REC Silicon

Earnings Release • Jul 18, 2014

REC Silicon ASA :REC Silicon ASA's second quarter 2014 results

REC Silicon ASA :REC Silicon ASA's second quarter 2014 results

Fornebu, July 18, 2014: REC Silicon ASA reported second quarter 2014 revenues of

USD 126.9 million and EBITDA from continuing operations of USD 31.6 million.

Debt has been reduced by USD 125 million to USD 283 million, primarily due to

the repayment of the Euro 81 million convertible bond.

REC Silicon Segment reported second quarter revenues of USD 126.8 million,

compared to USD 113.3 million in the previous quarter. The corresponding EBITDA

during the second quarter was USD 33.1 million compared to USD 19.5 million in

the previous quarter. The increased EBITDA can be attributed to higher sales

volumes and selling prices partially offset by higher manufacturing costs.

Higher average polysilicon prices reflect continued strong demand for solar

grade polysilicon and increasing acceptance of granular polysilicon by the

market.

Silicon gas sales volumes continued to be strong. Sales were driven by a

combination of improved Photovoltaic, Flat Panel Display, and Semiconductor

demand and by competitive capacity being currently offline.

"Strong second quarter EBITDA demonstrates the strengthening demand for granular

polysilicon and silicon gases in the market" commented Tore Torvund, CEO of REC

Silicon.  "During the quarter, we successfully completed the five year

inspection program in Silane III. Although these outages resulted in higher cost

during the first half of 2014, we have completed the planned outages and will

operate at full capacity for the remainder of the year."

Net financial items were an income of USD 21.4 million, mainly reflecting net

currency gains, and fair value adjustment of convertible bonds offset by

interest expense.

The profit from continuing operations was USD 24.6 million in the second

quarter, compared to a loss of USD 49.7 million in the previous quarter. The

improved result mainly reflects higher EBITDA and positive net financial items.

Basic and diluted EPS from total operations was USD 0.01 in the second quarter

2014, compared to USD -0.02 in the previous quarter.

For more information, please see the attached second quarter 2014 report.

Morning program:

On the release day, Tore Torvund, CEO of REC Silicon will give a presentation

together with the CFO.

The presentation will take place at 08:00 a.m. CET at Konferansesenteret Høyres

Hus, Stortingsgaten 20, 0117 Oslo, Norway.

There will be a live webcast from the presentation which can be accessed from:

www.recsilicon.com. The presentation will be held in English.

It will also be possible to listen to the presentation through a conference

call.

Please make sure to dial in 10 minutes prior to scheduled start time on one of

the following numbers:

Norway Toll Free: 800 56 054

UK Toll Free: 0800 279 5004

USA Toll Free:  1877 280 2342

International Toll: +44 (0)20 3427 1914

Please provide confirmation code 3113809 and state your name, company and

country of residence.

Afternoon program:

REC Silicon will host an analyst conference call with possibilities for

questions and answers later the same day at 3:00 p.m. CET. Please make sure to

dial in at least five minutes ahead of time to complete your registration.

International dial in: +47 2350 0486

Please provide confirmation code 5218190 and state your name, company and

country of residence.

For further information, please contact:

Pål Elstad, Investor Relations

REC Silicon ASA

Phone: +47 991 66 293,

Email: pal.elstad@recsilicon.com

About REC Silicon

REC Silicon is a leading producer of advanced silicon materials, delivering

high-purity polysilicon and silicon gas to the solar and electronics industries

worldwide. We combine 25 years of experience and proprietary technology with the

needs of our customers, and annual production capacity of more than 20,000 MT of

polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock

Exchange (ticker: REC), the company is headquartered in Moses Lake, Washington

and employs 720 people.

For more information, go to: www.recsilicon.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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