S.D.E Company Needs Governmental Support for the Implementation of its Sea Wave Power Project in Sri Lanka

TEL AVIV, Israel, March 16, 2010 - The S.D.E Company has gone a long way in order to construct
its sea wave power plants in Sri Lanka.

SDE and the Government of Sri Lanka have been in contact since
2006, when Mr. Ovadia, the managing director of the S.D.E Company, conducted
several meetings in Israel with Hon. Prime Minister Ratnasiri Wickramanayaka,
Mr. Mahinda Bandusena (secretary to the Prime Minister), Mr. M M C Ferdinando
(Secretary of the Ministry of Power & Energy) and Mr. G. Wijayasiri
(Consultant to the prime minister). All have expressed their interest in and
feel the need for the sea wave power projects in Sri Lanka.

Such need is especially caused by the fact that Sri Lanka's
economy grew at a relatively rapid rate during the past few years - in the
range of 7-8% a year- and that growth resulted in a correlated growth in the
energy demand.

The island's population of 21.1 million requires large amounts
of electricity; for example, in 2007, the per capita gross domestic product
(GDP) in purchasing power parity (PPP) basis was US$ 4,265.

Due to this need, Mr. Ovadia visited Sri Lanka twice and
decided to establish a company in Sri Lanka, under the name "S.D.E Sri Lanka
Pvt".

The Company has submitted a project proposal to the Ceylon
Electricity Board for their evaluation and obtained the technical evaluation
approval from Ceylon's Power Purchasing Department. In the same time, "S.D.E
Sri Lanka Pvt" also obtained a letter of intent to proceed towards the
desired step of signing the Power Purchase Agreement, and received an
approval from the Sri Lankan Board of Investment.

The last stage was to obtain the environmental approval from
the Coast Conservation Department. "S.D.E Sri Lanka Pvt" had applied for such
approval by presenting a detailed overview of the project to the Coast
Conservation department Committee, Board of Investment staff and the
Environmental Authority.

Unfortunately, since then S.D.E's sea wave power project had
stopped its progress in Sri Lanka.

Recently, S.D.E's officials, Mr. Shmuel Ovadia and Ms. Inna
Braverman, international marketing managers, have conducted several meetings
with the Ambassador of Sri Lanka in Israel, Mr. W.M. Senevirathna. The
Ambassador had also expressed his support for the project and mentioned the
great shortage of electricity in Sri Lanka and the damages caused by this to
the country's economy and population. Up to this date, however, the project
is still not progressing.

As a result, S.D.E has begun to search for local partners in
Sri Lanka, in the hope that such partners will be able to assist the progress
of S.D.E's sea wave power projects in the island.

Officials from S.D.E mentioned that "It is both disappointing
and surprising that a country in such a great need of electricity does not
seem to ease the process of introducing new green energy production
technologies to the country's energy market." This situation is opposed to
other countries, in which S.D.E has already obtained long-term Power Purchase
Agreements, and begun its construction works.

The technology of producing electricity from sea waves is innovative and
a leading method worldwide. Pollution and global warming as a result of fuel
usage have taught the world that the best resource to create electricity is
the sea. The system has the highest efficiency in the world and is offered
for a very attractive price. SDE has an international patent and also patents
pending. To this day, the company has built 8 models that have been
successful, the last of which has produced 40kW/h. The models were financed,
checked, and approved by the Israeli Government.

    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