Temporary Shutdown To Affect 200 Employees At REC

On the basis of further weakening of the solar market,
Renewable Energy Corporation ASA (REC) has decided to initiate a process with
the trade unions, with the intention to temporary halt 60 percent of the
capacity of the 650 MW multicrystalline wafer facility at Herøya, Norway from
December 1, 2011 through the first quarter 2012. The temporary shutdown is
expected to affect approximately 200 employees.

The debt crisis in Europe and the turmoil in the capital
markets continue to have severe negative impact on demand in the solar market. Since
October 1st, market prices for modules, wafers and polysilicon are down
approximately 10 percent, 30 percent and 35 percent respectively. In addition
to the price pressure, REC is currently experiencing low visibility on sales
volumes and inventories are increasing across all product areas. If the solar
market is not improving, further adjustments of production levels will be
made.  

Compared to the third quarter 2011, lower sales prices and
reduced sales volumes are expected to negatively affect REC's financial results
in the fourth quarter 2011, in particular in REC Silicon.

"In this very challenging market environment the solar
industry is set for a phase of shake-out and consolidation over the next 1-2
years. REC needs to adapt production to the prevailing market conditions. With
our strong positions in Singapore and the US, and with support from all our
stakeholders, we are well positioned to benefit from the improved
competitiveness of solar energy. I am encouraged by our organization's ability
to continue to cut costs and develop new technologies." CEO Ole Enger
says.