Re AES Drax

UK Coal PLC
25 October 2002





25 October 2002

                                  U K COAL PLC

In a joint statement, UK COAL and AES Drax are pleased to confirm that they have
agreed a further rescheduling of deliveries through to mid-November and revised
contractual payment terms. The balance of the outstanding payment due to UK Coal
was paid on 25th October. The companies continue to work together to respond to
the difficulties and repercussions from events in the electricity market.


Contact
Gordon McPhie                                                01302 751 751

Chief Executive, UK Coal plc
Liz Morley                                                   020 7554 1400

Gavin Anderson & Company


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