Carnegie CETO 4 manufactured and delivered

26 September 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie CETO 4 manufactured & delivered to Reunion Island

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 26 September 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 25.8% of the entire issued share capital.

"26th September 2011

CETO 4 manufactured & delivered to Reunion Island

·; Next generation CETO 4 unit manufactured and delivered to Reunion Island

·; Installation scheduled for the Southern Hemisphere summer

·; Project supported by French Government grant funding

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to advise that its next generation commercial scale CETO unit (CETO 4) has been manufactured and delivered to its deployment location on Reunion Island by French marine defence contractor DCNS.

The unit will now undergo pre-deployment testing similar to the CETO 3 pre-deployment testing undertaken by Carnegie at its Fremantle test facility in Western Australia earlier this year. Once pre-deployment testing is completed, and subject to completion of some final installation aids, offshore installation is currently scheduled to take place during the Southern Hemisphere summer.

The CETO 4 unit will be deployed and tested offshore at the Reunion Island project site. Successful testing and operation of CETO 4 is planned to be followed by a grid-connected 2MW CETO project at the same site with subsequent further expansion to 15MW. Activities to date have been two-thirds funded by French Government grants and the grid connected project will receive a marine energy feed-in tariff.

Carnegie's Managing Director and Chief Executive Officer, Dr Michael Ottaviano said, "The CETO 4 project represents the first joint project activities of Carnegie, EDF EN and DCNS. As well as testing the CETO system in a different wave climate, we've taken the opportunity to test some new design ideas. We're grateful to the support of the French Government and the local Reunion region."

The activities associated with Reunion Island and CETO 4 follow on from the signing of a CETO technology licence and joint venture agreement with EDF EN in 2009 and a Memorandum of Understanding (MoU) with EDF EN and DCNS in 2010. The MoU outlined the intention of the parties to work together to test a single CETO unit ahead of a 2MW CETO project which would be expanded to a 15MW project at the same site at Reunion Island.

DCNS performs engineering, procurement, and construction management (EPC) activities for the project. The CETO 4 unit involves some design modifications from the recently tested and independently verified CETO 3 unit deployed off Western Australia.

The activities are consistent with the Carnegie and EDF EN technology licence and joint venture agreement which established the framework for Carnegie and EDF EN to work together to jointly deliver projects in the Northern Hemisphere and on Reunion Island. All commercial stages beyond the initial CETO 4 unit deployment will result in Carnegie being paid a fee for licensing the CETO technology to the projects.

About Electricité de France (EDF)

The EDF Group is one of the largest power companies in the world. It operates over 150,000 MW of installed capacity and generates 630 TWh per year globally across a generation portfolio that includes nuclear, coal, gas, solar and wind. In December 2009, Carnegie and EDF EN, the renewable energy arm of EDF, signed a joint venture and licence agreement to deploy CETO projects throughout the Northern Hemisphere and Reunion Island.

About DCNS

DCNS is a leading European player on the world market for naval defence systems. The Group designs, builds and supports surface ships, submarines and mission-critical systems and equipment incorporating the most advanced technologies. Drawing on its dedicated teams, proven expertise and extensive industrial resources, DCNS is also expanding into new markets in civil nuclear energy, marine renewable energy and naval and industrial services. The DCNS Group employs 12,500 staff and generates annual revenues of around €2.5 billion. It is 75% French Government owned and 25% owned by the Thales Group

About CETO

The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor. An array of fully submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline.

On shore, high-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity. The high-pressure water can also be used to supply a reverse osmosis desalination plant, replacing greenhouse gas emitting electrically driven pumps usually required for such plants.

CETO Technology characteristics include:

·; CETO converts ocean wave energy into zero-emission electricity and desalinated water

·; CETO is environmentally friendly, has no visual impact and attracts marine life

·; CETO is fully submerged in deep water away from breaking waves ,beachgoers and where it is safe from storms

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property."

Ends

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