The Manager of the Larnaca Marina in Cyprus, Had Expressed His Personal Intentions to Promote the Installation of Renewable Energy Systems in the Marina

Government Officials From Cyprus Have Expressed Tremendous Interest in Implementing S.D.E's Sea Wave Power Technology in the Region, S.D.E is Currently in Negotiations With Several Local Companies Regarding Establishing a Joint Venture in the Area

TEL AVIV, Israel, December 29 - S.D.E has been in contact with the Government of Cyprus since
the year of 2006, when Mr. Christodoulos Pharconides from the Cyprus
Institute of Energy had informed Mr. Shmuel Ovadia that: "The Cyprus
Institute of Energy is willing to assist you in your pursuit to establish the
first wave energy electricity conversion plan in Cyprus" and had suggested
the Marina in Larnaca as a potential location for S.D.E's sea wave power
plants.

Since then, S.D.E's officials have also conducted discussions
with the Manager of the Larnaca Marina, Mr. Glavkos Kariolou that had
expressed his personal intentions (with a letter to the Ministry of Energy of
Cyprus), to promote the installation of renewable energy systems on the
Marina. Mr. Glavkos Kariolou also said that the length of the available
breakwater is 340-400 meters and that the height of the waves in this Marina
is suitable for the height requirements of S.D.E's unique technology.

As a result, Mr. S. Kassinis, the Director of the Energy
Service in Cyprus, from the Ministry of Commerce, Industry and Tourism, has
invited the officials from S.D.E Company to present the sea wave power system
to the director of the Energy Service of the Ministry of Commerce Industry
and Tourism, Cyprus Regulatory Authority and the Electricity Authority.

Nowadays, S.D.E's officials conducted a number of meetings in
Israel, with several large-scale companies from Cyprus, with the joint
objective to establish a joint venture in Cyprus. This joint venture will be
responsible for promoting, building and operating the sea wave power plants,
in the whole area of Cyprus, on an exclusive base.

The demand for electricity in Cyprus continues to rise. The
Cyprus Energy Regulatory Authority (CERA) and the Transmission System
Operator (TSO), have made estimates of future demand up to 2015. Their
projections are based on an analysis of maximum demand on an hourly basis and
at different times of the year. According to their findings, gross demand is
expected to increase from 4,910 MWh in 2007 to 7,004 MWh in 2015, an average
increase of 5.2% per annum.

The potential contributions of Renewable Energy Sources (RES)
have already been defined by the Cyprus Energy Service. These figures are
consistent with the report that Cyprus has submitted to the EC on the
implementation of the Directive on the Promotion of Electricity from
Renewable Energy Sources (2001/77/EC) up to 2010, indicates a target of 6%
for the contribution of RES to electricity demand in 2010.

As part of its' Mission to The energy Ministry of Cyprus have
investigated the possibility of installing wind turbines in the Southern
coast of Cyprus (near shore applications). However, Initial studies showed
that due to the high depth of the sea at relatively short distance from the
shore, more that 30m depth at a distance of 300 m from the shore, the cost
of the installation of the wind turbines is expected to be very high, to
the extend that the wind potential which exists at those areas will not be
enough to compensate the investment. Solar Energy also proved to be not
economic.

In addition, the potential for small hydro plants in Cyprus is
very limited, especially with the water shortages over the last years, due to
the global warming. The suitable sites are estimated as being adequate for a
maximum of about 1MW installed capacity.

That is the reason that S.D.E's sea wave power plants are the
perfect renewable solution for Cyprus's Energy shortage, being sold in the
most cost-efficient price per KW.

Moreover, it should be noted that the issue of desalination is
now top priority of the Government of Cyprus, in light of the difficult
situation of the island water. Until few years ago, the water supply was
based mainly on the pumping of groundwater and storing flood water surface
dams and reservoirs. But due to lack of rainfall are almost completely
depleted underground reservoirs. Cyprus, found itself in the most severe
crisis in water supply.

The above written, is just another reason for implementing
S.D.E's unique technology in Cyprus. The main problem of desalination is that
it requires large amounts of electricity. However, due to S.D.E's ability to
produce electricity from sea waves at a very cheap price, the sea wave power
plants will solve two main problems in Cyprus: the shortage of electricity,
as well as the water shortage. All achieved by building sea wave power plants
combined with desalination.

    For further details Please contact Mrs. 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 Mrs. 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