REC ASA - Invests NOK 400 million to extend Her...

Sandvika, June  17,  2008:  Renewable Energy  Corporation  (REC)  has
decided to invest  up to NOK  400 million to  upgrade and extend  the
existing production capacity at Herøya.


REC has  today approved  plans to  invest up  to NOK  400 million  to
upgrade and extend the production capacity at the existing plants  at
the Herøya manufacturing complex by approx. 100MW. That should ensure
total wafer production out  of Norway of around  1.75 GW in 2011.  In
addition to the capacity contribution, the investment will also cover
an upgrade of the plants (referred to  as Herøya I and II) to  enable
the implementation  of  next  generation  wafer  and  wire  thickness
levels.

"This project provides  very attractive financial  returns by  adding
capacity at the same time as  closing the technology gap between  the
older  existing   plants  and   the   new  plants   currently   under
construction", says EVP Wafer Ingelise Arntsen.

The extension will be implemented through an integrated  construction
project, and engineering will  commence immediately. Construction  is
scheduled for start-up  towards the  end of the  third quarter  2008,
with ramp-up of the additional production capacity towards the end of
2009.


For more information, please contact;
Ingelise Arntsen, EVP Wafer; [phone]
Jon André Løkke, SVP & IRO; [phone]


About REC
REC is uniquely positioned as one of the most integrated company in
the solar energy industry. REC Silicon and REC Wafer are the world's
largest producers of polysilicon and wafers for solar applications.
REC Solar produces solar cells and solar modules and engage in
project development activities in selected segments of the PV market.
REC Group had revenues in 2007 of NOK 6,642 million and an operating
profit of NOK 2,588 million. Please also see www.recgroup.com