Hoku Materials Granted Foreign Trade Zone Status by U.S. Commerce Department

POCATELLO, ID, Aug 17 (MARKET WIRE) --
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc.
(NASDAQ: HOKU) established to manufacture and sell polysilicon for the
solar market, today announced it had been granted foreign-trade zone
(FTZ) subzone status by the United States Department of Commerce for its
polysilicon manufacturing plant currently under development in Pocatello,
Idaho.

Hoku reported that it expected the subzone status would contribute to the
facility's long-term global competitiveness, explaining that FTZ
procedures would exempt the Company from customs duty payments on foreign
materials used in export production.

Specifically, the ruling will allow Hoku to import foreign-sourced raw
materials in a duty-free status, provided they are destined for export
overseas as components of finished polysilicon. Under its existing
customer supply agreements, more than 80% of Hoku's total annual
production capacity of polysilicon, and 100% of what has been presold to
date, is destined for export to China, meaning that an equivalent
percentage of the Company's raw material inputs would be eligible for
import in a duty-free status.

Hoku explained that it had been granted subzone status under the existing
Foreign Trade Zone established for Boundary County in Northern Idaho, the
only FTZ in the state. Hoku Materials' facility will be the only
designated Foreign Trade Subzone in Idaho.

"We are pleased to have been granted the Foreign Trade Subzone status,"
said Dustin Shindo, chairman and chief executive officer of Hoku
Scientific. "This ruling helps ensure that our facility will remain
globally competitive over time."

"For many reasons, Hoku is a unique case study in today's economy," said
Gynii Gilliam, Executive Director of the Bannock Development Corporation.
"Hoku's Pocatello plant will not only be a net exporter to China, but
thanks to the Commerce Department's ruling, it will have the ability to
compete internationally on a level playing field. This outcome is not only
good for Idaho's emerging clean energy manufacturing base, but it is good
for the U.S. renewable energy industry in general."

When complete, the Hoku Materials facility is expected to produce up to
4,000 metric tons of polysilicon per year.

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. Hoku Materials plans to manufacture, market, and sell
polysilicon for the solar market from its plant currently under
construction in Pocatello, Idaho. Hoku Solar markets, sells, and installs
turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed
proprietary fuel cell membranes and membrane electrode assemblies for
stationary and automotive proton exchange membrane fuel cells. For more
information visit www.hokucorp.com.

Hoku(R), Hoku Scientific(R), Hoku Solar(TM) and Hoku Fuel Cells(TM) are
trademarks of Hoku Scientific, Inc., and Hoku Materials(TM) is a trademark
of Hoku Materials, Inc.

Forward-Looking Statements

This press release contains forward-looking statements that involve many
risks and uncertainties. These statements relate to the engineering,
procurement, and construction of Hoku Materials's planned polysilicon
production plant; Hoku Materials's ability to successfully derive revenues
from the sale of polysilicon; the ability of Hoku Materials to engineer
and construct a production plant for polysilicon; its ability to produce
up to 4,000 metric tons of polysilicon per year, or at all; its ability to
operate an internationally competitive polysilicon production business;
its ability to import foreign-sourced raw materials used in polysilicon
production and to export the finished polysilicon overseas; its ability to
be a net exporter to China; its ability to receive payment on presold
polysilicon under existing polysilicon supply contracts and to perform
under such contracts; Hoku Scientific's future financial performance; its
business strategies and plans; and objectives of management for future
operations. In some cases, you can identify forward-looking statements by
terms such as "anticipate," "believe," "can," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "potential," "predict,"
"project," "should," "will," "would" and similar expressions intended to
identify forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause Hoku
Scientific's actual results, performance, time frames or achievements to
be materially different from any future results, performance, time frames
or achievements expressed or implied by the forward-looking statements.
Given these risks, uncertainties and other factors, you should not place
undue reliance on these forward-looking statements. In evaluating these
statements, you should specifically consider the risks described in Hoku
Scientific's respective filings with the Securities and Exchange
Commission, as applicable. Except as required by law, Hoku Scientific
assumes no obligation to update these forward-looking statements publicly,
or to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information
becomes available in the future.

For more information contact:

Hoku Scientific, Inc.
1288 Ala Moana Blvd., Ste. 220
Honolulu, Hawaii, 96814, USA
Tel: +1-808-682-7800
Fax: +1-808-440-0357
Email: Email Contact
www.hokucorp.com

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