process implementation, and shipment
milestones. In addition, under the amended contract, Hoku Materials will
start shipments to SANYO by the beginning of 2010; however, the agreement
provides that Hoku Materials may ship product to SANYO in 2009.
"Our continuing commitment of capital to the design and engineering of our
plant, and to the purchase of long lead-time items such as the reactors,
has enabled us to stay on schedule for first commercial product deliveries
in the first half of 2009," said Dustin Shindo, Chief Executive Officer of
Hoku Scientific. "This Amendment provides us with added cushion in our
construction and ramp up schedule, which improves the certainty and
progress of the overall project. We remain very pleased with the strength
of our relationship with SANYO, as evidenced by SANYO's extension of the
contract from seven to ten years."
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 to establish polysilicon
manufacturing facilities; its 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.
