Acquisition

Rurelec PLC
03 March 2005



FOR IMMEDIATE RELEASE


Rurelec PLC ('Rurelec')



3rd March 2005


Amendment to payment terms for its first equipment acquisition


Rurelec today announces that it has successfully renegotiated the payment terms
in respect of its acquisition of Energia para Sistemas Aislados SA ('ESA'),
owner of two 3 MW reciprocating dual fuel engines, announced on 11th October
2004.


Instead of taking an assignment of US $1.2 million of long term obligations
associated with the machines, Rurelec has made a one time cash payment of US
$500,000 in full and final settlement.  Furthermore, interest and principal due
on 31st December 2004 have been waived.  Rurelec has made a headline saving of
US $700,000 on the cost of the machines.  As a result Rurelec as at today's date
has no debt, ownership of 12 MW of plant capacity and approximately £600,000 of
cash or near cash.



Elizabeth Shaw
Finance Director


For further information contact:
Elizabeth Shaw
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 floated on the AIM market of the London Stock Exchange in order to have
access to European institutional capital for new power projects and to ensure
transparency for its public sector-funded project management activities.



Arbuthnot Securities Limited which is authorised by the Financial Services
Authority is acting as nominated adviser to Rurelec and for no one else in
connection with the transactions described herein and will not be responsible to
any person other than Rurelec for providing the protection afforded to its
customers or for advising any other person in relation to the transactions
described herein.




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