HONOLULU, HI--(Marketwire - Feb 29, 2012) - Hoku Corporation (NASDAQ: [ HOKU ]), a solar energy products and services company, today announced it had entered into a $10 million credit agreement with the New York branch of China Merchants Bank Co., Ltd. To date, Hoku has borrowed an aggregate of $78 million from China Merchants Bank. The proceeds will be used primarily to pay for operating and capital expenses for the company's polysilicon production plant in Pocatello, Idaho.

Hoku has borrowed all $10 million that is available under the credit agreement, and must repay all borrowed amounts on the five-year anniversary of the effective date of the credit agreement. Loans under the credit agreement are secured by a standby letter of credit drawn by Tianwei New Energy Holdings Co., Ltd. in Chengdu, China and issued to China Merchants Bank, as collateral. Tianwei New Energy Holdings Co., Ltd., is Hoku's majority stockholder.

Interest on borrowed amounts will accrue at the LIBOR rate plus 2%, and is payable annually. Hoku will also pay a facility fee of 2.5% of the total loan amount per annum, payable in arrears with the interest payments, and will reimburse Tianwei for its fees and expenses in providing the standby letter of credit. In addition, the company's polysilicon subsidiary, Hoku Materials, Inc., is guaranteeing the company's obligations to repay Tianwei, and both the company and Hoku Materials are granting to Tianwei a security interest in all of their fixtures and personal property and all proceeds and products from such fixtures and personal property.

Scott Paul, chief executive officer of Hoku Corporation, said, "We are very pleased that Tianwei and China Merchants Bank are providing this $10 million loan to continue funding our business operations and capital expenditures. This is a further indication of Tianwei's long-term support of Hoku's success."

About Hoku Corporation
Hoku Corporation (NASDAQ: [ HOKU ]) is a solar energy products and services company with three business units: Hoku Materials, Hoku Solar, and Tianwei Solar USA. Hoku Materials manufactures, markets and sells polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar markets and installs turnkey photovoltaic systems and provides related services. Tianwei Solar USA markets and sells photovoltaic modules manufactured by Tianwei New Energy. For more information, visit [ www.hokucorp.com ].

Hoku, Hoku Solar, and the Hoku Corporation logo are trademarks of Hoku Corporation, and Hoku Materials is the trademark of Hoku Materials, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.

© Copyright 2012, Hoku Corporation, all rights reserved.

Forward-Looking Statements
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