Acquisition

Rurelec PLC
11 October 2004


FOR IMMEDIATE RELEASE

Rurelec PLC ('Rurelec') Buys First Power Generation Equipment


11th October 2004

Rurelec today announces that it has purchased its first power plant equipment
for isolated generation of electricity in Bolivia.

As disclosed in its Admission Document dated 18 August 2004, Rurelec entered
into an option agreement with Empresa Guaracachi SA ('EGSA') to acquire Energia
para Sistemas Aislados SA ('ESA'), an electricity generating company, which
owned a portfolio of power generating assets including, inter alia, seven
reciprocating engines of Worthington and Nordberg manufacture (the 'Option
Agreement'). The Option Agreement was conditional upon the power plants being
released from their current licences to generate electricity for Bolivia's
national grid.

Due to the increase in electricity demand on the national grid in Bolivia, with
power demand in the east of the country growing well ahead of the national rate,
EGSA is able, at this stage, to release two out of the seven planned power
generating machines, representing 6MW of power.  Rurelec has therefore allowed
the Option Agreement with EGSA to lapse and has entered into new arrangements
for the acquisition of the machines.

Rurelec has agreed to acquire ESA, which now only holds the two Worthington
reciprocating dual fuel engines immediately available, for a total cash
consideration of US$50,000 and the assumption of an obligation to make
approximately US$60,000 per annum of long term payments to the Central Bank of
Bolivia with a final maturity of 2022.  The book value of the machines at 30th
September was US$268,851.  The purchase will be financed out of Rurelec's
existing cash facilities and has been contracted at a lower price than
originally anticipated In accepting the offer EGSA has also agreed to give
Rurelec a right of first refusal for up to two years over the five remaining
machines as and when they are released from their licences.  The next review
date for the release of three of these machines from generating licences is in
May 2005.

Rurelec expects its first Bolivian power plants to be installed in the cities of
Trinidad and Yacuiba and is in advanced negotiations with fuel suppliers for
both cities.  Rurelec is entering into negotiations with other suppliers of
generating equipment for use in isolated areas in central and southern Bolivia
in order to accelerate its planned roll out of new capacity to meet unsatisfied
demand in the rural areas.

This is the first step for Rurelec towards achieving its goal of building a
rural electrification business in Bolivia and surrounding countries and the
Board expects to announce further transactions over the coming months.



Peter R. S. Earl
Managing Director

For further information contact:
Peter R. S. Earl
Tel: [phone]




Rurelec PLC is a British company established to develop rural electrification
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 isolated areas

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

Rurelec recently floated on the AIM market of the London Stock Exchange.



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