IPSA GROUP PLC - Claim by Iris Eco Power Sdn Berhad

Claim by Iris Eco Power Sdn Berhad

IPSA GROUP PLC

(Incorporated and registered in England and Wales)

(Registration Number 5496202)

AIM Share Code IPSA   ISIN GB00BOCJ3F01

JSE Share Code IPS    ISIN GB00BOCJ3F01

("IPSA" or "the Company")



Claim by Iris Eco Power Sdn Berhad



IPSA Group PLC (AIM: IPSA), the developer, owner and operator

of power generation capacity in southern Africa, today

announces that Iris Ecopower Sdn Berhad (“Iris”), the

Malaysian company with which it entered into a contract to

sell two of its Siemens Westinghouse turbines in October 2012,

has issued a claim against IPSA in the Malaysian courts for

the recovery of USD 3.1 million paid by way of deposit to IPSA

plus costs and consequential losses amounting to approximately

USD 9.8 million in total. Iris failed to pay IPSA the balance

of the consideration due, in spite of being granted time

extensions by IPSA, and the deposit was forfeited in

accordance with the terms of the contract signed by Iris and

IPSA. The contract is governed by English law. Based on legal

advice previously obtained, the Board of IPSA considers the

claim to be entirely without merit.  The board is taking

further legal advice on this matter.



London

22 November 2013



For further information contact:



Phil Metcalf, CEO                    +44 (0)20 7793 5615

IPSA Group PLC



James Joyce / Nick Field             +44 (0)20 7220 1666

W H Ireland Ltd



Riaan van Heerden,                   +27 (0)21 887 9602

PSG Capital (Pty) Ltd


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