Press Releases

31/08/2005

International Power Sells Interest in 300 MW Valley Power plant to Snowy Hydro Ltd

(London – 31 August 2005) International Power and Mitsui & Co, Ltd (IPM) together with Contact Energy have signed an agreement to sell the 300 MW Valley Power peaking plant in Victoria, Australia, to Snowy Hydro Ltd for an enterprise value of A$243 million (£100 million).

IPM acquired a 60% equity interest in Valley Power as part of the Edison Mission Energy acquisition in December 2004, and Contact Energy owned the remaining 40%. IPM has divested its interest in Valley Power as per an agreement with the Australian Competition and Consumer Commission (ACCC) reached at the time of the Edison Mission Energy acquisition.

The sale of Valley Power is expected to be completed towards the end of September 2005.

For further information please contact:

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

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

Notes to Editors:

International Power’s net ownership (42%) in Valley Power equated to 126 MW.

International Power plc is a leading independent electricity generating company with 16,372 MW (net) in operation and 1,706 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, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Malaysia, Pakistan, Puerto Rico 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".