Norway - Renewable Energy Corporation (RES; www.recgroup.com) has agreed to terminate a long-term wafer sales contract and has received USD 35 million cash compensation.

In the period 2006 - 2008, REC entered into a number of long term take-or pay wafer sales contracts and most of the contracts were supported by bank guarantees. REC has now accepted to terminate one of these contracts and has received a cash compensation of approximately USD 35 million.

Income from this cancellation will be recognized in the second quarter 2012.