REC ASA - Secures a NOK 3 billion wafer sales contract

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The agreement, which runs until 2015, is structured as a take-and-paycontract with pre-determined prices and volumes for the entirecontract period.

The contract has an approximate value of more thanUSD 600 million (~NOK 3 billion). "The significant level of planned and ongoing capacity expansionsgives us additional opportunities to secure new long term salescontracts that provide further visibility on future revenues andearnings. This agreement will also enable us to broaden our customerand market base even more", says Erik Thorsen, President & CEO.

The deliveries will start with limited volumes in 2nd half of 2009and increase over the contract period. Prices and other commercialterms are in line with contracts signed since 2006 and include thesecurity of a bank guarantee covering a significant part of thecontract volume. Prices are predetermined to go down over time andwill be depending on customer's ability to reduce wafer thickness. Contracts signed since 2006 now totals close to NOK 30 billion forthe period 2007-2015. "Including this latest contract, more than 80 percent of REC Wafers2010 production volume has been sold. This is in line with ourstrategy of securing long-term off-take agreements with leading solarcell producers, and we are proud to include Gintech in our customerportfolio", says Ingelise Arntsen EVP of REC Wafer.

REC is listed on the RENIXX World Index (Renewable Energy Industrial Index)

Source: IWR Online, 12 Jun 2008