Renewable Energy Holdings plc Signs MOU regarding Wave Farms in Bermuda

("REH" or "the Company")

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies, is pleased to announce it has entered into a Memorandum of Understanding ("MOU") with Triton Renewable Energy Limited ("Triton"), based in Bermuda.

Under the terms of the MOU, REH and Triton will negotiate and agree the terms of a joint venture to build and operate wave farms in Bermuda, pending regulatory approvals, using REH's proprietary CETO wave power technology, with an initial test site of 2MW to be developed and subsequently a grid connected 20MW installation. It is intended that Triton provides services to facilitate the development of the wave farms and REH grants the rights to use its CETO technology and provides engineering support during the construction and on-going operation of the wave farms. Negotiations are expected to be concluded by the end of 2008.

Once operational the joint venture would ideally enter into a power purchase agreement with the local Bermuda electric utility company, which is seeking to diversify its energy portfolio. It is intended that the joint venture would supply Bermuda with electricity, and the option of desalinated water.

REH's CETO technology is in the final stages of commercial testing, with the commercial roll-out expected to begin in 2009. CETO technology distinguishes itself from other wave energy devices by resting out of sight on the ocean floor and generating electricity on-shore. 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 deliver sea water at pressure ashore via a pipeline. The high-pressure seawater can then be used to drive hydro turbines, generating zero-emission electricity. In addition, the high pressure sea water can be used to supply a reverse osmosis desalination plant, replacing greenhouse gas emitting pumps usually required for such plants.

REH has a collaboration Agreement with EDF EN in which REH and EDF EN have agreed to Joint Venture CETO Developments in the Northern Hemisphere and Isle de la Reunion in the Southern Hemisphere. This MOU when negotiated as a Joint Venture with Triton, will be assigned to CETO Development Company Limited, the REH/EDF EN Joint Venture.

Mike Proffitt, Chief Executive Officer of REH, commented:

"It is currently very expensive to generate electricity in an island environment, due to the high cost of imported fuel oil. CETO provides an economic and clean solution to this problem. Bermuda has an excellent wave regime and there are several sites which we believe would be suitable for a CETO wave farm. There is also the added advantage of being able to provide desalinated water with the CETO technology, which is another benefit of deploying our technology on islands."

For further information please contact:

Mike Proffitt, Chief Executive
Renewable Energy Holdings plc
Tel: 01624 641199

Richard Swindells / Andrew Craig
Ambrian Partners - Nominated Adviser & broker to REH
Tel: 020 7634 7405

Samantha Robbins / Paul Dulieu
[email protected]
Redleaf Communications
Tel: 020 7822 0200

Notes to Editors

About Renewable Energy Holdings plc

Renewable Energy Holdings ("REH") is an international company established to be an investor in and operator of both proven and innovative renewable energy technologies.

REH owns two operational wind farm sites in Germany, Kesfeld (32.5MW) and Kirf (8MW). In addition, REH is at various stages of development of further wind farm sites in Poland and Wales.

REH owns a methane Landfill Gas Project in Powys, Wales which is at an early stage of gas collection, currently producing at 1MW and which is expected to increase as the landfill matures.

CETO is REH's innovative wave power technology. It is the first wave power converter to sit on the seabed, where it is invisible, safe from storms and ocean forces, and self contained. Unlike other wave energy technologies that require undersea grids and costly marine qualified plant, CETO requires only a small diameter pipe to carry high pressure seawater ashore to either a turbine to produce electricity, or to a reverse osmosis filter to produce fresh water. CETO is currently deployed off Fremantle, Western Australia undergoing commercial testing.

The Directors and executive team of REH have extensive experience in both the conventional and renewable energy sectors, both in the UK and overseas, and through their experience have built a broad international network of relationships with individuals, companies, governments and lobby groups.

The Company was incorporated in the Isle of Man on 8 October 2004 and listed on the London Stock Exchange's AIM Market in February 2005.

Further information can be found at www.reh-plc.com