Placing for Cash

Rurelec PLC
05 November 2004

FOR IMMEDIATE RELEASE



Rurelec PLC ('Rurelec') Placing of 600,000 new shares for cash



5th November, 2004


Rurelec announces that Gartmore Investment Management has subscribed for 600,000
new ordinary shares of 2 pence each in a placing for cash on Friday 5th
November, 2004 at a placing price of 42.5 pence each.  Following the placing
Gartmore Investment Management will be interested in 4.76 per cent of the issued
share capital of the Company.


Following the placing, Rurelec has 12,600,000 issued and fully paid shares, with
an aggregate nominal value of £252,000.  The proceeds of the placing will be
used for the Company's working capital requirements as it develops generation
for rural electrification projects in Bolivia and Argentina.


The new ordinary shares will rank pari passu in all respects with existing
ordinary shares.  Application has been made to AIM to admit the new ordinary
shares.  Trading is expected to commence on 11th November, 2004.




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.




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