International Power Repays US$769 million of US Debt

(London 1 December 2009) International Power announces that on 3 December 2009 it will be repaying US$769 million (£469 million) of debt secured on five of its US merchant assets located in Texas and New England, with a total capacity of 3,523MW.

International Power has decided to temporarily repay this debt given its strong corporate liquidity and the benefits of accelerating the use of the tax losses available within the US business. The Group is highly free cash generative and will continue to have strong liquidity following this repayment.

International Power intends to re-finance these assets in the future. These assets currently have a low level of gearing at US$218/kW and there are a number of financing options available, which will be reviewed in the light of conditions in the US power and debt markets.

Notes to Editors:

The debt, which is due in July 2010, is secured on five US merchant assets: Bellingham, Blackstone, Hays, Midlothian and Milford.

US$69 million (£42 million) of the $769 million (£469 million) repayment will be funded from cash held within the US business.

An exchange rate of £1:$1.64 has been applied in this announcement.

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About International Power

International Power plc is a leading independent electricity generating company with 32,358MW gross (20,648MW net) in operation and 3,320MW gross (1,018MW net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, Belgium, Canada, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico and Thailand. International Power is listed on the London Stock Exchange with ticker symbol IPR. Company website: www.ipplc.com