IPS - IPSA - Extension Re Sale of Turbines

IPS - IPSA - Extension Re 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")                                                       
EXTENSION RE SALE OF TURBINES                                                   
IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power generation
capacity in Southern Africa, announces an update in respect of the sale of its  
two remaining Siemens Westinghouse 701 DU gas turbines.                         
Further to the announcement on 12 January 2012 of the completion of the turbine 
sale contract with Bright Day Pte Limited , the Company announces a delay in    
completion of the sale contract with Lezayre Holdings Limited ("Lezayre"), the  
purchaser of the remaining two turbines.                                        
Lezayre has requested a three month extension of the contract completion date.  
The Company and its largest creditors, Standard Bank and TurboCare, are         
considering this request and a further announcement will be made as appropriate.
The Company confirms that its working capital position remains extremely tight. 
As stated previously, whilst the Company`s operating subsidiary continues to be 
cashflow positive, additional working capital would be required by the Company  
in order to clear its overdue creditors, unless their repayment periods are     
extended, and pay operating expenses prior to completion of the sale.           
For further information contact:                                                
Phil Metcalf, CEO, IPSA Group PLC   +44 (0)20 7793 5600                         
John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd  +44 (0)20
7456 9191                                                                       
Riaan van Heerden,PSG Capital (Pty) Ltd   +27 (0)21 887 9602                    
Harry Ansell / James Joyce W H Ireland Ltd   +44 (0)20 7220 1666                
London                                                                          
2 February 2012                                                                 
Date: 02/02/2012 16:30:01 Supplied by www.sharenet.co.za                     
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