Hoku Secures Power for 4,000 Metric Tons of Polysilicon Production

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 the signing of an electric service agreement with Idaho Power Company for the purchase of power to support Hoku's planned polysilicon production capacity of 4,000 metric tons per year, and the amendment of a substation construction agreement that would provide the necessary infrastructure to deliver the power.

According to the terms of the electric service agreement, Hoku has secured guaranteed amounts of power capacity at a negotiated blended fixed and industrial tariff rate for four continuous years beginning in June 2009. After this initial four-year term, the price of electricity would revert to the utility's standard tariff rates in effect at that time for large industrial power purchasers. The guaranteed amount of power is expected to be enough to support 4,000 metric tons of polysilicon production per year, after accounting for reductions in the available power during the summer months, when Hoku plans to reduce operations for routine annual maintenance.

The amended substation construction agreement increases the planned substation capacity to 82 MW of continuous load, which is expected to be sufficient for the production of 4,000 metric tons of polysilicon per year. The substation facilities are scheduled to first come online in May 2009, with additional facilities being phased in until final completion in August 2009. This timeline is consistent with Hoku's planned polysilicon production ramp-up schedule. The agreement also provides that Idaho Power will provide temporary power, which would be separately invoiced, to enable Hoku's earlier reactor demonstration and initial start-up and commissioning activities.

"We are pleased to have finalized these agreements," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "The cost of electricity is the largest single component of polysilicon production costs for a Siemens-based process such as Hoku's. The negotiated fixed rates are fair and fit well within our projected financial models for our operations."

Commenting on the amended substation agreement, Shindo said, "Given our increase in planned capacity to 4,000 metric tons per year, it was important to add the additional substation capacity. We wanted to proactively ensure we would have sufficient power to support this level of production. Idaho Power has a strong reputation as a provider of very reliable high quality electricity, which is so critical to our plant operations."

About Hoku Scientific, Inc.

Hoku Scientific, Inc. (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 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.hokuscientific.com

Hoku® and Hoku Scientific® are registered trademarks and Hoku Solar(TM) and Hoku Fuel Cells(TM) are trademarks of Hoku Scientific, Inc. Hoku Materials (TM) is a trademark of Hoku Materials, Inc. All rights reserved.

Safe Harbor Statement

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to Hoku Materials's completion of its polysilicon production facility and its ability to successfully produce polysilicon; Hoku Materials's ability to produce up to 4,000 metric tons of polysilicon annually; Idaho Power's ability to construct the substation and related facilities, and the timing of completion of such facilities; the amount of power that will be sufficient to produce 4,000 metric tons of polysilicon annually; Hoku Materials's cost to purchase electricity, including the electricity rate after the four-year term of its agreement with Idaho Power; Idaho Power's ability to deliver electrical power on time to meet Hoku Materials's planned reactor demonstration, start-up, commissioning, and production ramp-up; 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, as applicable. 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.