Re Contract

Rurelec PLC
25 February 2005

FOR IMMEDIATE RELEASE



Rurelec PLC ('Rurelec')


Acquisition of power generation equipment out of receivership and onward sale


25th February 2005



Further to its announcement dated 25th January 2005, Rurelec announces that the
acquisition of nine Jenbacher 616 gas engines has completed today.



The subsequent sale of six machines has also completed, giving rise to a gross
profit to Rurelec on the sale of approximately £333,000 and the carrying value
of engines retained will also be approximately £333,000.







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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