Hoku (HOKU) And JH Kelly Confirm Schedule For Polysilicon Plant Start-Up Operation

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09:53:03 am on April 3, 2009

Hoku Materials, Inc just announced that it has entered into a change order agreement with JH Kelly regarding the construction and start-up of Hoku’s polysilicon plant. The change order redistributes the potential bonus awards due JH Kelly for meeting Hoku’s schedule goals. Previously, Hoku had offered JH Kelly the chance to earn up to $5 million in bonus payments for meeting goals related to completions dates, budget and safety goals, but only $1.5 million of the $5 million was to awarded for meeting scheduling goals. Now, Hoku has redistributed the potential bonus awards so that $3.5 million will be based on scheduling goals.

Dustin Shindo, chairman and CEO of Hoku Scientific, commented on the change:

“The revised milestone schedule realigns JH Kelly’s incentives with our current schedule, which is to start-up the plant and commence shipments to our customers in the second half of calendar year 2009, which may be before our TCS plant is operational. This is consistent with the recently announced change to our engineering and procurement agreement with Stone & Webster, Inc. As unexpected changes in the timing and amount of payments from our customers have required us to shift our schedule to manage cash, JH Kelly has proven to be a trusted and reliable partner.”

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