Norwegian solar technology company Renewable Energy Corporation ASA to invest USD485m to increase capacity in the US and Norway

Nordic Business Report, April 27, 2007

NORDIC BUSINESS REPORT-27 April 2007-Norwegian solar technology company Renewable Energy Corporation ASA to invest USD485m to increase capacity in the US and Norway(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Norwegian solar technology company Renewable Energy Corporation ASA (REC) announced on Thursday (26 April) plans to invest USD485m to increase its production capacity in the US and Norway.

The US investments include a new 9,000 MT silane gas facility and the ramping up of existing polysilicon capacity by 6,000 MT. In Norway the investments include the increase of wafer production capacity at the Glomfjord plant with an additional 50 MW to 250 MW.

The capacity increases are expected to be completed by 2010, when REC Silicon should have an annual production capacity of approximately 29,000 MT of silane gas and 19,500 MT of polysilicon, and REC Wafer a production capacity of approximately 1,400 MW.

REC published its first quarter report on Friday (27 April), posting an operating profit (EBIT) of NOK737m, as compared to NOK298m in the first quarter of 2006.

Revenues amounted to NOK1,616m, up by 85% from NOK872m in the first quarter last year.

Earnings per share improved from a loss of NOK1.27 to a profit of NOK1.08.

REC, headquartered in Oslo, Norway, is one of the world's largest producers of polysilicons and wafers for solar applications, and also manufactures solar cells and solar modules. The group reported revenues of NOK4,334m in 2006. REC is listed on the Oslo Stock Exchange and traded under the ticker REC.

One British pound (GBP) is worth approximately 2.00 US dollars (USD). One British pound (GBP) is worth approximately 11.95 Norwegian kroner (NOK).

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