Solar Energy Limited and D2Fusion Announce Major Strides on the Path to Fusion Energy.

At a Time of Deepening Concern over Fuel Costs, Energy Security and CO2-Driven Global Warming, Solar Energy Limited (SLRE.ob) and D2Fusion, Inc. Announce Major Advances in the Development of Clean Solid-State Fusion Heat Sources

SAN FRANCISCO -- Last week D2Fusion's 2006 year-end scientific and engineering progress review brought together its Silicon Valley and Los Alamos nuclear physics teams to report on recent breakthroughs in the quantification of their solid state fusion effects, synchronize experiment replication schedules, and coordinate engineering plans for 2007. D2Fusion is a subsidiary of the publicly traded company Solar Energy Limited (OTCBB:SLRE).

During the last year, the company developed and installed in both its headquarters' and Los Alamos facilities, innovative and highly sensitive mass spectrometer apparatuses, which are now in daily use allowing the observation and quantification of helium isotope production in near real time. These detection systems readily discriminate and quantify helium (4He) ranging from a few parts per billion to hundreds of parts per million accumulating in methodology trials lasting from weeks to months.

According to D2Fusion CEO Russ George, "Helium is the definitive 'nuclear ash' proving the occurrence of deuterium nuclei fusion in highly energetic reactions. While these are essentially the same nuclear reactions that power the sun and stars, our solid state form of fusion occurs at ordinary temperatures (0x-600x C) and, most importantly, without the emission of dangerous radiation. The fuel is 'heavy hydrogen' or deuterium, and our recent work indicates obtainable energy densities ranging from a few tenths of a watt to a few tens of watts per cubic centimeter."

Former EPRI (Electric Power Research Institute) nuclear power project manager and D2Fusion Chief Scientist, Dr. Tom Passell describes the firm's R&D approach, "We believe in the virtues of intramural competition and cooperation at every level of this work. We even pit different fusion methodologies against each other in our labs and use the clues derived to accelerate each other's progress. In the end, this is a totally synergistic enterprise and no matter which technique proves market-ready first next year, it will be greeted as a historic victory for all."

Both facilities are now completing integration of their reaction, measurement, and calibration systems to allow reciprocally coordinated replication runs, and plan to install a third interoperable sister system in a leading European science institute in the next several months. In 2007 all three labs will focus upon scaling up the reaction to commercially significant output levels and developing heating module prototypes for domestic and industrial use.

A number of statements in this press release may be considered to be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, and the ability to secure additional sources of financing. The actual results Solar Energy Limited may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.