Press Releases

04/11/2004

International Power Completes Turbogas Acquisition

(London – 4 November 2004) International Power (IPR) has successfully completed the acquisition of a 75% shareholding in the 990 MW Combined Cycle Gas Turbine Turbogas power station in Portugal (“Turbogas”) from RWE Power AG (RWE). As per the terms of the acquisition agreement, the purchase price of €205 million (£137 million), announced on 20 July 2004, has been adjusted to a final cash payment upon closing of €193 million (£129 million) to reflect cash distributions to shareholders during 2004.

In addition, the Company has signed a sale and purchase agreement for a further 5% interest in Turbogas for €13.6 million (£9 million) from Koch Transporttechnik. This acquisition is expected to complete by the end of February 2005.

We reported on 27 October 2004 that Energias De Portugal (EDP), which currently owns 20% of Turbogas, waived its pre?emption rights over the 75% shareholding that IPR has now acquired. IPR has also granted EDP an option to purchase a 20% interest in Turbogas and 26.7% of Portugen (the Operations and Maintenance company) for €55.7 million (£38.7 million) subject to a price adjustment mechanism. This option may be exercised either during the period of nine months from today’s completion, or during a term beginning on 1 January 2008 and ending on 31 December 2009.

For further information please contact:

Media Contact:
Sara Richardson
+44 (0)20 7320 8619

Investor Contact:
Aarti Singhal
+44 (0)20 7320 8681

Notes to Editors

Turbogas

Turbogas commenced operation in 1999 and was co-owned by RWE (75%), EDP (20%) and Koch Transporttechnik (5%). International Power announced an agreement to acquire RWE’s shareholding on 21 July 2004.

To view related announcements please visit http://www.ipplc.com/ipr/news/press/pr2004/.

About International Power

International Power plc is a leading independent electricity generating company with 11,210MW (net) in operation and 1,649MW (net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, the Czech Republic, the UAE, Oman, Saudi Arabia, Portugal, Turkey, Malaysia, Pakistan and Thailand. International Power was listed on the London Stock Exchange and the New York Stock Exchange (as ADR’s), on 2 October 2000. The ticker symbol on both stock exchanges is "IPR".