Half Yearly Report

Unaudited Results for the 6 month period ended 30 September 2011

IPSA, the AIM and Altx dual listed independent power plant developer with operations in southern Africa, today announces its unaudited interim results for the 6 month period ended 30 September 2011.

Highlights:

• Revenue of £1.9m (2010 - £0.7m) comprising electricity sales of £1.7m (2010 - £0.7m) and steam sales of £0.2m (2010 - nil)
• Group after tax loss of £2.6m (2010 - £0.4m loss)
• Production of electricity under the MTPPP contract and, since July 2011, re-commencement of steam sales under a temporary  contract, has generated a gross margin (revenue less cost of gas consumed) of £0.5m (2010 - £0.1m)
• As announced on 2 December 2011, new contracts for the sale of the 4 turbines have been exchanged at a gross price of US$66.0m

Commenting, Richard Linnell, Chairman of IPSA, said:

"Following the significant delays before recommencing production of electricity in March 2011, which was due to the protracted negotiations in finalizing the MTPPP contract, it is pleasing to report that the plant in South Africa is now fully operational and, although output is still below full capacity, the plant is cash generative. We expect to add additional capacity by mid 2012 which we believe will make the plant profitable, covering both operating costs and depreciation, and will maximize revenues from our existing MTPPP contract.

It is also most encouraging that the lengthy negotiations on the sale of the turbines have resulted in the exchange of new contracts, approved by our key creditors, on 30 November 2011. However, the working capital position will remain extremely tight until the sales of the four Turbines are completed.

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For further information contact:

Phil Metcalf, CEO, Elizabeth Shaw, COO,

IPSA Group PLC

+44 (0)20 7793 5615

John Llewellyn-Lloyd, Harry Stockdale

Execution Noble & Company Ltd

+44 (0)20 7456 9191

Harry Ansell, James Joyce

W H Ireland Ltd

+44 (0)20 7220 1666

Riaan van Heerden

PSG Capital (Pty.) Ltd,

+27 (0)21 887 9602