Solar Energy Ltd. Announces Corporate Restructuring

Business Wire, July 12, 2001

Business Editors

LOS ALAMOS, N.M.--(BUSINESS WIRE)--July 12, 2001

Solar Energy Ltd. (OTCBB:XSEL) today announced that several steps have been taken to make the company more attractive to the investment community.

The company has been seeking to raise funds to complete the design and construction of full scale working prototypes of its three projects: H20NOW, MECH and Solarec. Due to the low market price of the company's stock it has been impossible to interest serious investors in making an equity investment in the company.

[pilcrow (paragraph sign)] In an effort to make the company a more viable investment opportunity, certain existing shareholders and creditors of the company have agreed to convert their loans or payables to stock in cancellation of this debt. As a result of this debt conversion the company will have minimal liabilities. In addition, the board of directors has authorized a stock split of the company's common stock.

The directors of Solar Energy authorized a 50-to-one (1 for 50) reverse split of its common stock, provided that no shareholder owning 500 or more shares shall be so reversed below 500 shares, and no shareholder owning less than 500 shares shall be reversed. The split will apply to shares owned of record at the close of business on July 19, 2001. The effective date for the split is July 20, 2001.

A mandatory share exchange will be required to effect this forward split, therefore shareholders of the record date will be required to surrender their shares to the company's transfer agent for re-issuance. The split will be payable on surrender of shares. Pursuant to the mandatory share exchange, the symbol of Solar Energy has been changed to "SLRE."

About Solar Energy's Projects

The first of these projects is called Solarec, short for solar reduction of CO2. This wholly owned patented project of Renewable Energy Corp. (RECO) uses only solar energy to extract carbon dioxide from the atmosphere in a process that makes commercial-grade gasoline and electricity as a bi-product.

The stated aim is to make electricity at less than 5(cent)/kW and gasoline at less than $1/gal -- while reducing carbon dioxide content in the atmosphere. This project is of major significance in light of today's global energy and pollution problems.

[pilcrow (paragraph sign)] The second project is called H20NOW which is also a wholly owned patent-pending project. This project addresses what is arguably the globe's number one problem -- the production of water that is not only clean enough to drink, but inexpensive enough to be used for agricultural purposes.

The company's goal is to produce this water at a cost of less than 50(cent)/1,000 gals (less than 13(cent)/m3). H20NOW uses only solar energy to produce potable water from seawater.

The last project is called MECH (short for "Motor, Expander, Compressor, Hydraulics"). This patent-pending concept is for the development of an engine (or compressor) that, at one-third the size and weight of a conventional internal combustion engine, can produce the same power, yet have one-third more efficiency.

For additional information, contact: Jena Minnick -- 949/248-9561

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. (Such factors include, among others, the risk factors contained in the company's filings with the Securities and Exchange Commission). In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. The company will remain dependent upon future financing for its growth and development, and for it to successfully implement its business plan. No statement contained herein should be construed as indicating that such financing is or will be available, and if available, will be on terms favorable to the company. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.