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28 Jan 2004

International Power Mothballs 1,100MW Hays Power Station in Texas

(London – 28 January 2004) International Power announces that it has mothballed its 1,100MW combined cycle gas turbine (CCGT) Hays power station in Texas, for an indefinite period.

Hays, which entered commercial operation less than two years ago, employs modern technology and achieves superior environmental performance. This mothballing reflects the very weak wholesale electricity prices in Texas.

Philip Cox, Chief Executive Officer of International Power said: "Uneconomic wholesale prices in Texas mean that it is not viable to run Hays, despite the fact that it is a modern and efficient power station that operates to the highest environmental standards. We will reinstate Hays only when market conditions improve to a level that provides sound financial returns."

The mothballing of Hays does not affect International Power’s earnings guidance for the financial year to December 2004.

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Notes to editors

International Power plc is a global independent power generation company with interests in over 25 operational power stations that have a combined generation capacity of 16,600 MW (gross). Among the countries where it has facilities in operation or under construction are Australia, the United States, the United Kingdom, the Czech Republic, the UAE, Portugal, Turkey, Malaysia, Pakistan and Thailand. International Power is listed on the London Stock Exchange and the New York Stock Exchange. The ticker symbol on both stock exchanges is "IPR".

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