Final Results - Part 1

Drax Group PLC
08 March 2007


                                 DRAX GROUP PLC

                                 (Symbol: DRX)


       PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 - PART ONE


(London - 8 March 2007) Drax Group plc ('Drax' or the 'Company'), the UK power
generator, announces its preliminary results for the year ended 31 December 2006
and reports on key developments to date.

Highlights

• Underlying business performing well with strong operating and trading
  performance increasing EBITDA(1) by 144% to £583 million.

• EBITDA enhancements substantially achieved 12 months ahead of target.
  Estimated £45 million of EBITDA enhancements realised in the year ended 31
  December 2006.

• Proposed final ordinary dividend of 9.1 pence per share; proposed second
  special dividend of 32.9 pence per share; making total dividend payments for
  the year of £497 million (equivalent to 134.7 pence per share (3)).

• High plant availability placed Drax as the UK's industry leader for the
  reliable operation of coal-fired plant by a clear margin.

• Continued management focus on safety delivered record improvements and a
  leading performance.

• Turbine upgrade announced in December will boost efficiency of the plant
  to 40% and save one million tonnes of CO2 each year.

• Formalised our target to produce 10% of output from biomass by 2009
  which is expected to deliver an annual saving of two million tonnes of CO2.

Year ended 31 December 2006 compared to year ended 31 December 2005
                                                                   
                                                       Year ended 31 December
                                                      2006                2005
                                                   £ million           £ million
Total revenue                                        1,387                 929
Gross profit                                           746                 389
EBITDA (1)                                             583                 239
Operating profit (2)                                   658                 355
Profit before tax                                      634                 264
                                             
                                                     Pence              Pence   
                                                    per share          per share
Basic and diluted earnings per share                   126                 108
Proposed final ordinary dividend (3)                   9.1                   -
Proposed special dividend (3)                         32.9                   -


(1) EBITDA is profit before interest, tax, depreciation and amortisation,
    exceptional items and unrealised gains/(losses) on derivative contracts.

(2) Operating profit includes exceptional items and IAS 39 mark-to-market
    adjustments totalling £110 million in 2006 compared to £147 million in 2005.

(3) Based on the number of shares in issue as at 31 December 2006.


Commenting on the results, Dorothy Thompson, Chief Executive of Drax, said:


'These results and our achievements in 2006 reflect the benefit from our
strategy of delivering excellence in plant operations and trading performance;
enhancing and diversifying the business, with a focus on fuel optionality and
carbon abatement; and ensuring we have the appropriate financial and human
resources. This strategy will continue in 2007.

'We firmly believe that we have an important part to play in the UK's transition
towards a low carbon economy whilst, at the same time, delivering reliable
supplies of electricity. We continue to work on projects to reduce our carbon
emissions and are pleased to announce investments of up to £67 million to
increase our capability to produce 10% of our output from renewable fuels by
2009. This is in addition to the £100 million turbine enhancement project which
we are now implementing. We expect these investments together to save over three
million tonnes of CO2 emissions each year, equalling the output of around 700
wind turbines.'



                                    ---


Forward Looking Statements

This announcement may contain certain statements, statistics and projections
that are or may be forward-looking. The accuracy and completeness of all such
statements, including, without limitation, statements regarding the future
financial position, strategy, projected costs, plans and objectives for the
management of future operations of Drax Group plc ('Drax') and its subsidiaries
(the 'Group') are not warranted or guaranteed. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events and depend
on circumstances that may occur in the future. Although Drax believes that the
expectations reflected in such statements are reasonable, no assurance can be
given that such expectations will prove to be correct. There are a number of
factors, many of which are beyond the control of the Group, which could cause
actual results and developments to differ materially from those expressed or
implied by such forward-looking statements. These factors include, but are not
limited to, factors such as: future revenues being lower than expected;
increasing competitive pressures in the industry; and/or general economic
conditions or conditions affecting the relevant industry, both domestically and
internationally, being less favourable than expected. We do not intend to
publicly update or revise these projections or other forward-looking statements
to reflect events or circumstances after the date hereof, and we do not assume
any responsibility for doing so.


                                    ---


Management Presentation and Conference Call

Management will host a presentation for analysts and investors at 9:00am (UK
Time) today, Thursday 8 March 2007, at the City Presentation Centre, 4 Chiswell
Street, Finsbury Square, London, EC1Y 4UP.

The meeting can also be accessed remotely via a conference call or alternatively
via a live webcast, as detailed below. After the meeting, a video webcast and
recordings of the call will be made available and access details for these
recordings are also set out below.

A copy of the presentation will be made available from 7:00am (UK time) on
Thursday 8 March for download at www.draxgroup.plc.uk (>>Financial Results
2006).

Event Title: Drax Group plc:      Full Year Results
Event Date:                       Thursday 8 March 2007
Event Time:                       9:00am (UK time)

UK Call In Number:                020 7162 0125
International Call In Number:     [phone]
US Call In Number:                [phone]

Webcast details
Live Event Link:                  http://events.webeventservices.com/Drax/2007/03/08/

UK Instant Replay
Start Date:                       8 March 2007
Delete Date:                      7 April 2007
Dial In Number:                   020 7031 4064
Freephone number (UK only):       0800 358 1860
Passcode:                         737384

US Instant Replay
Start Date:                       8 March 2007
Delete Date:                      7 April 2007
Dial In Number:                   [phone]
Freephone number:                 [phone]
Passcode:                         737384

Video Webcast
Start Date:                       8 March 2007
Delete Date:                      9 June 2007
Archive Link:                     http://events.webeventservices.com/Drax/2007/03/08/


For further information please contact:

                                      On the day          Thereafter

Dorothy Thompson, Chief Executive
Gordon Boyd, Finance Director         [phone]  [phone]

Andrew Jones, Investor Relations      [phone]  [phone]

Melanie Wedgbury, Media Contact       [phone]  [phone]

Tulchan Communications
David Trenchard and Peter Hewer       [phone]


Website: www.draxgroup.plc.uk





                                 PART TWO TO FOLLOW 






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