Sale of Turbines

15 October 2012

IPSA Group PLC

("IPSA" or "the Company")

Sale of Turbines

IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation capacity in southern Africa, announces that that it has agreed to sell its two remaining Siemens Westinghouse 701 DU gas turbines to Iris Eco Power Sdn Bhd ("Iris"), a Malaysian power development company, for consideration of US$31 million (approximately £19.4 million).

Iris has paid a deposit of US$3.1 million and the balance is due on or before 5 November 2012. The equipment sale agreement remains subject to the approval of the Company's major creditors, Standard Bank PLC ("Standard Bank") and TurboCare SpA ("TurboCare"). A further announcement will be made in due course.

IPSA has agreed that all proceeds from the contract, including the deposit, will be paid into a trust account to be operated by Standard Bank and TurboCare, which will receive funds ahead of all other creditors. Thereafter, funds will be released to the Company, enabling the Company to settle with all its creditors. The working capital position of the Company will remain extremely tight until the sale of the Turbines is complete.

These two remaining turbines had previously been contracted to be sold to Lezayre Holdings Limited ("Lezayre"), for which IPSA had received a non-refundable deposit. That contract has not completed due to extensive delays to Lezayre's project. As announced on 9 July 2012, since Standard Bank and TurboCare have not formally approved the contract extension, the Lezayre contract has expired.

Commenting, Richard Linnell, Chairman of IPSA, said:

"Whilst we had hoped that Lezayre would have completed the acquisition of the turbines by now, I am pleased that we have received deposit funds from Iris and I look forward to completion shortly at which time our liquidity position will be transformed, with cash on deposit and no net debt. I am grateful to IPSA shareholders and creditors for their patience."

For further information contact: