Hoku Signs Engineering, Procurement, and Construction Management Contract for Polysilicon Plant

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 awarded a contract to Stone & Webster, Inc., a subsidiary of The Shaw Group Inc. (NYSE: SGR), to perform engineering, procurement and construction management (EPCM) services for Hoku Materials' planned 2,000 metric ton per year polysilicon manufacturing plant in Pocatello, Idaho. The contract is a time and materials contract with additional incentives if certain construction schedule milestones and cost targets are met. The total installed cost target of the project is $260 million and the schedule calls for the first reactors to be operational in the second half of 2008, mechanical completion by January 31, 2009, and final completion by May 31, 2009.

"Signing an EPCM contract was an important component in order to construct our polysilicon plant and a necessary step for debt financing. We are pleased to have partnered with Shaw, a company with strong experience and a demonstrated record of delivering fast-track projects," noted Dustin Shindo, chairman of the board of directors, president and CEO of Hoku Scientific. "We look forward to a long and collaborative relationship."

"We are impressed with the progress that Hoku has already made and look forward to contributing to their efforts and success," said Lou Pucher, president of Shaw's Energy & Chemical Group.

The EPCM contract is for the construction of a polysilicon facility with an annual capacity of 2,000 metric tons; however the Company's plan to produce between 2,000 and 3,000 metric tons per year has not changed. The Company is designing and building a facility that will be oversized in certain areas, to allow up to an additional 1,000 metric tons of polysilicon per year. The Company is working with current and potential customers and vendors and its financial advisor to determine the ideal capacity while still meeting its polysilicon contract delivery schedule.

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 is marketing and plans to install 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.

About The Shaw Group Inc.

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure, and emergency response markets. A Fortune 500 company with nearly $5 billion in annual revenues, Shaw is headquartered in Baton Rouge, Louisiana and employs approximately 25,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. For further information, please visit Shaw's website at www.shawgrp.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to the Company's ability to successfully raise sufficient funds to establish a polysilicon manufacturing plant; its ability to engineer and construct a production plant for polysilicon; the schedule to complete the construction of its polysilicon manufacturing plant and the related cost of construction; the Company's ability to manufacture polysilicon; its ability to meet its delivery schedule in its agreements with its contracting parties; the quality of polysilicon to be manufactured; the Company's costs to manufacture polysilicon; the Company's future financial performance; its 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 Materials, Hoku Solar and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., all rights reserved.