Disposal of Shareholding in Carnegie Wave Energy

13 July 2012

Renewable Energy Holdings plc

("REH" or the "Company")

Disposal of shareholding in Carnegie Wave Energy Limited

Renewable Energy Holdings plc (AIM: REH) today announces the sale, on 12 July 2012, of 113,639,808 ordinary shares in Carnegie Wave Energy Limited ("CWE"), representing approximately 11 per cent. of the entire issued share capital of CWE, to a small consortium of Australian investors, led by 88 Green Ventures (Australia) (together, the "Purchasers") (the "Sale").

The Sale was effected via an off-market transfer at a price of 1 Australian cent per share, representing a discount of 2.5 Australian cents to the current market price and a total cash consideration of AUD 1,136,398 (approximately £746,000) and represents approximately 53 per cent. of REH's previous shareholding in CWE.

Following completion of the Sale, REH will hold 101,330,192 shares in CWE, representing approximately 10 per cent. of the entire issued share capital of CWE. However, REH also announces that it has agreed to distribute this remaining shareholding in CWE to all REH shareholders via an in specie distribution (the "Distribution"), expected to be completed before the end of 2012. REH's remaining CWE shares will be held in voluntary escrow until the Distribution occurs and further announcements will be made in due course as appropriate.

The Sale and the Distribution are in line with REH's stated strategy, previously announced on 30 April 2012, to dispose of all of the Company's assets and return the net proceeds to shareholders. It is currently intended that the net proceeds of the Sale will be used to meet the Company's ongoing working capital requirements.

Mike Proffitt, Chief Executive Officer, commented:

"We are pleased that this transaction has taken place, as it allows REH to fund its working capital requirements and continue to benefit from the transparency and governance of a listed company throughout the period of realisation of the Company's assets, while enabling our shareholders to have direct ownership in CWE following completion of the Distribution."

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