Start up of Newcastle power plant

IPSA Group PLC

("IPSA" or "the Company")

Start Up of Newcastle Power Plant

IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that, on 23 June 2010, its NewCogen subsidiary re-started production of electricity under an emergency contract with Eskom. Under the contract the plant will provide electricity to support the South African economy during a period of power shortages which coincides with the FIFA World Cup. While the contract is due to end on 30th June, 2010 Eskom has indicated publicly that it may request an extension at least until the World Cup Final on 11th July.

In the meantime NewCogen and Eskom are awaiting formal notification from NERSA, the electricity regulator, that a six year MTPPP power purchase agreement has finally been approved. A further announcement will be made on the MTPPP contract as soon as news is available.

Speaking today, Peter Earl, CEO of IPSA said. "I am delighted that our Newcastle plant is helping to keep the lights on at the World Cup especially now that England has advanced to the final sixteen. We are honoured that NewCogen is contributing to the electricity supply that will light up Bloemfontein next Sunday evening."

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