Hoku Scientific Selling Fuel Cell Products to Auto Company

HONOLULU, Sept. 21 -- Hoku Scientific, Inc. announced today that it has reached an agreement with a global auto company to sell significant quantities of Hoku Membrane(TM) and Hoku MEA(TM). This company is evaluating Hoku Scientific's fuel cell membrane technology for integration into its fuel cell vehicles.

"We have been working closely with this company over the past several months to demonstrate the advantages of Hoku Membrane and Hoku MEA," says Dustin Shindo, chairman and CEO of Hoku Scientific. "Receiving this order from a global leader in the automobile market validates the investment we have made in developing an alternative to today's leading fuel cell membrane technology. A successful outcome will likely serve as the basis for a long-term customer relationship with this company."

In 2003 Hoku Scientific announced its relationship with Sanyo Electric Co., Ltd., to develop a membrane electrode assembly using Hoku Membrane(TM) for integration into Sanyo's residential fuel cell systems. Residential fuel cells in Japan are expected to be the first fuel cell products marketed directly to consumers, beginning in 2005. The automotive industry, however, is forecasted to be the largest ultimate market for fuel cell technologies. "The timing of this supply relationship with an auto company is perfectly matched to Hoku Scientific's growth and commercialization plans," Shindo adds.

Fuel cells use hydrogen and oxygen to generate electricity with only water and heat as byproducts. This technology is the leading zero-emissions solution under development by automotive companies to ultimately replace the internal combustion engine. The consumer availability of fuel cell vehicles, however, has been hindered by high cost and limited performance and durability. Hoku Scientific's proprietary fuel cell membrane and MEA technologies were developed to accelerate the commercialization of fuel cells by lowering their cost while also improving their performance and durability.

Hoku Scientific is a developer of advanced components for Proton Exchange Membrane (PEM) fuel cells. Located in Honolulu, Hawaii, the company is currently focusing its efforts on a new non-fluorinated membrane technology for use in PEM fuel cells, called Hoku Membrane(TM). Hoku Membrane offers the potential for substantially improved performance over today's leading membranes, while reducing production costs by up to 90%. Hoku Scientific is backed by various investors, including Hawaiian Electric Industries, Inc. , Lava Ventures, Advantage Capital Partners and Garage Technology Ventures. Hoku Scientific is an executive member of the US Fuel Cell Council.