Ann: Capital Raise , page-34

Steamairship,

It should be kept in mind that the scores of different wave power convertors that have some physical existence at present are all really prototypes so that being 'beaten to the post' may not mean anything. They are all going through steps Mark I, Mark II, Mark III, etc. Each device manufacturer is trying to make out of course that theirs is going to conquer the world. All are looking for financial backers. None of them are prepared to discuss the efficiencies of their device nor the cost of production. I suspect they wont have 'failures', just withdrawals for maintenance or for final modifications. You know how it is!

Nevertheless, I think CWE does need to get its skates on to complete the CETO III test. It is only after this that CWE can say that we are fully fledged and ready for market. EDF has its hands largely tied until this happens. Does EDF back any other wave project as well? A large company of that order will likely have several irons in the fire. We need to ensure that CETO will be the final contender. It may have been the recognition of this urgency that required CWE to do a rapid cap raising. After the REDP fiasco I expected a raising but then I relaxed on the basis of the AGM promises and didn't sell.

I don't want to raise hopes unnecessarily but I can't help wondering what formal feed back CWE received on their REDP application. Getting this would be critical in terms of an independent group (albeit government sponsored) assessing a variety of wave power projects and ranking CETO within that. If lack of CETO III was the weakness then some support in a different guise would still be possible. This means there are several good reasons for speed. I could imagine some directors pressing this point firmly.

Juke