• To ensure assured supply of high quality silicon wafers for eight years starting from 2008.
   

New Delhi –27th July 2007: Moser Baer Photo Voltaic Limited (MBPV), a subsidiary of Moser Baer India Limited (MBI), and the Norway based REC Group today announced the signing of a definitive contract for sale and delivery of high quality multicrystalline silicon wafers by REC to MBPV over an eight-year period beginning from 2008.
 

According to Ravi Khanna, CEO, MBPV, “We greatly value the technical, managerial and operation capabilities of REC and we believe that this strategic sourcing deal is a win-win situation for both sides. It will provide a long term customer for REC and an assured supply of high grade silicon wafers to MBPV.”
 

Globally, given the rapid growth of the photovoltaic industry, there is a shortage of silicon wafers, a key raw material for the photovoltaic industry. While the demand continues unabated, the supply is expected to remain tight in the near to medium term. An assured supply of silicon wafer will provide a significant competitive advantage to MBPV in the current industry scenario.
 

The contract follows MBPV’s strategic sourcing initiative with Deutsche Solar and its acquisition of a 40% strategic equity stake in the Slovenia-based Solarvalue Proizvodnja d.d. which plans to set up a capacity of 4,400 tonnes of solar grade silicon by end 2008. The three pronged strategy is part of our objectives to access a regular supply of high quality solar grade silicon at competitive pricing.
 

The REC contract is structured as a take-and-pay contract with a reducing price trend on an annual basis with a cumulative potential value of approx. US$ 880 million. The delivery of wafers under the new contract is expected from 2008 and continuing over an eight-year period from the first shipment. The contract assures a regular supply of silicon wafers in the medium to long term and also ensures that the company benefits from any increased efficiencies in the silicon wafer market in the future.
 

“We are very happy to add Moser Baer as one of our strategic customers, a company that has clearly proven track record of mass production of quality products”, says Ingelise Arntsen, Executive Vice President in REC.
 

MBPV is straddling multiple future technologies as it believes in a customer driven approach in providing optimized products to installations across the world. Responding to the rapidly expanding solar PV market, where worldwide demand far outstrips supply, MBPV is moving towards technological leadership and developing a sustainable competitive edge by investing into disruptive technologies.
 

About Moser Baer Photo Voltaic Limited
Moser Baer Photo Voltaic incorporated in New Delhi, a wholly owned subsidiary of Moser Baer India Ltd, in the business of photovoltaic (PV) cells and modules. MBPV plans to manufacture solar cells and modules by straddling multiple technologies including crystalline silicon, concentration, nano technology and thin films. The manufacturing facilities are housed in a renewable energy SEZ at Greater Noida.
 

The parent company Moser Baer India Limited is the second largest manufacturer of optical storage media in the world having five state of the art facilities at Noida and Greater Noida. MBI reported revenues of over Rs 2,000 cr in FY07. Please also see www.moserbaer.in; www.moserbaerpv.in
 

About REC
REC is uniquely positioned in the solar energy industry with a broad presence across the solar value chain. 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. REC Group had revenues in 2006 of NOK 4,334 million and an operating profit of NOK 1,574 million. Please also see www.recgroup.com