Hoku Secures Key Materials for Polysilicon Production

Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc.established to manufacture and sell polysilicon for the solar market, announced the signing of an HCl supply agreement with BHS Acquisitions, LLC, a wholly owned subsidiary of BHS Marketing, Inc., and a leading chemical supplier with bulk liquid transloading facilities in Nampa, Idaho, that are serviced by Union Pacific Railroad. BHS’s customers include Alcoa and Rio Tanta (Alcan).

HCl and metallurgical grade silicon are the two primary starting materials for the manufacture of trichlorosilane, which is the key raw material for the production of solar grade polysilicon using the Siemens process. The supply contract with BHS, coupled with the metallurgical grade silicon contract with Polymet, mean that Hoku has now secured enough key starting material to operate the plant into 2010.

According to the terms of the agreement, BHS will supply Hoku with guaranteed amounts of HCl for eight years beginning in 2009. The guaranteed annual amount of HCl is expected to be enough to support the continuous operation of Hoku’s trichlorosilane plant, which would enable the production of approximately 4,000 metric tons of polysilicon per year.

“We are pleased to be working with BHS,” said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. “Their operations in Idaho can receive and store liquid chemicals from railroad shipments, which will improve our overall supply chain logistics. In addition to being the ideal supplier of HCl for Hoku, we are pleased that we could find a supplier based in the State of Idaho so that we may further support the local economy.”

“BHS is excited to partner with Hoku as their long-term HCl supplier,” said Michael Merlo, Vice President of BHS Marketing, Inc. “As a long-time supplier of industrial chemicals in the Pacific Northwest, our growth into the solar sector is a natural fit for us. Hoku is a leading company in this area, and we look forward to working with them.”

About Hoku Scientific, Inc.

Hoku Scientific, Inc. 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 is a provider of 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.hokucorp.com