Press Releases

01/12/2003

Update on Improved Offer for Drax

(London – 1 December 2003) International Power plc (“IPR”) notes the announcement released by Drax Holdings Limited (“Drax”) on 1 December 2003 stating that Drax has declined IPR's improved offer. IPR had raised the discount price for the restructured Drax A-2 debt from 71% to 95% of face value.

Philip Cox, Chief Financial Officer of International Power said: “We believe our improved offer was in the interest of all creditors and was, in our view, achievable within the overall timetable.”

“As an industry player and one with considerable experience in running the Drax facility, IPR is well placed to create value for all creditors of Drax. Our original offer still stands and we remain focussed on opportunities to participate in the consolidation of the UK generation sector,” Mr Cox added.

IPR believes that the alternative proposals from Drax, including their proposal that IPR run a tender process, were not commercially attractive, practical or achievable within the agreed timetable.

For further information please contact:

Aarti Singhal
+44 (0)20 7320 8681