Power outage in Moses Lake affecting polysilicon production

Sandvika, October 5, 2011: REC Silicon has experienced a power supply outage with a 100 percent power loss and consequently all of REC Silicon's manufacturing facilities in Moses Lake, Washington, were shut down on the morning of October 4, 2011. No safety incidents occurred during the outage.

Grant County Public Utility District (Grant County PUD), the entity responsible for power supply to the Moses Lake plant, is currently in the process of determining the root cause of the outage, which caused residential and industrial properties in Grant County to be without power for an extended period of time on October 4.

REC Silicon is in the process of restarting production and anticipates that it will take two to three weeks before full production can be resumed at pre-outage levels. As a result of this power outage, the full year 2011 polysilicon production target has been reduced from 19,000 MT to 18,500 MT. The incident is expected to affect FBR quality yield and unit cost in the fourth quarter 2011.

A more comprehensive update on this issue will be provided during the release of the Q3 financial results on October 26, 2011.


For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
Peder Poulsson, Investor Relations Analyst; +47 950 26 311


About REC
REC is a leading vertically integrated player in the solar energy industry. Ranked among the world's largest producers of polysilicon and wafers for solar applications and a rapidly growing manufacturer of solar cells and modules, REC also engages in project development activities in selected PV segments. Founded in Norway in 1996, REC is an international solar company, employing more than 3,900 people worldwide with revenues close to NOK 14 billion in 2010. Please visit www.recgroup.com to learn more about REC.

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)