Sustainable Energy Announces $500,000 Equity Financing With Doughty Hanson and 10:1 Consolidation of Common Share Capital

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2012) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") is pleased to announce a $500,000 equity financing with Doughty Hanson Technology Ventures and a consolidation (the "Consolidation") of its issued and outstanding common shares ("Common Shares") on the basis of ten old Common Shares for one new Common Share.

The Doughty Hanson investment, which will follow the common share consolidation, will provide additional capital to the Company to shift production to its 3^rd generation PARALEX "STX" inverter for North American and Japanese solar PV markets; and to begin first production of its "AC Battery" for markets in Germany and Japan. (See: News Release: dated Sept 26, 2012 "Sustainable Energy Releases World Class Proprietary "AC Battery" Technology for the Growing Energy Storage Market").

The Consolidation will reduce the number of Common Shares issued and outstanding to 20,915,581 in order to better position the Company for ownership by US and European institutional investors seeking growth opportunities in the high potential decentralized energy storage market which the Company believes will be the main driver of shareholder value over the next two to three years. The proposed Consolidation was approved by shareholders on August 21, 2012, and, subject to the approval of the TSX Venture Exchange ("TSX-V"), the Company's Common Shares will begin trading on a post-consolidation basis on the TSX-V at market open on December 27, 2012 under the same stock symbol "STG".

Following the Consolidation, Doughty Hanson will acquire 50,000 units at a price of $10 per unit, each unit being comprised of one, 8%, five-year First Preferred Shares, Series 13, convertible into Common Shares at a conversion price of $0.40 per share ("Series 13 Share") and 25 five-year Common Share Purchase Warrants ("Warrants") exercisable at a price of $0.50 per share. Mr. Michael Carten, CEO of Sustainable Energy, commented, "We are pleased with the vote of confidence that our financial partner, Doughty Hanson, has shown with this additional $500,000 investment in our Company. The investment comes at a critical inflection point as we move forward with the implementation and commercialization of our growth strategy in Europe, the United States and Japan of our world class proprietary inverter technology. The investment will help us in these new markets for the roll out of our strategy and accelerate marketing in the high growth energy storage sector where we have a clear technology lead. The opportunities we are presented with have positioned us to further prove our value proposition to the global market place."

The PARALEX STX platform is certified for European markets and is currently in testing with CSA to certify products for use in North America and with JET to certify products for use in Japan. The certifications processes are on track and the Company expects to be in production of the STX during Q1, 2013. (See: News Release October dated 25, 2012 "Sustainable Energy on Track to Certify PARALEX "STX" for Multi-Gigawatt Japanese Solar Market").

The Company does not intend to change its corporate name at this time, but will issue new share certificates under a new CUSIP number. Registered shareholders will receive a letter of transmittal from Equity Financial Trust Company, the Company's transfer agent, with information on how to replace their old share certificates with the new share certificates. Brokerage firms will handle the replacement of share certificates on behalf of their shareholders' accounts.

About Doughty Hanson: Doughty Hanson (www.doughtyhanson.com) is one of Europe's most successful independent private equity firms. Since 1985, Doughty Hanson has undertaken more than 118 investments with an aggregate acquisition value in excess of EUR28 billion. Doughty Hanson employs over 50 investment professionals of 15 nationalities, located in offices in London, San Francisco, Frankfurt, Madrid, Milan, Munich, Paris and Stockholm.

About Sustainable Energy:

Sustainable Energy (www.SustainableEnergy.com) designs and manufactures advanced power electronics for distributed smart grid and micro-grid applications. Advanced power electronics are a critical interface between all distributed generation and storage systems devices, ensuring the delivery of high quality alternating current (AC) to the power grid as well as providing utility control over the interconnection and power quality.

Sustainable Energy has designed a simple low cost platform that is software configurable for a wide range of low voltage generation and storage technologies, including solar PV fuel cells and all the emerging battery technologies. The Company's platform is based on breakthroughs in power conversion technology that enable its platform to convert high current/low voltage DC into high quality AC with conversion efficiencies that are materially higher than anything in the market.

Sustainable Energy's growth strategy is to partner strategically with companies that have the products and/or market position to leverage the benefits of the Company's technologies into superior product solutions.

Forward Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the impact of our technology on solar PV and energy storage system performance, completion of, and use of proceeds from, the financing, the timing of the share consolidation, the commercialization of the Company's technology and the timing of completion of the certification process and production. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.

Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.