ASiMI Announces Joint Venture for Solar Grade Polycrystalline Silicon

source: press release 2002.3.18

Moses Lake, WA (March 18, 2002) - Advanced Silicon Materials LLC
(ASiMI), a United States subsidiary of Komatsu Ltd. and a manufacturer of
polycrystalline silicon, and Renewable Energy Corporation (REC) of Norway
have recently signed a letter of intent to establish a joint-venture company.
Under the proposed arrangement, ASiMI will convert its Moses Lake Plant
into a plant dedicated to produce polycrystalline silicon for solar
applications. After finalizing specific conditions, the two companies plan to
conclude a definitive agreement around the summer of this year.

For the establishment of the joint venture, ASiMI’s major contribution will
be the transfer of the Moses Lake Plant consisting of its silane gas plant and
related facilities, while REC’s major contribution will be to provide financing
for granular polycrystalline silicon technology development and working
capital. The joint venture will start with 50:50 equity participation. The
establishment of the joint venture is subject to the achievement of cost
reductions, the negotiation of definitive agreements, and various other
conditions, including obtaining any applicable regulatory approvals.

In light of belated recovery in demand for polycrystalline silicon for use in
semiconductors against the backdrop of depressed market conditions for
semiconductors worldwide, ASiMI has discontinued production at the
Moses Lake Plant. As a result, an impairment loss will be recorded at the end
of the current fiscal year. ASiMI has studied the possibility of converting
the Moses Lake Plant into a plant dedicated to produce polycrystalline
silicon for solar applications. REC, on the other hand, has for a long time
worked to develop a stable supply network of polycrystalline silicon for
solar applications, whose demand has demonstrated outstanding growth for
the last few years with a bright prospect for future growth.

Mr. Reidar Langmo, President of REC, explained, "The joint venture should
become a major milestone to reduce future shortage of silicon for the solar
industry. It will also offer an opportunity for the solar industry to grow with
minimal impacts of semiconductor market conditions and lead to stabilization
of silicon raw material prices."

Mr. Michael W. Kerschen, President of ASiMI, commented, "The new
company should be able to reopen the Moses Lake Plant, and that is very
important for the local community."

Outline of Renewable Energy Corporation AS
Head Office: Oslo, Norway
Line of Business: REC is a Norwegian based holding company active in the
entire value chain of solar energy. REC is the main shareholder in ScanWafer
ASA, one of the major independent producers of silicon wafers for the PV
industry.

Outline of Advanced Silicon Materials LLC
Head Office: Moses Lake, WA 98837, U.S.A.
Line of Business: ASiMI is a leading producer of ultra-high purity
polycrystalline silicon, and the world's largest manufacturer and supplier of
silane gas. Both products are integrated using a unique core technology to
create a base material for silicon wafers and devices produced in the
semiconductor industry.

ASiMI Media Relations: Mike Kerschen, (509) 765-2106