Director's Shareholding

Independent Power Corporation PLC ("IPC"), a company controlled by Peter Earl, Chief Executive Officer of IPSA, has made a preliminary move to increase its liquidity for its own power developments in view of the current financial climate by way of a disposal of Ordinary Shares in IPSA to Mr. Earl.

IPSA, the owner, developer and manager of power plants in South Africa, has received notification from Mr. Earl that he has today acquired 10,000,000 Ordinary Shares in the Company from IPC at a price of 32 pence per share. Following the purchase Mr. Earl has a notifiable interest in 10,010,000 Ordinary Shares in the Company, representing approximately 11.2 per cent of the issued share capital of IPSA.

IPC, which is 89.9 per cent owned by Mr. Earl, no longer has a notifiable interest in the share capital of IPSA.

IPC is a developer and operator of power plants worldwide. Since 1996 it has owned, operated or developed over 4,000 MW of power generation capacity. Today it has some 2,000 MW of thermal and hydro-electric power projects in Indonesia, Holland, the United Kingdom and the former Soviet Union and is finalising management contracts in Kazakhstan, Kenya and the UAE having previously operated gas-fired power generation units in Latin America for a subsidiary of BP.

For further information contact:

Peter Earl, Chief Executive  +44 (0)20 7793 5615

Elizabeth Shaw, COO, IPSA Group PLC:   +44 (0)20 7793 5615

John Llewellyn-Lloyd, Noble & Company Ltd:  +44 (0)20 7763 2200

Sean Lunn, Religare Hichens, Harrison (South Africa) Ltd:  +27 21 950 2711

Allan Piper, Tavistock Communications:  +44 (0)20 7920 3150

Dino Theodorou, PSG Capital (Pty.) Limited:  +27 11 797 8400

Sugitha Naidoo, College Hill (South African PR Advisers):  +27 11 447 3030