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12 Jun 2001

International Power (Cayman) Limited U.S.$ 350,000,000 2 per cent Senior Convertible Notes Due 2005

International Power plc is pleased to announce that, following its Annual General Meeting held today, a further 2 1/2% of its issued share capital has been released froms hareholder pre-emption rights. Consequently, pursuant to Section 5.1 of the Indenture, dated 24 November 2000, between International Power (Cayman) Limited, International Power plc, and Citibank N.A., as trustee, relating to its 2 per cent senior convertible notes due 2005, the Board of Directors of International Power (Cayman) Limited, has authorized the increase of the conversion amount in respect of each U.S.$1,000 principal amount of notes from U.S.$665.86 to U.S.$1,000 and the decrease of the corresponding cash amount from US.$334.14 to U.S.$0.00. The notes are guaranteed by and convertible into ordinary shares of International Power plc.

Stephen Ramsay - Company Secretary

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