REC ASA - Moser Baer has no legal right to term...

Sandvika, February 12, 2010: Moser Baer Photo Voltaic Ltd. ("MB") has no legal
right to terminate the wafer contract entered into with REC in 2007. As reported
in the interim report for the fourth quarter 2009, REC has agreed to make
adjustments to sales contracts and in some cases called upon bank guarantees to
protect its interest. In the case of MB, REC called upon the bank guarantee to
cover outstanding receivables already in October 2009, and REC will continue to
enforce its rights under the contract.
REC announced the 8-year contract with MB on July 26, 2007, in which annual
volumes are scheduled to increase over time to a peak at around 60 MW per year.
On February 10, 2010, MB announced that they had terminated the contract, due to
alleged quality issues. For the same reasons, the company tried to prevent REC
from calling upon the bank guarantees. This attempt was denied by an Indian
court although this is subject to appeal. REC has currently USD 36.5 million
worth of receivables outstanding towards MB and the total available bank
guarantees under the contract amounts to USD 85 million.
Legal proceedings will continue, although Moser Baer in REC's opinion has no
legal right to terminate the contract.

About REC
REC is the leading vertically integrated player in the solar energy industry.
REC Silicon and REC Wafer are among the world's largest producers of polysilicon
and wafers for solar applications. REC Solar is a rapidly growing manufacturer
of solar cells and modules, and is also engaging in project development
activities in selected segments of the PV market. REC had revenues of NOK 8 191
million and an operating profit of NOK 2 529 million in 2008. More than 3 000
employees work in REC's worldwide organization. Please visitwww.recgroup.com
<

http://www.recgroup.com> to learn more about REC.

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


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