Hoku Scientific Inks Agreement With Global Expertise

POCATELLO, ID--(Marketwire - March 5, 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 Global Expertise Wafer Division, a wholly owned subsidiary of Solar-Fabrik AG (XETRA: SFXG), a vertically integrated solar power company in Freiburg, Germany, to extend the date for Hoku to complete the financing for its planned polysilicon plant. Under the terms of the amendment, Hoku or Global Expertise Wafer Division may terminate the supply agreement if Hoku has not secured financing for its polysilicon plant by May 31, 2008, which is a two-month extension from the previous deadline of March 31, 2008. This is the only amendment to the supply agreement, and the extended deadline is consistent with the financing deadlines in Hoku's contracts with SANYO Electric Co., Ltd., and Suntech Power Holdings Co., Ltd.

"We recently completed our $25 million private placement, and we continue to work with Merrill Lynch on their due diligence to lend us the additional capital we need to finance the construction of our polysilicon facility in Pocatello, Idaho," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "Extending the financing deadlines in our customer contracts reduces some of the time pressure to complete the financing. We appreciate the continuing support from Global Expertise Wafer Division of our planned polysilicon business."

In December, 2007, 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. The term sheet expires on May 31, 2008. In February, Hoku Scientific completed the private placement of approximately $25 million of its common stock to institutional investors and a subsidiary of Suntech Power Holdings Co., Ltd.