Mr. Fredrik F. Gottelib (Chairman of the Bahamas Electricity Corporation): "I am Given to Understand That S.D.E Company is one of the Leaders in the Technology and Construction of Ocean Wave Producing Stations"

TEL AVIV, Israel, January 20 - S.D.E has been in contact with Governmental officials from the
Bahamas for a long period of time. The immediate past chairman of the Bahamas
Electricity Corporation Mr. Frederik F. Gottlieb has told S.D.E that: "the
Bahamas Electricity Corporation is currently exploring viable/suitable
alternative (renewable) energy generating systems, for the commonwealth of
the Bahamas." Therefore, "The Bahamas Electricity Corporation is interested
in entering into discussions with representatives of S.D.E Company with a
view to determining the viability/suitability of constructing an ocean wave
power producing plan/station in the Bahamas." He has added that he had
written this specifically to S.D.E due to the fact that he was given to
understand that S.D.E Company is "one of the leaders in the technology and
construction of ocean wave power producing stations".

The Bahamas Electricity Corporation has been inviting
proposals for renewable energy power purchase agreements in several
technologies. Although there has been lots of talk before, this marks a
dramatic policy shift.

This shift is driven by two factors. The first one is the
understanding that escalating oil prices and supply problems could disrupt
the Bahamian economy and the second are the International concerns about
pollution and climate change.

Another sign for this policy shift is the new
government-appointed committee, headed by Philip Weech, the chairman of the
BEST Commission, which is looking into changing the legal and financial
framework to promote investment in the renewable energy field.

The pending Request for Proposals follows the appointment of a
special committee at BEC to research the most viable renewable energy
technologies for the Bahamas at utility scale.

The special committee has identified the most promising
alternative methods to produce electricity for the Bahamas and said that "…
this may come sooner rather than later given the escalating cost of fuel. Our
challenge is to get up and running to prepare for that point. The committee
has put a lot of effort into this - we are not just dabbling. It is a part of
this government's strategy and it is being actively pursued."

BEC supplies 85 per cent of all Bahamian consumers, with an installed
capacity of about 400 megawatts and Grand Bahama Power Company has an
installed capacity of about 140 megawatts. As a result, the cost of imported
oil to generate electricity in the Bahamas is now around $800 million a year.

The committee's preliminary recommendations also called for
BEC to explore wave technology.

Oil prices are expected to remain high and geopolitical issues
are likely to cause supply disruptions, so it is more urgent than ever for
Small Island developing states like the Bahamas to begin shifting their
energy economy away from fossil fuels.

The plain fact is that within 20 years The Bahamas may be
unable to afford to buy the oil to run their economy. The Bahamas is
currently spending almost one sixth of their GDP on fuel imports, and that
price tag will only go up.

The correlation of wave motion to wind activity will produce the same
efficiency in the utility of both systems, and with this in mind
the implementation of S.D.E's sea wave power plants throughout the
Bahamas offers the perfect solution for meeting future energy needs, while
ensuring that valuable foreign reserves will not wasted on inefficient fossil
powered plants.

As opposed to erratic changes in escalating oil prices,
S.D.E's sea-wave power technology remains the most cost-efficient technology,
with a construction cost of only 650,000$ USD per 1MW, and electricity
production cost of only 2 cents per KW. In addition, the sea wave power
plants are a non-polluting green energy source, that are very much suitable
for the Bahamas, due to the frequency of wave activity and the average height
of the waves in the region.

S.D.E wishes therefore to establish a presence in the Bahamas
partnering with the Bahamas Government to build sea wave power plants in the
region, providing stable costs for the future, and green energy efficient
solutions for the Bahamian people.

For further details Please contact Ms. Inna Braverman,
International Marketing Manager of S.D.E, or Mr. Shmuel Ovadia, CEO.

Phone number: +972-3-7397107

Fax Number:+972-6319239

E-mail Address: abe@shani.net

For further details Please contact Ms. Inna Braverman, International Marketing Manager of S.D.E, or Mr. Shmuel Ovadia, CEO. Phone number: +972-3-7397107, Fax Number: +972-6319239, E-mail Address: abe at shani.net