Re: Carnegie Commercial Scale Results Verified

9 September 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Commercial Scale Results Independently Verified

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 9 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.

"9th September 2011

Commercial Scale Results Independently Verified

·; CETO 3 performance results independently verified

·; Peak rated capacity of CETO 3 unit confirmed as 200kW

·; Sustained pressures in excess of that required for desalination

·; Environmental results to follow

Wave energy developer Carnegie Wave Energy (ASX: CWE) is pleased to advise that independent engineering firm, Frazer-Nash, has verified the positive results of its CETO 3 device. The results were unveiled today by Carnegie's Technology Development Manager, Jonathan Fievez, at the European Wave and Tidal Energy Conference in Southampton, England.

Carnegie had previously advised that a competitive tender process for the verification work was won by Frazer-Nash who is one of the UK's largest providers of systems and engineering technology specialising in the provision of independent and impartial advice to the defence, nuclear, power and energy, civil aerospace, rail, marine, petrochemical and industrial sectors.

Frazer-Nash has verified that the CETO 3 unit has a peak rated hydraulic power capacity of of 203 kW, with an expected tolerance range of +25% and - 40%. This corresponds with the peak power output that the CETO 3 unit would deliver in an ocean environment such as the south west coast of Australia. In an Atlantic wave environment, such as the west coast of Ireland, Frazer-Nash has also confirmed a peak rated capacity of 182kW within the same tolerance range.

Carnegie's Managing Director Dr Michael Ottaviano said,

"The primary aim of the CETO 3 project was to confirm the peak unit capacity. We are pleased to have successfully demonstrated the power generating potential of CETO 3 and to have had these results independently verified. It's even more pleasing when you consider this is our first commercial scale unit and we still have significant opportunities to optimise the CETO system at commercial scale. This gives us enormous confidence as we look forward to projects and to subsequent technology generations."

Frazer-Nash also verified that the peak measured capacity during the inocean CETO 3 test campaign was 78kW and delivered sustained pressures of 77bar which is more than that required for sea water reverse osmosis desalination.

Frazer-Nash also verified the hydrodynamic and hydraulic models that underpin the CETO 3 design. This provides Carnegie with the confidence required to continue with the design of the first grid-connected CETO commercial demonstration project.

The CETO 3 unit and hydraulic energy management system has been retrieved and inspected. No wear was found on any of the key operational surfaces and the pump exhibited no measurable leakage. Some bolts loosened and detached from the third party designed mooring to pump attachment and the design has been modified by the supplier ahead of any subsequent deployments.

Throughout the campaign Carnegie collected a range of data in relation to the environmental impact of the CETO 3 unit. The dataset includes video and audio sampling which is currently being analysed and will be available for release shortly.

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 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 and beachgoers

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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