Guaranteed Convertible Bond

RNS Number:6505G
International Power (Jersey) Ltd
30 October 2007

                      INTERNATIONAL POWER (JERSEY) LIMITED

      US$252,500,000 3.75 PER CENT. GUARANTEED CONVERTIBLE BONDS DUE 2023

 convertible into 3.75 per cent. redeemable preference shares of International
 Power (Jersey) Limited which are immediately exchanged for ordinary shares of
                       and unconditionally guaranteed by

                            INTERNATIONAL POWER PLC

                   NOTICE OF ADJUSTMENT TO THE EXCHANGE PRICE


Adjustment Event

On 9 August 2007 International Power plc announced that on 30 October 2007 it
would pay a cash Dividend of 2.77 pence per ordinary Share to Shareholders on
the register of members on the record date of 5 October 2007.


Adjustment of Exchange Price

Each US$1,000 principal amount of a Bond is convertible into one Preference
Share with a paid-up value of US$1,000. The Preference Shares will be delivered
to International Power plc following the issue of such Preference Shares to the
Bondholder, in consideration for which International Power plc will deliver such
number of Shares as results from dividing the paid up value of each Preference
Share (translated into pounds sterling at the fixed exchange rate of
US$1.5893=#1) by the Exchange Price in effect on the Conversion Date (rounded
down to the nearest whole number of Shares).

Clause 7 of the Preference Share Guarantee and Undertaking requires an
adjustment to be made to the Exchange Price in accordance with the terms of the
schedule thereto on the occurrence of certain corporate events. As a result of
the announcement by International Power plc that it will pay a cash Dividend to
the Shareholders, an adjustment to the Exchange Price is required pursuant to
paragraph B(iii) of the schedule.

The current Exchange Price is 170 pence.

From and including 30 October 2007, being the date of payment of the cash
Dividend, the Exchange Price will be adjusted to 168 pence. All other Terms and
Conditions of the Bonds remain unchanged.


Conversion Agent

Deutsche Bank AG London


Effective Date of Exchange Price Adjustment

The adjustment to the Exchange Price will become effective on 30 October 2007.


Defined Terms

All words and terms that are capitalised herein shall have the same meaning as
set out in the Terms and Conditions of the Bonds.



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