Interim Results

Rurelec PLC
30 March 2005



FOR IMMEDIATE RELEASE

Rurelec PLC ('Rurelec')

30th March 2005

Interim results for the 6 months ended 31st December 2004

Chairman's Statement

Rurelec today announces its first results since joining the AIM Market in August
2004.

Since its flotation, Rurelec has moved to acquire power generation assets for
installation in isolated areas of Latin America serving rural communities in
Bolivia and Argentina.  I am pleased to report that Rurelec now owns outright 12
MW of gas fired and dual fuel capacity in the form of two Worthington and three
GE Jenbacher 616 gas engines.  Rurelec also has the right to acquire a further
15 MW of dual fuel machines and has made arrangements to lease a further 4 MW of
GE Jenbacher capacity.

All of Rurelec's initial power generation projects are located in Bolivia.  6 MW
of capacity is to be based in Trinidad in the country's lowland Amazonian
territory using gas condensate as a fuel source.  Rurelec intends to expand in
Trinidad and is exploring the use of bio-diesel for its dual fuel reciprocating
engines.  10 MW of gas-fired capacity using the high efficiency GE Jenbacher gas
engines will be installed in the Department of Tarija to the south of Bolivia.

Rurelec is actively negotiating expansion opportunities in Argentina to the very
north of the country, where the national grid is weak, and in Patagonia to the
south where there are isolated systems.  Argentina and Bolivia both suffer
shortages of power generation capacity.

As well as developing new power plant capacity, Rurelec is pursuing public
sector contracts to oversee and manage rural electrification projects in Bolivia
which are being funded by multi-lateral organisations and European government
funds.  Some US $190 million has been committed for public sector funded wires
projects in rural areas.  Rurelec hopes to be awarded contracts to supervise
such projects.

As expected, Rurelec recorded a loss of £107,870 for the period ended 31
December, 2004.  On 25 February, 2005 the Company announced that it had
completed the purchase of nine GE Jenbacher 616 engines for £1 million and
simultaneously sold six of those machines for £1 million, thereby recording a
gross profit of £333,000.

Subsequently, the Company announced on 3rd March that it had successfully
renegotiated the terms of its October 2004 purchase of two Worthington engines.
Instead of taking an assignment of US $1.2 million of long term debt associated
with the machines, Rurelec has made a one time cash payment of US $500,000.
Rurelec has therefore 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 over £600,000 of cash or near cash.

Rurelec appointed Carlos Garcia Agreda as General Manager of its Bolivian
isolated power subsidiary, Energia para Sistemas Aislados SA ('ESA').  Carlos
Garcia is an electrical and mechanical engineer who spent six years at
Cooperativa Rural de Electrificacion ('CRE'), a distribution co-operative that
serves Bolivia's Santa Cruz department and which is also Bolivia's largest rural
electrification co-operative, before taking responsibility for rural
electrification projects at Bolivia's Vice-Ministry of Electricity.  The
provision of power for isolated generation has become an important political
issue in Bolivia.  ESA is in discussions, which may lead to new joint ventures
with local partners in Bolivia and Argentina and with multi-lateral agencies for
an accelerated roll-out of new power capacity.

In November 2004 funds managed by Gartmore subscribed £255,000 of new Rurelec
shares for cash and now owns 4.7 per cent. of the issued share capital of the
Company.

Rurelec continues to explore expansion possibilities in line with its intention
to become the leading rural power company in Southern Cone of Latin America.

Daniel Stewart & Co. PLC has been appointed the Company's Nominated Adviser,
with effect from 30th March 2005.

Jimmy West
Chairman

Unaudited Consolidated Profit and Loss Account for the six months ended 31
December 2004
                                                                                    Period from 
                                                     6 months to                 incorporation to
                                                   31 December 2004                30 June 2004   
                                                      Unaudited                       Audited   
                                                          £                              £

Turnover                                                  0                              0
Administrative expenses                               (112,774)                        (22)
Interest receivable                                     4,904                           65
(Loss)/Profit on ordinary activities before
taxation
                                                      (107,870)                         43
Tax on profit on ordinary activities                      -                              -
(Loss)/Profit for the period                          (107,870)                          -


Loss per ordinary share for the six months ended 31st December 2004: 0.88p
Unaudited Consolidated Balance Sheet at 31 December 2004

                                                      31 December                    30 June
                                                          2004                        2004
                                                       Unaudited                     Audited
                                                    £             £              £             £
Fixed assets                                                   322,660                         0

Current assets

Cash at bank and in hand                         893,010                      200,043


Debtors                                          40,933                          0
                                                               933,943                      200,043

Current Liabilities

Creditors: amounts falling due within one                     (302,076)                        0
year
                                                                                               
Current assets less current liabilities                        631,867                      200,043
                                                                                            

Total assets less current liabilities                          954,527                      200,043


Capital and Reserves

Called up share capital                                        252,000                      200,000
Unrealised gain on investment                                   18,124
Share premium account                                          792,232                         0
Profit and loss account                                       (107,829)                       43
                                                               954,527                      200,043

Net assets per ordinary share at 31st December 2004: 7.6p

Unaudited Consolidated Cashflow Statement for the six months ended 31 December
2004
                                                                                    Period from 
                                                  6 months to                    incorporation to
                                                31 December 2004                   30 June 2004
                                                   Unaudited                         Audited
                                                                                       
                                                       £                                £
Net cash outflow from operating
activities
                                          (112,774)                                    (22)
Net Increase in liabilities                261,141
Returns on investments and servicing
of finance:
Interest received                           4,904                                       65
Net cashflow from operating                                    153,271
activities and returns on investment                                                    43

Financing: share issues less issue
expenses written off                       844,232                                   200,000

Unrealised foreign exchange gain            18,124
Investment in subsidiary                  (322,660)                                     0
Net cashflow from financing and                                539,696
investment

Net cashflow                                                   692,967               200,043



Notes to the unaudited financial statements
     
1.   The financial information set out above does not constitute statutory
     accounts within the meaning of Section 240 of the Companies Act 1985. It 
     has been prepared on the basis of the accounting policies set out in the 
     Group's 2004 statutory accounts. The results for the period to 30th June 
     2004 have been extracted from the Group's published accounts which have 
     been filed with the Registrar of Companies. The auditors' report on the 
     full statutory accounts of the Group for the period ended 30 June 2004 were 
     unqualified.
     
2.   The financial information for the six months ended 31 December 2004 has
     not been audited.
     
3.   The consolidated balance sheet has been prepared in accordance with the
     rules for acquisition accounting.  In the opinion of the Directors the
     adjustment to fair value is reasonable.
     
4.   The loss per ordinary share has been calculated on the loss on ordinary
     activities after taxation of £107,870 using the weighted average number of
     ordinary shares in issue during the six months 12,186,000.
     
5.   Net assets per ordinary share have been calculated on net assets of
     £954,527 divided by 12,600,000 ordinary shares in issue at 31st December 
     2004.
     
6.   Post balance sheet events
          
     (i)  Pursuant to an amendment to the contract dated 11th October 2004 for 
          the purchase of Energia para Sistemas Aislados S.A. ('ESA'), executed
          on 2nd March 2005, the company's investment in its subsidiary is 
          US$550,000, the sterling equivalent of which, at the original contract 
          date, is £306,961.  Of this amount US$500,000 was outstanding at year 
          end, equivalent to £260,552, and is carried as a short term creditor.  
          The difference between the carrying value of the assets acquired and 
          the value of the liability at 31st December 2004 is shown as an 
          unrealised gain on investment
          
     (ii) On 25th February, 2005 the Company completed the purchase an onward 
          sale of GE Jenbacher 616 gas engines.  Nine engines were acquired for 
          a consideration of £1 million.  Simultaneously the Company sold six 
          engines, also for £1 million, recognising a £333,333 gain on disposal.  
          The carrying value of the three machines the Company now owns is 
          £333,333.
     
7.   This announcement is being sent to all shareholders on the register at
     30th March 2005 and copies are available to the general public free of 
     charge during office hours for one month from the date of this announcement 
     at the Company's registered office, Fifth Floor, Prince Consort House, 
     27-29 Albert Embankment, London SE1 7TJ.


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 August 2004 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.

Daniel Stewart & Co. PLC 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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