SDE has Finalized the Construction of the First Sea Wave Power Plant in Jaffa Port, Israel

TEL AVIV, Israel, July 27, 2010 - SDE has finalized the construction of the first large-scale
sea wave power plant, in Jaffa Port in Israel. In the past, the sea wave
energy conversion method has received support from the Chief Scientist of
Israel, Ministry of Industry and Trade, approval no. 23425, which had enabled
S.D.E. to build eight (8) sea wave power plant models. The last of which, has
operated successfully for a period of two years, producing 40KWh.

The new sea wave power plant, which is actually the 9th plant
built by SDE company, has been finalized and operated in the recent days,
proving itself as a better and improved version of the previous models. It
can produce 60 KWh (with only one buoys), it is a full automatic model, and
only 10% of the whole system is in the waters, which minimizes the risk to
the system in cases of storms and other natural disasters.

The 60KWh sea wave power plant is an initial stage of a total
construction plan of 50MW on the breakwater of Jaffa Port. Jaffa's breakwater
is 1000 meters long and the construction of SDE's sea wave power plant, will
provide cost-efficient renewable energy source to the port, as well as
prevent the erosion of the breakwater that is usually caused by high waves.
In addition, Israel's Electric utility is willing to purchase the electricity
from sea waves at a very attractive price of 12 cents per KW.

Due to the success of the new model, in the next moths, SDE
Company will be hosting many business delegations from different parts of the
world as well as Energy Ministries, Governors and officials from the Electric
companies, which are interested in viewing the system in operation and
finalizing cooperation with SDE Company.

The International Marketing and business development Manager
of the group of SDE companies, Ms. Inna Braverman, had stated that: "there
was an intensive interest in SDE's unique technology even before SDE had an
operational model; however, now, when SDE has an operational model, I believe
that the development and growth of the company will be unstoppable".

SDE's officials had expressed their gratitude to the
management of Jaffa Port, and especially to Mr. Ran Wolf, the Managing
Director of the Port, which was the first Port in Israel that was open and
supportive to the idea of a new renewable energy source, and has supported
SDE company in its efforts to prove the efficiency of its' technology. SDE
Company hopes that other ports, such as the Port of Haifa, Herzeliyah, Ashdod
and others would also support the implementation of SDE's technology on their
breakwaters and other suitable locations.

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 largest world resource to
create electricity is sea waves. The system has the highest efficiency in the
world by the new method and is offered for a very attractive price. SDE had
international patent and also patents pending.

The erection cost of a 1MW S.D.E's power station starts from
$650,000 while a comparable station costs $1,500,000 from coal, $900,000 from
natural gas, $3,000,000 from solar sources, and $1,500,000 from wind. In
addition, S.D.E's production cost per KW is only 2 cents, compared to 3 cents
from coal, 3.5 cents from natural gas, 12 cents from solar energy, and 3.6
cents from wind.

The system that S.D.E has developed is able to supply 500 times more
than the electricity requirements of the whole world population.

    For further details Please contact:
    Ms. Inna Braverman
    International Marketing Manager of S.D.E

    Or

    Mr. Shmuel Ovadia
    CEO
    Phone number: +972(0)3-7397107
    Fax Number:   +972(0)3-6319239
    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(0)3-7397107, Fax Number: +972(0)3-6319239, E-mail Address: abe at shani.net