Extension to power purchase agreement

IPSA Group PLC

("IPSA" or the "Company")

Extension to power purchase agreement

IPSA, the AIM and Altx dual listed independent power plant developer with operations in southern Africa, today announces that its subsidiary Newcastle Cogeneration Pty. Limited ("NewCogen") has signed an extension of its MTPPP power purchase agreement with Eskom, South Africa's state electricity company. The extension, which is for an initial period of one year but which may be further extended for two subsequent periods of two years each providing that Eskom receives the necessary regulatory approvals.

Commenting today, Peter Earl, Acting CEO of IPSA, said: "We are pleased that the PPA extension has been signed and the plant is able continue in operation. With this behind us, we plan to resume our expansion programme."

For further information contact: