REC ASA - Invests NOK 13 billion in Singapore

Sandvika, June 17, 2008: Renewable  Energy Corporation ASA (REC)  has
decided to invest close to  NOK 13 billion in  the first phase of  an
integrated manufacturing complex for production of wafers, cells  and
modules in Singapore. The investment is funded through debt financing
and own cash flow.  Production is expected to  commence in the  first
quarter 2010, and reach full capacity of 740 MW of wafers, 550 MW  of
cells and  590 MW  of modules  before 2012.  The annual  consolidated
revenues from these volumes are expected  to be NOK 10-11 billion  in
2012.

The investment decision covers the first (Phase I) of several planned
development phases.

"This investment supports  REC's position  as a  leading provider  of
highly competitive solar energy solutions, and in achieving our  main
corporate goals of reducing costs and securing profitable growth. The
project cost  levels  should  enable  us  to  compete  profitably  at
grid-parity prices in several markets, which is essential in building
a robust business case",  says Erik Thorsen, President  & CEO of  REC
ASA

The company has carried out extensive value engineering over the past
nine months, which has significantly reduced the capital  expenditure
for Phase I as well as secured the interdependency towards subsequent
development. The investment decision for  the next phase is  expected
in 2009.

"Our entry into Singapore ensures continued revenue growth beyond the
significant growth to come from  all the ongoing capacity  expansions
across all REC's  business activities. Based  on this expansion,  REC
should be producing ~2,400 MW of wafers, ~780 MW of cells and ~740 MW
of modules in 2012, and this  will secure a significant presence  for
REC in key solar markets," says Thorsen.

The solar plant will be based on multicrystalline technology, and the
integrated business model secures volume off-take and margins as well
as an in-house base for  product development across the value  chain.
REC has already  secured supply  of polysilicon  through its  ongoing
expansion in Moses Lake and Butte, and other necessary raw  materials
to facilitate the expected production levels.

The estimated capital expenditure of  close to NOK 13 billion  allows
for contingencies  and cost  escalation due  to inflation,  and  also
includes a yet unallocated project reserve.

The investment  will  be  funded  through  operating  cash  flow  and
existing and new credit  facilities. REC has signed  a mandate for  a
fully underwritten  facility  from  ABN AMRO,  BNP  Paribas,  DnBNOR,
Nordea and SEB covering new loans and guarantees of NOK 10 billion at
market terms.

Over the past year, REC has allocated 75 man-years to pre-engineering
activities, which has  resulted in significant  improvements both  in
terms of flexibility and costs. A more compressed site optimizes land
utilization  and  reduces  pipe  racks  and  distances  between   the
factories, and this has in  turn reduced the capital expenditure  and
the  interdependency  of  the  development  phases.  Agreements  have
already been reached for all construction permits.

REC has  now assigned  approximately 40  employees to  work with  the
Singapore-project in  Norway and  on-site in  Singapore, and  expects
that this  number will  increase significantly  during the  next  few
months. An on-site office was established in April.

REC has  also  signed  Letters  of  Intent  with  all  EPCM-partners,
including costs and  schedules as well  as incentive structures.  The
investment  decision   today   also  triggers   agreements   securing
procurement for the  bulk of  (90 percent)  equipment supplies  where
cost and  delivery schedules  are  determined. REC  will  immediately
commence detailed engineering and early construction and piling, with
the target of commencing ramp-up of production early 2010.


Please find more information about the project below, or contact;
Erik Thorsen, President & CEO; [phone]
Jon Andre Løkke, SVP & IRO; [phone]


About REC
REC is uniquely positioned as one  of the most integrated company  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

Additional information
REC's  existing  manufacturing  sites  for  wafer,  cell  and  module
production are rapidly reaching full utilization as ongoing expansion
plans are  being executed.  As a  consequence, REC  in late  in  2006
initiated a project  to develop  new production  concepts across  the
wafer/cell/module value chain. Early 2007 the initiative was followed
by a  thorough  site selection  project,  which culminated  with  the
decision to locate the new  integrated solar complex in Singapore  in
October 2007.

The integrated solar complex - phase I
The selected  1  km2  green  field site  is  located  in  Tuas  View,
approximately 30 minutes from the city centre in the western part  of
Singapore. REC holds a 30 year lease of the land from the  land-owner
Jurong Town Corporation.  In the  first phase, REC  will utilize  the
North-Western area of the site.

Wafers
The planned wafer capacity  is estimated at  approximately 740 MW  in
the first development  phase, to  be produced from  two wafer  plants
which are modeled  on the  plants REC currently  are constructing  at
Herøya in Norway. The first of the plants is expected to be ramped-up
from early 2010, with the second  plant following later in the  year.
Manning at  the  wafer  plants  in Singapore  is  expected  to  reach
approximately 360 people (Phase I), of which 320 in production and 40
in other functions. The wafer net conversion cost is estimated to  be
approximately 10  percent lower  than  at the  best REC  Wafer  plant
outside Singapore.

Cells
The planned cell capacity is  estimated at approximately 550 MW  from
eight production lines in the first development phase. The production
lines will be based  on further development  of the production  lines
currently under  ramp-up in  Narvik.  Manning at  the cell  plant  in
Singapore is expected to reach approximately 280 people (Phase I), of
which  230  in  production  and  50  in  other  functions.  The  cell
conversion cost  for  the plants  in  Singapore is  estimated  to  be
approximately 45 percent lower than current industry average.

Modules
The planned module capacity is estimated at approximately 590 MW from
four production lines in the first development phase. The  production
lines will be based  on further development  of the production  lines
currently under ramp-up  in Glava  in Sweden. Manning  at the  module
plant in  Singapore is  expected to  reach approximately  470  people
(Phase I), of which 420 in production and 50 in other functions.  The
module conversion cost for the plants in Singapore is estimated to be
approximately 35 percent lower than current industry average.