Press Releases

31/10/2000

Pakistan's Water and Power Development Authority and International Power PLC Announce KOT ADDU Agreement

London, England (October 31, 2000) -- On October 25, 2000 International Power plc and Pakistan's Water and Power Development Authority (WAPDA) announced agreement on a Memorandum of Understanding (MOU) for a mutually acceptable new approach to the management and operation of the Kot Addu Power Company (KAPCO). The MOU was negotiated and signed by Lt. General Zulfiqar Ali Khan, Chairman of WAPDA, and Peter Giller, Chief Executive Officer of International Power.

International Power plc, one of the leading independent power producers in Pakistan, owns a 36 per cent stake in KAPCO, the owner of the 1,600 megawatt Kot Addu power station in Punjab province. International Power's partner in KAPCO is WAPDA with a 64% share. For several years, KAPCO and International Power have been involved in disputes with the government of Pakistan and WAPDA that are having a material adverse impact on the profitability of KAPCO and the value of International Power's interest in KAPCO.

Peter Giller, International Power's CEO said, "the agreement resolves longstanding differences between International Power and WAPDA over contractual arrangements for the Kot Addu power station." Giller added, "the agreement was negotiated in good faith, and gives both parties a clear framework for addressing KAPCO governance issues and certain technical and operational issues at the power station."

International Power is one of the world's largest independent electric generating companies with 6,400 megawatts (net) in operation, 4,500 MW (net) under construction and approximately 8,000 MW (net) in advanced development. Among the countries where International Power has operating facilities are Australia, the Czech Republic, Malaysia, Pakistan, Portugal, Spain, Turkey, the United States and the United Kingdom. International Power was created from the demerger of National Power PLC, and its shares began trading independently on the London Stock Exchange and as ADRs on the New York Stock Exchange on October 2, 2000. The ticker symbol on both stock exchanges is "IPR".

Media contact:	Aarti Singhal
	0-207-320-8681

Investor contact:	Grant Jones
	0-207-320-8619