Drax - Restructuring Update

RNS Number:6079S
International Power PLC
28 November 2003


                    Drax Holdings - Restructuring Update

(London - 28 November 2003) Drax Holdings Limited ("Drax") and International
Power ("IPR") announce that they are in discussions following an offer by IPR to
increase the discount price for the A-2 debt from 71% to 95% of face value, as
part of the cash out offer made available in connection with the schemes of
arrangement posted to senior creditors of Drax on 17 November 2003.  IPR's total
funding commitment in respect of the A-2, A-3 and B debt amounts remains at #130
million, which for IPR would represent a maximum equity holding of 24% in Drax.
The increased discount price for the A-2 debt offered by IPR reflects an
improved power price environment.

Both parties remain committed to completing the restructuring within the
existing overall timetable.

The Board of Directors of Drax is considering whether the offer is in the
interests of the company and its creditors as a whole. There can be no assurance
that any amendments will be made to the terms of the existing cash out offer.  A
further announcement will be made as soon as practicable.


For further information please contact:

Drax Holdings Limited:


Buchanan Communications
Judith Parry                 Tel: [phone]
Kelly-Ann French


International Power plc:

Aarti Singhal                 Tel: +(0)20 7320 8681










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