A total of ten power plants are now being demonstrated over a one-year period in accordance with a test plan approved by the U.S. Navy. Six of these power plants are located at a building occupied by the Energy and Business Services Division of U.S. Navy Region Hawaii at Pearl Harbor, and the remaining four are located at the Greater Mid-Pacific Branch Office of the Office of Naval Research, located in the Commander Pacific Fleet compound. The test plan is designed to assess the performance of Hoku MEA under a variety of real-world operating conditions.

"The commencement of this demonstration marks a key milestone for Hoku," said Dustin Shindo, chairman of the board, president and CEO of Hoku Scientific. "This is the first field demonstration of our hydrocarbon-based Hoku MEA integrated into an OEM fuel cell system, and we believe this is the first field test of any non-fluorinated membrane in a low temperature stationary hydrogen fuel cell application."

Each of the stationary fuel cell power plants being demonstrated was designed by IdaTech LLC and incorporates Hoku MEA to generate net electrical output of approximately 1.5 kilowatts. Hoku Scientific's contract with the U.S. Navy requires a minimum net electrical output of 1.0 kilowatt per power plant. Each of the fuel cell power plants incorporates an IdaTech fuel processor that produces hydrogen from a mixture of water and methanol. In addition to the ten power plants being demonstrated for the U.S. Navy, Hoku Scientific will incorporate its Hoku MEA into one power plant that will be kept at Hoku Scientific's facility for laboratory observation, and as a replacement unit if any of the demonstration power plants require off-site maintenance. This additional power plant is expected to be completed in August 2006.

About Hoku Scientific, Inc.

Hoku Scientific (NASDAQ:HOKU) is a clean energy technologies company that develops and manufactures fuel cell membranes and membrane electrode assemblies through its Hoku Fuel Cells business unit for stationary (including residential and back-up power applications) and automotive proton exchange membrane fuel cells. Hoku Scientific is currently planning to expand its business to manufacture solar modules and polysilicon through its Hoku Solar and Hoku Materials divisions, respectively. For more information visit http://www.hokuscientific.com.