Redeemable Shares Redemption

Drax Group PLC
22 December 2006


                                 DRAX GROUP PLC
                           ('Drax' or the 'Company')

                                (Symbol: DRX)

                        REDEMPTION OF REDEEMABLE SHARES


On 20 October 2005, the Company (which was then a subsidiary of Drax Group
Limited) authorised and issued, fully paid, 499,980 redeemable shares of 10
pence each to Drax Group Limited (the 'holder'). Upon listing of the Company on
15 December 2005, the holder became a subsidiary of the Company.

The redeemable shares carry no rights to any dividend or surplus capital return
over and above their share issue price of 10 pence. The shares are redeemable at
the option of both the Company and the holder and in any event must be redeemed
by no later than 20 October 2030.

Drax now gives notice, in accordance with rules 12.5.2 to 12.5.4 of The Listing
Rules that on 22 December 2006, the 499,980 redeemable shares of 10 pence each
were redeemed at par. Following this redemption there are no redeemable shares
in issue.

22 December 2006


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