Press Releases

19/09/2006

International Power raises non-recourse Finance at Rugeley Power Station, UK

(London – 19 September 2006) International Power today announces that it has raised a £485 million non-recourse financing package at its 1,050MW coal fired Rugeley Power Station in the UK.

This is an attractive financing package for Rugeley, which previously had no associated debt. £145m of this financing will be used for the installation of Flue Gas Desulphurisation equipment (FGD) and other capital projects to both enhance the operational performance at Rugeley and significantly extend the life of the plant. The remainder of this financing will be used for credit support, working capital requirements, and for general corporate purposes.

The FGD equipment is expected to be operational in the second half of 2008.

The mandated lead arrangers for this financing are Bayerische Hypo-und Vereinsbank AG, Calyon, Commonwealth Bank of Australia, ING Bank N.V., Mizuho Corporate Bank, Ltd and The Royal Bank of Scotland plc.

For further information please contact:

Investor Contact:	Media Contact:
Aarti Singhal	Andrew Mitchell
Telephone: +44 (0)79 8949 2447	+44 (0)20 7251 3801

Notes to Editors:

International Power has appointed Lentjes GmbH, a leading, international technology group, as the Engineering Procurement and Construction contractor for the installation of FGD at Rugeley.

International Power plc is a leading independent electricity generating company with 17,884 MW (net) in operation and 1,119 MW (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, Italy, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Malaysia, Pakistan, Puerto Rico and Thailand. International Power is listed on the London Stock Exchange and the New York Stock Exchange (as ADRs). The ticker symbol on both stock exchanges is "IPR".