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Capacity Expansion planned to help ease South African energy crisis

AIM-quoted IPSA Group PLC intends to install extra capacity at two of its planned electricity generation projects in South Africa, to help meet the country's desperate need for power.

The two projects are the Elitheni Clean Coal Project near Port Elizabeth, and a combined heat and power plant planned to provide electricity to da Gama Textiles at East London, one of the largest textile facilities in the southern hemisphere.

IPSA Chief Executive Peter Earl said: "Last week saw South Africa break all records for the peak demand for electricity, with national power cuts yet again from shortages of generation capacity. IPSA intends to bring its new capacity on stream as fast as possible."

Following investment in recent months by the owners of the Elitheni coal mine to prove up the coal deposits, IPSA believes that there is sufficient commercial availability of coal to increase the Elitheni Clean Coal Project from 400 MW to 500 MW.

The company also intends to increase the size of its CHP project at da Gama Textiles from 7 MW to 80 MW.

For further information please contact:

Peter Earl, CEO, IPSA Group plc 020 7793 7676

Mark Froggatt, Noble & Company Limited 020 7763 2200

Sean Lunn, Hichens, Harrison (South Africa) Ltd +2721 950 2711

Allan Piper, First City Financial 07736 064982 / 020 7436 7486