Re: Carnegie Activities Update

8 February 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Commercial Scale Unit Activities Update

Please find below an announcement released on 8 February 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 27.08% of the entire issued share capital:

"8th February 2011

Commercial Scale Unit Activities Update

·; Onshore hydraulic test rig successfully commissioned

·; Hydraulic module delivered and connected to CETO pump

·; Final testing and delivery of pump-to-mooring attachment

Carnegie Wave Energy Limited (ASX:CWE) is pleased to announce that the hydraulic energy module for its commercial scale demonstration unit has been delivered to Carnegie's Fremantle Wave Energy facility.

The hydraulic module is designed to sit on the sea floor adjacent to the CETO pump and imitate a wave energy plant. The key functions are to regulate the inlet and outlet pressures of the pump and to dissipate the generated energy by way of a heat exchanger.

The hydraulic module is only required for the stand-alone CETO 3 unit and allows an autonomous CETO unit to operate offshore without requiring the installation of piping to shore and onshore generators.

The delivery of the hydraulic module and its connection to the CETO pump allows the onshore test programme to be completed over the coming weeks. The test programme allows the system's performance to be characterised by cycling the pump with a temporary actuator. The test will also reduce risk and uncertainty prior to the subsequent installation and operation at Carnegie's test site off Garden Island in Western Australia.

The test program involves stroking the pump under various loads and velocities using sinusoidal profiles that simulate wave conditions. Instrumentation mounted on the pump and hydraulic module will record the system performance during both onshore and offshore testing. The pump to mooring attachment has also been delivered to Carnegie from French manufacturers Techlam. Techlam specialise in elastomeric components typically used in submarine and offshore applications whose requirements are not dissimilar to those of CETO. Instrumentation required for load measurement has been fitted locally and successfully tested and calibrated. The attachment is now ready for mobilisation for offshore testing.

Carnegie's Perth Wave Energy Project is located offshore Fremantle in the ocean between Garden Island and Five Fathom Bank at a depth of approximately 25 metres. Upon completion, it will be Australia's first commercial scale wave energy project.

The primary aim of the project is to demonstrate the CETO technology in commercial operation. The project site could also be a base for a desalination pilot project utilizing Carnegie's CETO technology.

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 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.

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 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 popular surf breaks

About Carnegie

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

Ends

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