Hoku Scientific Commences Fuel Cell Demonstration for U.S. Navy

KAPOLEI, HI -- (MARKET WIRE) -- Jun 19, 2006 -- Hoku Fuel Cells, a business unit of Hoku Scientific, Inc. (NASDAQ: HOKU) that develops and manufactures fuel cell membranes and membrane electrode assemblies (MEA) for stationary and automotive proton exchange membrane (PEM) fuel cells, today announced that it successfully completed the installation and commenced the demonstration of the first two stationary fuel cell power plants under Hoku Scientific's contract with the U.S. Navy. The power plants will be demonstrated over a one-year period at a building occupied by the Energy and Business Services Division of U.S. Navy Region Hawaii at Pearl Harbor.

In May 2006, Hoku Scientific reported that the U.S. Navy had officially accepted the first two of ten fuel cell power plants. Since reporting the Navy's acceptance of these two power plants, the Navy has accepted two additional power plants, and has completed the approval process for the demonstration site selection and preparation. The remaining seven power plants, six of which will be demonstration systems, are scheduled for factory acceptance, installation and demonstration commencement this summer. These additional power plants are planned for demonstration at the Energy and Business Services Division building, and at the Greater Mid-Pacific Branch Office of the Office of Naval Research, located in the Commander in Chief Pacific Fleet compound.

"Our commencement of the 12-month demonstration program for the U.S. Navy marks a milestone in the evolution of Hoku Fuel Cells," said Dustin Shindo, chairman of the board of directors, president and chief executive officer at Hoku Scientific. "This is our first opportunity to publicly demonstrate the quality of our Hoku MEA products in a real-world customer-driven application. Hoku MEA is our core fuel cell product. Continually optimizing this product for industry-wide adoption will continue to be a focus of Hoku Scientific's corporate research and development efforts."

The stationary fuel cell power plants, or demonstration systems, installed today are designed by IdaTech LLC and incorporate 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 one kilowatt. Each of the fuel cell power plants incorporates an IdaTech fuel processor that produces hydrogen from a mixture of water and methanol.

Commencement of the demonstration program marks the beginning of the third and final phase of Hoku Scientific's contract with the U.S. Navy. The first phase required Hoku Scientific to successfully demonstrate a prototype IdaTech fuel cell power plant incorporating Hoku MEA that generated a minimum net electrical output of one kilowatt. The Company successfully demonstrated the prototype in December 2005. The second phase requires Hoku Scientific to deliver an additional eleven fuel cell power plants based on the prototype design. Four power plants have been accepted by the U.S. Navy, and the remaining seven power plants are scheduled for completion this summer.

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 (MEA) through its Hoku Fuel Cells business unit for stationary (including residential and back-up power applications) and automotive proton exchange membrane (PEM) 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 www.hokuscientific.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to our expectations regarding the U.S. Navy field trials; our ability to deliver seven additional fuel cell systems to the U.S. Navy; the timing of the completion of internal testing and the commencement of the demonstration program for the remaining eight demonstration systems; the performance of our Hoku MEA during such internal tests, and in such demonstration; our relationship with the U.S. Navy and IdaTech; our future financial performance with respect to the U.S. Navy contract; the potential for industry-wide adoption and commercialization of our Hoku MEA products; our ability to successfully enter the solar module and polysilicon markets; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in the company's filings with the Securities and Exchange Commission. Except as required by law, the company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

©2006 Hoku Scientific, Inc. This press release is the property of Hoku Scientific, Inc., all rights reserved. Hoku, Hoku Scientific, Hoku MEA, Hoku Membrane, Hoku Fuel Cells, Hoku Solar and Hoku Materials are the trademarks of Hoku Scientific, Inc., all rights reserved.

Contact: Hoku Scientific, Inc. (808) 682-7800 Email Contact

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