"Our plans to enter the solar power market represents the logical extension of our business as a provider of clean energy technologies, and complements our core fuel cell business," said Dustin Shindo, chairman of the board of directors, president and chief executive officer of Hoku Scientific. "However, while the market for fuel cell products is still emerging, the solar market is already a rapidly growing industry. One of the primary limits to the growth of the solar market is supply constraints of polysilicon, the key material used in solar modules and integrated circuits. To address these supply constraints, we also plan to manufacture sufficient quantities of polysilicon to meet our initial and future expected demand."

Hoku Scientific intends to operate the solar module business as a separate business under the name "Hoku Solar." Hoku Solar expects to enter the market through the manufacture and sale of polysilicon-based photovoltaic modules, with planned initial manufacturing capacity of 30 megawatts per year beginning in the second half of calendar year 2007. Hoku Scientific intends to build a polysilicon processing plant designed to initially produce up to 1,500 metric tons of polysilicon per year, beginning in the second half of calendar year 2008. The polysilicon plant is expected to be operated by Hoku Scientific as a separate business under the name "Hoku Materials." Initially, plans call for approximately 300 metric tons of polysilicon produced by Hoku Materials to be allocated to Hoku Solar, while the remaining 1,200 metric tons are expected to be available for sale to the solar and integrated circuit markets. The Company's ability to implement these plans on this schedule is subject to a number of requirements, including the Company securing necessary financing, obtaining all intellectual property rights necessary to implement its plans, hiring sufficient qualified technical and manufacturing personnel, continued high demand for solar modules, and other matters.

Hoku Scientific also intends to form a new business unit called "Hoku Fuel Cells" to continue the Company's core business of developing, marketing, manufacturing and selling membranes and MEAs for stationary and automotive PEM fuel cells.

"This change to our organization reflects the diversification of our business and the pursuit of related clean energy technology opportunities," said Shindo. "We are confident in the long-term opportunity of the fuel cell market in general, and we remain committed to our traditional fuel cell business. With our plans to enter the solar and polysilicon markets, Hoku Scientific is positioning itself to become a world-leader in diversified clean energy technologies."

Hoku Scientific will hold a conference call with investors and analysts after the market closes on Thursday, June 1, 2006 at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to provide additional details on the Company's plans for Hoku Solar, Hoku Materials and Hoku Fuel Cells. All interested parties are invited to call-in. To participate, please call +1 (913) 981-5543. A live webcast can also be accessed by going directly to the Company's web site at www.hokuscientific.com and electing the conference call link on the home page. A replay of the webcast will be available for seven days following the conference call.

In addition, Dustin Shindo, the company's chairman, president and chief executive officer, will present at the 34th Annual Cowen & Company Technology Conference on Wednesday, May 31, 2006. The conference will take place at the New York Palace Hotel. The presentation will begin at 3:05 p.m. Eastern Time/12:05 p.m. Pacific Time, and will be made available over the Internet via live webcast. The live webcast may be accessed via the investor relations section of Hoku Scientific's website at www.hokuscientific.com or at the following URL: http://www.corporate-ir.net/ireye/confLobby.zhtml?ticker=HOKU&item_id=1320475. A replay of the webcast will be available for seven days following the conference.