IPS - IPSA Group Plc - Completion of sale of turbines

IPS - IPSA Group Plc - Completion of sale of turbines                           
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")                                                       
COMPLETION OF SALE OF TURBINES                                                  
IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power           
generation capacity in Southern Africa, announces that the sale of two of       
its Siemens Westinghouse 701 DU gas turbines to Bright Day Pte Limited          
("Bright Day") completed yesterday.                                             
The sum of USD31 million being the balance of the USD35 million purchase        
price for the pair of turbines and ancillary equipment has been paid by         
Bright Day to a trust account operated by the Company`s two key creditors,      
Standard Bank PLC and Turbocare SpA. Following disbursement of funds to the     
key creditors the Company`s indebtedness will be reduced by approximately       
GBP22.6m, leaving approximately GBP15.5m outstanding in aggregate.              
Repayment in full of the Standard Bank loan and other creditors of the          
Company is expected to take place on completion of the sale of the              
remaining pair of turbines which are under contract to Lezayre Holdings         
Limited at a price of USD31m.  Until then, the Group`s working capital will     
continue to remain extremely tight.                                             
Commenting, Richard Linnell, Chairman of IPSA, said: "I am pleased to have      
achieved this important milestone and whilst the completion has not             
resulted in the release of working capital for the Company, it is an            
important step on the path to recovery and has paved the way for a strong       
start to 2012".                                                                 
For further information contact:                                                
Phil Metcalf, CEO,                  +44 (0)20 7793 5600                         
IPSA Group PLC                                                                  
John Llewellyn-Lloyd / Harry        +44 (0)20 7456 9191                         
Stockdale,                                                                      
Execution Noble & Company Ltd                                                   
Riaan van Heerden,                  +27 (0)21 887 9602                          
PSG Capital (Pty) Ltd                                                           
Harry Ansell / James Joyce          +44 (0)20 7220 1666                         
W H Ireland Ltd                                                                 
London                                                                          
12 January 2012                                                                 
Date: 12/01/2012 14:20:12 Supplied by www.sharenet.co.za                     
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