Receipt of Dividend

Rurelec PLC
11 April 2006


11 April 2006


                                  Rurelec PLC
                          ('Rurelec' or 'the Company')

                        Bolivian Subsidiary Guaracachi:
                  Record Results for Year to 31 December 2005
               Rurelec to Receive US$3.3 million in Net Dividend


Rurelec today announces that its Bolivian power generation subsidiary, Empresa
Guaracachi SA ('Guaracachi'), has released record financial results to the La
Paz Stock Exchange for the year ended 31st December 2005. In its 2005 financial
year, Guaracachi reported net income before extraordinary items of
US$8.41 million. After an extraordinary write down of deferred tax, net income
for the period was US$7.92 million, in line with analysts' forecasts. This is
Guaracachi's best financial performance since the company was privatised in
1995.


At the same time Guaracachi has announced that its shareholders have approved a
gross distribution of some US$7.53 million of dividends for the period.


On 6 January 2006, Rurelec completed the purchase of a controlling stake of
50.001 per cent. in Guaracachi. Therefore while Rurelec will receive a gross
dividend from Guaracachi of US$3.75 million (US$3.295 million after Bolivian
remittance tax), the earnings of Guaracachi will not be consolidated in
Rurelec's 2005 results since Rurelec did not own its controlling position in
Guaracachi during 2005; nor will the earnings attributable from Guaracachi
contribute to Rurelec's 2005 distributable reserves.


Guaracachi has begun 2006 strongly with continued demand growth for electricity
in the Bolivian national inter-connected system, where Guaracachi is the market
leader. In the second and third quarters of 2006 Guaracachi will be
commissioning 79 MW of new capacity at its Sucre and Santa Cruz plants, a 22 per
cent. increase from its current plant capacity.


Rurelec is expecting to announce its own consolidated results under IFRS for the
six month period ended 31st December 2005 in the second half of May. At the time
of the Guaracachi acquisition, which was considered a reverse takeover under the
AIM Rules, Rurelec changed its accounting reference date from 30th June to 31st
December. The first full year under the new accounting reference date will be up
to 31st December 2006, in line with the reporting dates of Rurelec's two
principal power generation businesses, Guaracachi and Energia del Sur in
Patagonia, Argentina.


Peter Earl, Managing Director of Rurelec PLC, said: 'These results on their own
fully vindicate our decision to invest in Bolivia. 2006 has started promisingly
both in Bolivia and in our Argentine operations and we look forward to sharing
the successes of 2006 with our shareholders.'


                                      ENDS




For further information contact:

Peter Earl
Managing Director, Rurelec PLC
Tel: [phone]



Notes to Editors

Rurelec PLC is a British company established to develop rural electrification
and power generation projects in Latin America. It is managed by a team with a
strong track record in developing power projects worldwide and with considerable
experience in the electricity sector in Latin America.


Rurelec has two principal businesses:

  • Ownership of power generation facilities in the Southern Cone of Latin
    America

  • Management of rural electrification expansion projects funded by the
    World Bank or multi-lateral development agencies.


Rurelec has existing power assets in Argentina and Bolivia.


In Argentina it owns a fifty per cent. stake in Energia del Sur, a 76 MW gas
fired plant which Rurelec is converting to combined cycle operation to add a
further 50 MW in 2007.


In Bolivia, it owns a 50.001 per cent. stake in Guaracachi, Bolivia's largest
power generation company which has a 29 per cent. national market share. In 2006
Guaracachi installed capacity will increase from 360 MW nominal capacity to 439
MW nominal capacity. In 2007 Guaracachi expects to bring into production 120 MW
of dedicated export capacity serving Northern Argentina and 80 MW of combined
cycle capacity serving the Bolivian domestic market. All Guaracachi's power
capacity is gas fired.


Rurelec floated on the AIM market of the London Stock Exchange in August 2004.
Guaracachi is independently listed on the Bolsa Boliviana de Valores.



                      This information is provided by RNS
            The company news service from the London Stock Exchange