The City of Pocatello has reserved 450 vacant acres for Hoku's facilities and future expansion. Subject to financing and other conditions, engineering and construction is planned to begin this year, and Hoku expects the plant to be operational in late 2008, according to a news release from the company.

The plant, operated by Hoku Materials, will produce a highly pure form of silicon, the key material used in most solar power systems.

"We are pleased to have selected the City of Pocatello as the location for our polysilicon production facility," said Dustin Shindo, chairman, president and CEO of Hoku Scientific. "We believe Pocatello is an ideal location for a business of this nature due to its pro-business environment, highly skilled labor force and ability to meet the operational needs of a growing company such as ours."

Idaho Governor C.L. "Butch" Otter praised Hoku's decision to locate in Idaho. "It speaks well of the company's commitment to efficiency and employing a quality work force. It also says great things about the people of the Pocatello area and Idaho's commitment to attracting good jobs to our state."

The state government, developers, the city and Idaho State University have been working together successfully to attract high-technology companies like Hoku Materials to southeastern Idaho. The state has offered $1.2 million in work force training funds to the company and $200,000 to the City of Pocatello to offset public facility costs necessary to facilitate Hoku's plans.

Hoku's shares closed up 8 cents at $2.66 today on the Nasdaq Stock Market.