Update on Offer for Drax

RNS Number:6914S
International Power PLC
01 December 2003


                    Update on Improved Offer for Drax


(London - 1 December 2003) International Power plc ("IPR") notes the
announcement released by Drax Holdings Limited ("Drax") on 1 December 2003
stating that Drax has declined IPR's improved offer.  IPR had raised the
discount price for the restructured Drax A-2 debt from 71% to 95% of face value.


Philip Cox, Chief Financial Officer of International Power said:  "We believe
our improved offer was in the interest of all creditors and was, in our view,
achievable within the overall timetable."


"As an industry player and one with considerable experience in running the Drax
facility, IPR is well placed to create value for all creditors of Drax.  Our
original offer still stands and we remain focussed on opportunities to
participate in the consolidation of the UK generation sector," Mr Cox added.


IPR believes that the alternative proposals from Drax, including their proposal
that IPR run a tender process, were not commercially attractive, practical or
achievable within the agreed timetable.


For further information please contact:


Aarti Singhal

[phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

OUPFSEFDFSDSELE