REC ASA - Quebec chosen for future silicon expa...

Sandvika, August 25, 2008: Renewable Energy Corporation ASA (REC) is
pleased to announce Bécancour, Quebec as the site of choice for the
next phase of silicon materials expansions. The site will be
developed in stages and could potentially hold four production units
similar in size of the factory currently under completion in Moses
Lake, Washington, USA.

REC has today decided to establish its next silicon materials
manufacturing expansion in Bécancour, Canada and has simultaneously
signed agreements with Hydro Quebec, and Société du Parc industriel
et portuaire de Bécancour.  The agreements outline both the terms and
conditions related to the development of a new production site and
other commercial conditions.

"The development of this site will enable us to continue expansion of
our silicon business in the most cost efficient manner and will
consequently support REC's further growth downstream as well as our
ambitious long-term cost target", says Erik Thorsen, President & CEO
of REC.

The decision on Bécancour was made after a comprehensive 17 months'
process involving screening of more than 100 possible locations in 16
countries, followed by due diligence of close to 40 of them and
finally negotiations with a few sites.

As the production of polysilicon is relatively energy intensive, one
important reason for selecting Bécancour has been access to stable
electricity supply based on long-term, predictable pricing.
Additionally, REC is committed to limit the environmental impact of
producing solar cells and panels, and therefore prefers electricity
supply based on (non-carbon based) renewable energy sources.

As part of the arrangement with the Government of Quebec, REC will
have a long term power contract with Hydro Quebec at a competitive
industrial rate. The 20 year power contract will provide REC with
long-term, clean, renewable power at a predictable cost in addition
to other benefits offered by the world-class Société du Parc
industriel et portuaire de Bécancour (SPIB). The agreement further
assumes that total investments at the SPIB will exceed USD 1.2
billion and that the total number of employees will exceed 300
people.

REC intends to build future production capacities leveraging its
latest technology including more advanced versions of the low cost,
proprietary polycrystalline silicon deposition process based on
fluidized bed reactors. Pre-engineering for the new plant will be
concluded within the next six months, after which the decision on the
definite size of the investment will be made. Current plans call for
the site to be developed in several stages with total potential of
four production units similar in size of the factory currently under
completion in Moses Lake, Washington, USA. Total capacity will be
brought on line in accordance with customer agreements and market
conditions. Construction is anticipated to start in 2010 with Phase I
production capacity available in 2012.

"We are pleased to select Bécancour as the preferred site for future
silicon materials expansions. We look forward to a long and
industrious relationship between REC and the people of Quebec. During
the site selection and negotiation process, the Government of Quebec,
particularly Investissement Quebec, has proven to be welcoming and
encouraging. We also see great potential in the workforce and
complimentary industries in the area", says EVP Silicon, Gøran Bye.

In connection with this decision, the Premier of Quebec, Jean
Charest, and REC will together host a press conference in connection
with the announcement "Quebec chosen for future silicon expansions".
The press conference will partly be held in French and English.

The event takes place at 20:00 hrs Norwegian time/CET at the Société
du Parc industriel et portuaire de Bécancour, 1000, boul.
Arthur-Sicard, Salle 101, Bécancour, Quebec, Canada.

Further, it will be possible to listen to the press conference and
participate in a question and answer session through a conference
call. Please use one of the following numbers (conference ID,
7996421) and make sure to dial in at least 5 minutes ahead of time to
finalize your registration:

USA and Canada free call: 1-866-753-3210
International dial in: 1-514-392-3209

For more information, please contact;
Erik Thorsen, President & CEO; [phone]
Jon Andre Løkke, SVP & IRO; [phone]


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.