Sandvika, June 5, 2012: Renewable Energy Corporation ASA (REC) has agreed to terminate a long-term wafer sales contract and has received USD 35 million cash compensation.
In the period 2006 - 2008, REC entered into a number of long term take-or pay wafer sales contracts and most of the contracts were supported by bank guarantees. REC has now accepted to terminate one of these contracts and has received a cash compensation of approximately USD 35 million.
Income from this cancellation will be recognized in the second quarter 2012.
For further information, please contact:
Mikkel Tørud, VP & IRO, phone: +47 976 99 144
REC is a leading vertically integrated solar energy company. REC produces polysilicon, wafers, cells and modules for the solar industry, and silicon materials for the electronic industry. REC also engages in project development in selected PV segments. Founded in Norway in 1996, REC employs around 3,200 people globally with revenues of more than EUR 1.7 billion in 2011, approximately USD 2.4 billion. 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)