REC ASA - Secures a NOK 2.9 billion silicon pow...

Sandvika,  October  20,  2008.  REC  has  entered  into  a  long-term
take-or-pay agreement for the supply of fine particulate silicon - or
"silicon powder" - from the FBR-process. The contract has a value  in
excess of USD 500 million (~NOK 2.9 billion).

REC has  entered  into  a  long-term  take-or-pay  agreement  with  a
PV-company based in Asia for  the supply of fine particulate  silicon
from the FBR-process, so-called "silicon powder". Silicon powder  has
traditionally  had  low  or  negative  value,  due  to  storage   and
land-filling requirements. REC  has developed  technology to  capture
and package  these  fine  silicon  materials,  which  opens  valuable
commercial opportunities.

"This will enable  us to  increase the revenue  and consequently  the
financial return on  our latest polysilicon  expansions, through  the
marketing of a product that REC presently does not intent to  utilize
internally", says Erik Thorsen, President & CEO of REC.

The contract  has a  value in  excess of  USD 500  million (~NOK  2.9
billion), and runs for seven years from 2009 through 2015. Prices and
volumes are predetermined for  the entire contract period,  including
clauses covering  annual  price  adjustments  in  the  case  of  cost
escalations. Volumes delivered will start  at a relatively low  level
and increase over time to approximately 1,500 MT per year.  According
to the agreement, REC Silicon will receive a prepayment fee of USD 65
million (~NOK 380  million) before  the end of  2008. These  "silicon
powder"- volumes come in addition to already communicated volumes  of
prime material (i.e. FBR and Siemens prime).

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.


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