Sandvika, September 9, 2009, REC has decided to terminate a long-term 
take-or-pay contract with the Chinese solar energy company China 
Sunergy for deliveries of mono wafers. China Sunergy has not renewed 
the required guarantees and the parties have not agreed on revised 
terms. As a consequence, REC has called upon a USD 50 million bank 
guarantee established by the customer to cover its payment 
obligations. 
 
REC has since 2006 signed several long-term take-or-pay contracts 
with a range of customers. In these contracts both price and volume 
are typically predetermined for the entire contract period, and no 
mechanisms allow the customer to renegotiate terms and conditions. 
These contracts are also typically supported by bank guarantees 
established to secure part of REC's outstanding receivables. 
 
Given the increasingly difficult market development in 2009, with 
falling prices and declining capacity utilization, REC has engaged in 
dialogue with its customers in order to assist them in coping with 
the short-term effects of the market downturn. In most cases, REC and 
its customers have been able to find solutions for 2009 which are 
commercially acceptable to both parties. Should the market weakness 
continue into 2010, it may be in REC's best interest to make further 
contractual adjustments. 
 
The contract in question was entered into in 2008 as a take-or-pay 
contract as described above. The total contract value is estimated at 
NOK 2.4 billion, covering deliveries of predefined volumes at 
pre-defined prices in 2009-2015. The contract prices were at the time 
of signing considerably below the spot market price for mono wafers, 
reflecting the long-term nature of the commitment by both parties. 
 
REC has made serious efforts to reach an agreement that could lay the 
basis for continued cooperation with China Sunergy. As REC saw the 
possibility of finding solutions of common interest, REC has 
demonstrated a high degree of flexibility to discuss a range of 
options that could address customer needs. Despite this, it has 
regrettably not been possible to resolve the situation, and REC has 
therefore decided to call upon the existing time-limited bank 
guarantees to protect its interests. 
 
In this particular contract, the bank guarantee structure requires 
annual renewal, but China Sunergy has failed to provide and renew 
sufficient bank guarantees in time. It is REC's intention to continue 
the negotiation with China Sunergy to try to find an acceptable 
solution. However, as the bank guarantees may cover only parts of the 
loss, REC will also consider further legal actions to cover any such 
loss. 
 
For more information, please contact: 
Jon André Løkke, SVP and Investor Relations Officer, +47 907 44 949 
 
 
About REC 
REC is the leading vertically integrated player in the solar energy 
industry. REC Silicon and REC Wafer are among the world's largest 
producers of polysilicon and wafers for solar applications. REC Solar 
is a rapidly growing manufacturer of solar cells and modules, and are 
also engaging in project development activities in selected segments 
of the PV market. REC had revenues of NOK 8 191 million and an 
operating profit of NOK 2 529 million in 2008. Close to 3 000 
employees work in REC's worldwide organization. Please also see 
www.recgroup.com. 
 
 
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