Claim by Iris Eco Power Sdn Berhad

21st November 2013

IPSA Group PLC

("IPSA" or the "Company")

Claim by Iris Eco Power Sdn Berhad

IPSA Group PLC (AIM: IPSA), the developer, owner and operator of power generation capacity in southern Africa, today announces that Iris Ecopower Sdn Berhad ("Iris"), the Malaysian company with which it entered into a contract to sell two of its Siemens Westinghouse turbines in October 2012, has issued a claim against IPSA in the Malaysian courts for the recovery of US $3.1 million paid by way of deposit to IPSA plus costs and consequential losses amounting to approximately US $9.8 million in total. Iris failed to pay IPSA the balance of the consideration due, in spite of being granted time extensions by IPSA, and the deposit was forfeited in accordance with the terms of the contract signed by Iris and IPSA. The contract is governed by English law. Based on legal advice previously obtained, the Board of IPSA considers the claim to be entirely without merit. The board is taking further legal advice on this matter.

For further information contact: