Loan Repayment

Rurelec PLC
24 July 2007


                                    Rurelec plc


                          ('Rurelec' or 'the Company')


                                 Loan Repayment





The Board of Directors announces the repayment of the remaining LIBOR+5 per
cent. loan notes 2011 issued in connection with the Group's acquisition of
Empresa Guaracachi S.A. ('Guaracachi') in January 2006.  The payment to Southern
Integrated Energy Limited, a wholly-owned subsidiary of the Independent Power
Corporation plc, a company controlled by Rurelec's Managing Director, Peter
Earl, consists of US$2,000,000 of principal plus interest to date, amounting to
a total of approximately £1.2m. The Directors of Rurelec, other than Peter Earl,
having consulted Daniel Stewart & Co, Nominated Adviser consider that the terms
of the repayment are fair and reasonable insofar as shareholders are concerned.


For further information, please contact:


Peter Earl

Managing Director                        Tel.       [phone]

Rurlec plc


Nominated Adviser:

Daniel Stewart & Company plc             Tel.       [phone]

Stewart Dick







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