Press Releases

03/12/2004

Update on TXU Europe Compensation Claim

(London – 3 December 2004) The administrators of TXU Europe have announced the terms of a proposed Company Voluntary Arrangement (“CVA”). The CVA outlines International Power’s compensation claim following the termination of a power offtake contract between Rugeley Power station and TXU Europe in November 2002. The CVA is subject to creditor and court approval, which is expected to take place in Q1 2005.

The administrators of TXU Europe expect to pay Rugeley between £73 million and £84 million, which will be subject to a normal corporation tax charge. Settlement of this claim will be phased with the first receipt (estimated at £50 million) expected in March 2005, with the balance later in 2005 and early 2006.

As previously announced, the majority of this settlement will be used to repay project debt at Rugeley.

For further information please contact:

Investor Contact:
Anna Hirst
+44 (0)20 7320 8788

Media Contact:
Anthony Silverman – Finsbury Group
+44 (0)20 7251 3801

Notes to Editors

International Power owns 100% of Rugeley power station (1,000MW coal fired), located in Staffordshire, England.

International Power plc is a leading independent electricity generating company with 11,953MW (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".