POCATELLO, ID--(MARKET WIRE)--Mar 23, 2007 -- Hoku Materials, Inc., a division of Hoku Scientific, Inc. (NasdaqGM:HOKU - News) established to manufacture and sell polysilicon for the solar market, today announced that it has entered into a 99-year ground lease with the City of Pocatello, Idaho, for approximately 67 acres of land in Pocatello, Idaho. Hoku plans to construct a polysilicon production plant at this location that is capable of producing up to 2,000 metric tons of polysilicon per year. The annual rent for the ground lease is fixed at one dollar per year until the expiration of the lease on December 31, 2106. In addition to this 67-acre lease, Hoku and the City of Pocatello have signed a separate agreement granting Hoku an option to lease an additional 450 acres of land owned by the City of Pocatello, which Hoku may use for future expansion. The terms of any future lease will be subject to good faith negotiations between Hoku and the City of Pocatello.

"The land we are leasing in Pocatello is more than enough space to accommodate our planned 2,000 metric ton polysilicon plant, and is conveniently located adjacent to major interstate highways and railroads," said Dustin Shindo, Chairman and CEO of Hoku Scientific. "We look forward to breaking ground in the next several weeks."

"We were pleased to offer Hoku this location for its polysilicon plant," said Roger Chase, Mayor of the City of Pocatello. "Hoku is bringing an entirely new industry to Pocatello, and we are pleased to support their efforts. This is a great opportunity for our community."