Preliminary Results

8 March 2010

Renewable Energy Holdings plc

("REH", "the Company" or "the Group")

Preliminary results for the twelve months ended 31 December 2009

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of European wind farms, is pleased to announce its preliminary results for the twelve months ended 31 December 2009.

Highlights

·; Revenue (including discontinued operations) £8.94 million (2008: £5.31 million)

·; Profit before tax £11.2 million (2008: loss of £2.11 million)

·; Group ended the year with cash balances of £2.3 million (2008: £6.5 million)

·; Sold CETO Wave Technology ("CETO") to Carnegie Wave Energy Limited ("Carnegie") for 232,600,000 fully paid new ordinary shares of Carnegie

·; REH is Carnegie's largest shareholder with an interest of approximately 30% enabling REH to continue to participate in CETO

·; Post year end, completed disposal of landfill gas asset, Bryn Posteg, giving a profit on disposal of £300,000 potentially rising to £800,000 from exercising the upside participation clause in the disposal agreement (the "Agreement")

·; Acquired Gamar GHL, a Polish windfarm development company fully permitted to build a 30MW windfarm in S.E. Poland, for approximately £1.8 million

Commenting on the results, Mike Proffitt, Chief Executive of REH, said:

"The Company had an exciting and profitable year in 2009 having sold CETO to Carnegie whilst retaining a major interest in the technology. This sale, combined with the recent disposal of Bryn Posteg, is in line with the Company's new strategic focus on windpower whilst actively managing our assets.

"Despite the economic environment, the management team believes that REH has chosen the correct strategy for growth and hence the Board looks to the future with renewed confidence."

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Renewable Energy Holdings plc

("REH", "the Company" or "the Group")

Unaudited preliminary results for the year ended 31 December 2009

Chairman's Report

This year has been one of great unpredictability.

Despite a strongly supportive political environment for renewable energy across Europe, pipeline projects both within the Company and across the sector as a whole have stalled as the turbulent global economy and weak capital markets have resulted in the restriction of funding to small but capital intensive, growth businesses such as REH. The effect of this on REH has been a considerable extension to the timetable envisaged to build out our 30MW Polish wind farm project.

In Germany, home of our established operational wind assets, the wind speeds have yet again been substantially below the 20 year index, leaving all wind farms, including ours, operating below original expectations. We are currently looking at financial options to improve the return to the company from these assets.

Our landfill gas operation in Wales performed in line with expectations and, following the year end, was sold as part of the new wind-focussed business strategy, as detailed in the Chief Executive Officer's report. This sale realised a profit on disposal of £300,000 which is expected to increase to £800,000 from the upside-participation clause in the Agreement.

The new business strategy, referred to above, included the sale of CETO to Carnegie, resulting in a crystallisation of shareholder value and the removal of any further obligation to provide cash support for the continuing development of CETO, whilst securing a substantial share of all future value.

Following the CETO and Bryn Posteg disposals, REH's resources, both in financial and personnel terms, will be concentrated on wind assets in the UK and Europe.

This being the case, we now expect significant progress towards the realisation of our pipeline of wind projects, namely our Polish project, Gamar GHL (30MW), and our Welsh project, Mynnydd y Gwynt (69MW).

Our business strategy now recognises that to deliver value for our shareholders we should not simply seek to acquire, build and operate wind assets, but actively to manage our portfolio and development opportunities by acquisition, operation, or disposal at any time so as to secure the best returns for our shareholders.

This strategy allows us to continue to operate as a small team, incurring a low overhead, placing the least possible demands on cash resources.

Outlook

We have had an excellent, profitable year, despite worldwide economic instability. The Directors believe we are shaping the Group and its strategy to respond positively to the challenges of what remains a difficult financial environment, and that shareholders will gain significant returns from the Company in the future.

Sir John Baker

Chairman

8 March 2010

Renewable Energy Holdings plc

("REH", "the Company" or "the Group")

Unaudited preliminary results for the year ended 31 December 2009

Chief Executive Officer's Report

I am pleased to report this year's results, which I believe show a company and management capable of adapting to changing circumstances.

We have carried out a financial and strategic review of our business and identified three measures to ensure a more focused strategic approach to our future growth:

(i) Rationalising the company's assets towards one technology (on-shore wind) thereby allowing investors to assess risk more easily

(ii) Eliminating the cash support obligation for CETO's development

(iii) Seeking to put the Group in a position to develop its pipeline of projects achieving economic stability without depending on placement of new ordinary shares.

Rationalisation

In Q2 2009, the Board announced its proposal to sell CETO to Carnegie, a transaction that was completed on 23 December 2009. From a Balance Sheet perspective the transaction replaced an intangible asset of £12.1 million, with 232,600,000 shares in Carnegie which had a value of £20.9m at 31 December 2009. These shares are restricted from trading until 23 December 2010.

The CETO sale not only crystallised value for shareholders, but also captures around 30% of its future value growth, whilst also ending REH's obligation to fund the remaining development costs. The sale terminates the licence agreement dated 9 April 2008 between REH and Carnegie and as a consequence to such termination, released to the income statement, £3.9 million in paid licence fees which would have been recognised as income over the 30 year period of the licence, but which are now recognised in full, in this accounting period. The sale also strengthens the REH Balance Sheet by £11.1 million. We continue to believe in the strength of CETO which will begin in-sea testing of the full scale pre-commercial design during the course of 2010. REH will endeavour to keep the market updated with CETO's continuing development.

During the year it became clear that because of the difficult conditions in the capital markets REH would be unable to leverage its experience in operating gas-recovery schemes by the acquisition of new projects. In January 2010 the Board announced the sale of the Group's existing landfill gas asset. This transaction subsequently completed on 23 February 2010 resulting in disposal and profit on disposal of £300,000 and the prospect of an additional £500,000 from the agreement which provided for participation in future benefits.

The Company's operational assets

Germany

The Group's German wind assets generated 60,779 MWh in the year, 2,595 MWh less than in 2008. The wind regime has been unprecedentedly poor and again well below the 20 year index, leaving all wind farms operating below original expectations.

While the German wind farm is often regarded as one project, it is in fact three separate sites separated by circa. 6 kilometres, each having differing terrain and adjacent forestry.

Two sites, namely Kesfeld I and Kirf have consistently outperformed the third site known as Kesfeld II. All three sites are financed as a package and cross collateralised.

In line with the Company's renewed strategic focus on maximising returns from operating assets the Directors will seek to sell Kesfeld II making it much easier for Kirf and Kesfeld I to pay dividends in the future.

Poland

During the year the Company acquired Gamar GHL, a Polish development company with 30MW of fully permitted wind generation, for approximately £1.8 million.

We will seek early construction of this project, which we consider will be profitable and enhance our cash flow from operations. However, the Directors also believe the market value of the permits exceeds the cost of acquisition, giving the Company a valuable option of sale if needed.

Wales

The Company owns an exclusive option to purchase a 69MW wind farm development in Wales which the Board considers to be extremely attractive. The Company will apply for planning permission for this project shortly.

Because of the size of this project, the Directors are considering entering into a joint development agreement which could monetise significant value and assist the Company in developing other projects.

Carnegie Wave Energy Shares

The Group now holds 232,600,000 shares in Carnegie, valued at £23.7m on the balance sheet, which it is restricted from trading until 23 December 2010.

The Company also has the right to appoint two Directors to the board of Carnegie, and has therefore appointed Michael Proffitt and Jeff Harding (a former Director of REH and an Australian resident).

Through its representation on the Carnegie board, the Company is continuing to monitor the progress of CETO, to assess the likelihood and timing of commercial success and to ensure REH's interests, and those of its shareholders, are appropriately represented.

From the results of ongoing testing of the CETO wave technology so far, the Directors believe that these shares will provide excellent value for the REH shareholders in the long term.

New Pipeline

We continue to enjoy an excellent deal flow within our strategic geography, i.e. UK and Europe, and consider that the Polish and Welsh wind farm projects will prove to be useful building blocks in the programme of evaluating and developing appropriate development opportunities.

Cost Control

The discontinuation of the obligation to meet CETO development costs has had a materially positive effect on the use of REH's cash resources. In addition we have been able to reduce our overheads, providing budgeted savings totalling circa. £500,000 per annum.

In conclusion, I believe that despite the financial turbulence referred to in the Chairman's report, the Company has chosen the correct strategy for growth and has demonstrated its ability to adapt quickly and effectively to changes in market conditions. This, I believe, will deliver shareholder value in the near term.

Michael J Proffitt

Chief Executive Officer

8 March 2010

Renewable Energy Holdings plc

Unaudited consolidated income statement for the year ended 31 December 2009

Renewable Energy Holdings plc

Unaudited consolidated statement of comprehensive income for the year ended 31 December 2009

Renewable Energy Holdings plc

Unaudited consolidated statement of changes in equity for the year ended 31 December 2009

Renewable Energy Holdings plc

Unaudited consolidated statement of changes in equity for the year ended 31 December 2008

Renewable Energy Holdings plc

Unaudited consolidated balance sheet at 31 December 2009

Renewable Energy Holdings plc

Unaudited consolidated balance sheet at 31 December 2009 (Continued)

Renewable Energy Holdings plc

Unaudited consolidated cash flow statement for the year ended 31 December 2009

Renewable Energy Holdings plc

Unaudited consolidated cash flow statement for year ended 31 December 2009

Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2009

1 Basis of preparation

This unaudited consolidated preliminary financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs).

The principal accounting policies used in preparing the preliminary results are those the Group expects to apply in its audited financial statement for the year ended 31 December 2009 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 31 December 2008, except for the adoption of IAS 1 "Presentation of Financial Statements" (Revised).

IAS 1 Presentation of Financial Statements (Revised) includes the requirement to present a Statement of Changes in Equity as a primary statement and introduces the possibility of either a single Statement of Comprehensive (combining the Income Statement and a Statement of Comprehensive Income) or to retain the Income Statement with a supplementary Statement of Comprehensive Income. The second option has been adopted by the Group in the preparation of the preliminary financial statements. As this standard is concerned with presentation only it does not have any impact on the results or net assets of the Group.

The unaudited financial information set out in this preliminary announcement does not constitute the Group's statutory accounts for the years ended 31 December 2009 and 31 December 2008. The financial information for the year ended 31 December 2008 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified and did not contain a statement under section 15 (4) or 15 (6) of the Isle of Man Companies Act 1982. The statutory accounts for the year ended 31 December 2009 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies following the company's annual general meeting.

The Revenue and Gross profit for the Group have been presented in a more detailed format than in previous reporting periods. The Directors believe that this presentation makes the nature of these items more transparent to the users of the Financial Statements.

Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2009 (Continued)

2 Segment information

 The Group's primary reporting format for reporting segment information is business segments, the segments are defined as Head Office, CETO development, Windfarm Germany, Windfarm Poland and Landfill gas. This split coincides with a geographical split of activities; Head Office being on the Isle of Man, CETO development taking place in Australia, Windfarms being in Germany and Poland and Landfill gas being in Wales.

Renewable Energy Holdings plc

Notes forming part of the preliminary results for the year ended 31 December 2009 (Continued)

Segment information (Continued)

All intercompany balances and transactions are excluded from the above analysis.

Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2009 (Continued)

3 Property, plant and equipment

On the 21 January 2010 the group signed a sale and Purchase agreement for the sale of the shares in Gwynt Cymru Limited. As a result the company's assets have been treated as held for sale

Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2009 (Continued)

4 Intangible assets

On the 21 January 2010 the group signed a sale and Purchase agreement for the sale of the shares in Gwynt Cymru Limited. As a result the company's assets have been treated as held for sale. Prior to this transfer the cost of the landfill gas rights were being amortised over the period to 30 April 2026

The in process research and development asset was acquired with the purchase of REH (Australia) Pty Ltd (formerly Seapower Pacific Pty Ltd). From 1 January 2007 the CETO development expenditure incurred has met the relevant criteria under IAS 38 Intangible Assets and has been capitalised. CETO development expenditure ceased upon the disposal of the CETO intellectual property on 12 October 2009

The Kobylany permissions and permits were acquired upon the Group's acquisition of the Polish wind development company GAMAR GHL.

Renewable Energy Holdings plc

Notes forming part of the unaudited preliminary results for the year ended 31 December 2009 (Continued)

5 Financial assets and liabilities-numerical information

Maturity of borrowings

The carrying amounts of borrowings, all of which are exposed to cash flow or fair value interest rate risk, are repayable as follows: