REC ASA - Secures NOK 5 billion in silane sales...

Sandvika, July 18, 2008: To support the increasing demand for  silane
gas from the electronic and solar industries, REC has entered into  a
number  of  significant  long-term  agreements  for  the  supply   of
monosilane gas to major gas  distributors. Under the agreements,  REC
will through 2014 deliver  gas worth close to  USD 1 billion (~NOK  5
billion).

REC Silicon, the  world's largest producer  and seller of  monosilane
gas, has signed a  number of new  long-term agreements with  existing
customers (major gas distributors) for  the supply of monosilane  gas
(SiH4).

The agreements, most  of which  run through 2014,  are structured  as
take-or-pay contracts with pre-determined prices and volumes for  the
entire contract period.  The contracts have  an approximate value  of
USD 1 billion (~NOK 5  billion). Additional volumes are  contemplated
under the agreements and may be accessed by the customers within  the
contracts framework.

After these agreements have been entered into, substantially all  the
silane capacity that REC intends  to allocate to the merchant  market
is contracted  through 2009.  Additional volumes  could be  allocated
from 2010 dependant on the  development of end-user markets. For  the
period 2010-2014, these agreements constitute around 35-50%  contract
coverage compared to  anticipated potential volume  allocation -  REC
will seek to  increase this percentage  by further implementation  of
the long  term  take-or-pay contract  strategy.  In addition  to  the
silane contract coverage, more than 90% of REC's polysilicon revenues
through 2013 are already under contract through REC's own value chain
and with external customers.

"By contracting for  these volumes, REC  gains further visibility  on
future revenues  and  earnings and  will  continue to  safely  supply
monosilane  gas  to  the  rapidly  growing  solar  and  semiconductor
markets", says Erik Thorsen, President & CEO.

Deliveries have already begun and  the average sales price under  the
new  contracts  is  around  15%  higher  than  the  current   average
monosilane gas  sale price.  The  contracts further  outline  smaller
annual price adjustments based on actual cost developments as well as
include the security of bank  guarantees covering a significant  part
of the contract volumes.

"REC has 25 years experience in safe manufacture, trans-filling,  and
distribution of  this ubiquitous  molecule  that provides  the  vital
silicon material present in thin film solar panels, crystalline solar
cells, computers,  displays,  etc.  and REC  targets  to  maintain  a
leading position in this market", says Goran Bye EVP of REC Silicon.


About REC
REC is uniquely positioned as one of the most integrated companies in
the solar energy industry. REC Silicon and REC Wafer are the  world's
largest producers of polysilicon  and wafers for solar  applications.
REC Solar  produces  solar cells  and  solar modules  and  engage  in
project development activities in selected segments of the PV market.
REC Group had revenues in 2007 of NOK 6,642 million and an  operating
profit of NOK 2,588 million. Please also see www.recgroup.com


For further information please contact:
Erik Thorsen, President & CEO; [phone]
Jon André Løkke, SVP & Investor Relations Officer; [phone]