Company forsees "predictable earnings and dividends"

AIM-quoted IPSA Group plc, set up to build and operate power stations in Southern Africa, today announced start-up losses for the 15 months to September 30, 2006, but confirmed it was expecting its first revenues during February.

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The losses reflect investment in South Africa's first privately-financed power generation plant at Newcastle, Kwazulu Natal. It is due on stream on February 23.

IPSA also confirmed it is in talks over several other projects in Southern Africa - and said it believed carbon credits under the Kyoto Protocol could become an important additional source of revenue.

The company added it was now well positioned to exploit rapid regional energy demand growth so it could deliver "predictable earnings and shareholder dividends".

IPSA Chairman Stephen Hargrave said: "With our first plant due to commence commercial operation shortly, a number of other projects in the pipeline, and demand for power increasing well beyond the capacity of the current infrastructure to meet it, we look forward to the future with great anticipation".

In addition to the 18MW Newcastle power plant, other anticipated projects identified in the annual statement include:

• 1,600 MW Coega Fast Track Project just outside Port Elizabeth
• 400 MW Elitheni Clean Coal Project near Indwe
• The Prospecton Basin Project in Durban
• Wider regional projects aimed at reducing environmental emissions

IPSA is also listed on Johannesburg's junior AltX market, where the AIM shares are fully exchangeable.

For further information contact:

Stephen Hargrave, Chairman, IPSA Group plc: 020 7793 7676
Peter Earl, CEO, IPSA Group plc: 020 7793 5600
Allan Piper, First City Financial Public Relations: 020 7436 7486
John Llewellyn-Lloyd, Noble & Company Limited: 020 7763 2200