Combined Cycle

International Power Mothballs 1100 MW Hays Power Station in Texas

29 January 2004 – International Power said Wednesday that it has mothballed its 1100 MW combined cycle gas turbine (CCGT) Hays power station in Texas, for an indefinite period.

Hays, which entered commercial operation less than two years ago, employs modern technology and achieves superior environmental performance. This mothballing reflects the very weak wholesale electricity prices in Texas.

Philip Cox, Chief Executive Officer of International Power said: “Uneconomic wholesale prices in Texas mean that it is not viable to run Hays, despite the fact that it is a modern and efficient power station that operates to the highest environmental standards. We will reinstate Hays only when market conditions improve to a level that provides sound financial returns.”

The mothballing of Hays does not affect International Power’s earnings guidance for the financial year to December 2004.