Re: Carnegie CETO 3 Installation Activities Update

24 August 2010

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie CETO 3 Installation Activities Update

Please find below an announcement released on 24 August 2010 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 29.1% of the entire issued share capital:

"CETO 3 Installation Activities Update

§ CETO 3 installation planning and resourcing activities underway

§ Award of offshore installation contract to experienced oil & gas provider

§ CETO unit subsea deployment aids installation complete

Australian Wave Energy developer Carnegie Wave Energy Limited (ASX:CWE) is pleased to announce that the detailed planning and resourcing activities for the deployment of the commercial scale CETO 3 unit have commenced.

Formal commencement of these activities is marked by the award of a significant contract to Perth based AME Pty Ltd ("AME"), an offshore solutions provider, for the engineering, project management and supervision of the CETO 3 installation and retrieval at its wave energy site to the west of Garden Island off Perth in Western Australia.

AME will be responsible for the installation methodology, the design of specific installation aids and selection and management of offshore equipment and service providers. AME is an Australian services and engineering company that specializes in the offshore industry, particularly the offshore oil and gas sector. AME has multi-disciplined engineering services and project management skills and has a deep understanding of the nature of working in, on and below the ocean, in environments ranging from benign through to extreme.

Recent offshore activities include the installation of CETO unit deployment aids, such as a high load capacity pull down point that will assist with securing the CETO Buoyant Actuator ("BA") during final connection to the pump, and mounting points for ancillary equipment. The large "pad eye" located beside the main pile will be utilized to restrain the BA as it is pulled into position. The pile installation including some of these installation aids is pictured below.

Carnegie Wave Energy's Managing Director, Dr Michael Ottaviano, said,

"We are pleased to have secured the services of an experienced offshore solutions provider such as AME as we begin this important phase of the CETO development pathway. One of the benefits of being located in close proximity to offshore oil and gas expertise is leveraging this skill base for our offshore activities."

The engineering and management of the CETO 3 installation and retrieval will cover equipment selection and mobilisation, deployment and retrieval methodology, specialist installation equipment aids and statutory approvals. An important aspect of the engagement is to ensure the engineering and design of the installation and retrieval methods provide flexibility for these activities to be completed using readily available equipment and services as and when required during the offshore demonstration of the full scale CETO 3 system.

The CETO 3 offshore deployment and testing activities are on track to be carried out in 2010 following on from onshore pre-deployment tests. The aim of this testing is to demonstrate the functional performance of the CETO 3 design. The current pile and installation aids have been designed to be utilised for subsequent unit deployment and operation. Carnegie would expect to shortly secure the required vessels to carry out the deployment and retrieval of the CETO 3 unit.

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.

About AME

AME is an Australian services and engineering company that specialises in the offshore industry. Formed in 2002, AME has quickly established itself as an innovative and reliable partner for all owners and operators of offshore assets.

At its core are multi disciplined engineering services and project management skills that understand the nature of working in, on and below the ocean, in environments ranging from benign through to extreme.

AME manages its own team of dedicated managers, engineers, technicians, operators and torage and assembly facilities that can mobilise quickly to suit any offshore task and challenge. With its range of partners globally, AME can provide any depth of resources in any location."

Ends

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