POCATELLO, ID and QIDONG, CHINA -- (Marketwire) -- 03/31/09 -- Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Solarfun Power Hong Kong Limited, a subsidiary of Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF), an established vertically integrated manufacturer of silicon ingots and wafers, and photovoltaic (PV) cells and modules in China, today announced that they have amended their polysilicon supply contract to modify the timing of when Solarfun is obligated to pay Hoku $23 million in additional prepayments for polysilicon, while adjusting Hoku's deadlines for commencing shipments to Solarfun. Pricing, volume, and other material terms of the agreement were unchanged.

Solarfun had already paid Hoku $32 million in prepayments through October 2008. Before the amendment, Solarfun was obligated to pay Hoku $18 million by March 31, 2009, and an additional $5 million by March 31, 2010, as a prepayment for polysilicon products. The amendment provides that the $18 million may be paid in installments, including $5 million that was paid on March 30, 2009, $8 million to be paid in July 2009, and $5 million to be paid in increments of $1 million in August and September 2009, and $3 million in October 2009. The $5 million that was payable on March 31, 2010, is now payable in January 2010. In exchange for Hoku's agreement to adjust the prepayment timing, Solarfun has agreed to extend the date when Hoku is obligated to commence shipments of polysilicon from September 2009 until March 2010. Solarfun has the right to terminate the amended supply agreement if Hoku has not commenced shipments by June 30, 2010, and Hoku has the right to terminate the agreement, and retain all prepayments received, if Solarfun fails to pay any of its future prepayments when due.

"Solarfun is an important relationship," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "We were willing to renegotiate the timing of their near-term prepayments to ensure our mutual long-term success. We still plan to commence customer shipments in the second half of 2009; however, delays in customer payments can impact our plant construction schedule, and we appreciate their flexibility in moving our required delivery dates."

"We value Hoku's long-term partnership and appreciate their willingness to renegotiate our existing contract to reflect current prevailing market conditions," said Solarfun's chief executive officer, Harold Hoskens.

About Hoku Scientific, Inc.

Hoku Scientific (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells.