Interim Results

Rurelec PLC
27 September 2007





                            Rurelec PLC ('Rurelec')



             Interim results for the 6 months ended 30th June 2007



Rurelec PLC, the AIM quoted power developer and owner of power plants in Latin
America, today announces its interim results for the 6 months ended 30th June
2007.


Highlights:


   •Strong organic growth for power generation businesses
   •Operating profit £1.97 million (2006: £1.5 million), an increase of 31%
   •Guaracachi successfully commissioned 71 MW of open cycle capacity in
    Santa Cruz with the completion of GCH 11, Bolivia's newest power plant


Post period highlights


   •Construction of the new CCGT capacity nearly two thirds complete
   •Currently establishing Rurelec Climate Change Finance ('RCCF') to
    securitise the revenue from the forward sale of United Nations CERs
    generated by both projects





For further information please contact:



Rurelec PLC             Daniel Stewart          Parkgreen Communications
Peter Earl, CEO         Stewart Dick            Clare Irvine / Lindsay Bancroft
[phone]     [phone]     [phone]











                            Rurelec PLC ('Rurelec')


             Interim results for the 6 months ended 30th June 2007


                              Chairman's Statement



I am pleased to report the results of Rurelec PLC for the half year to 30th
June, 2007. Rurelec recorded a profit after tax for the period of £0.94 million
(2006: £6.9 million) on revenues of £10.5m (2006: £9.4m). Operating profit for
the period was £1.97 million compared to £1.5 million for the same period in
2006. This represents an increase in operating profit over the previous period
of 31 per cent. in Sterling and of 47 per cent. at constant exchange rates
reflecting very strong underlying earnings growth.


It should be noted that the comparable half year after tax figures for 2006
included significant 'negative goodwill' credited to income. While Rurelec
expects to report further continuing uplifts in the value of its portfolio of
Latin American power assets during the course of the full year as new capacity
is constructed and commissioned, the results released today primarily underline
the fact that to date 2007 has been a year of strong organic growth for
Rurelec's power generation businesses.


In Bolivia, Guaracachi has continued its programme of power plant construction,
successfully commissioning 71 MW of open cycle capacity in Santa Cruz in March
2007 with the completion of GCH 11, Bolivia's newest power plant. I am delighted
to report that this new General Electric 6 FA has performed faultlessly since
commissioning and has provided an important reserve factor for Bolivia's power
industry.


Further organic growth in Guaracachi is expected in the second half of 2007 with
the commissioning of two more Jenbacher 616 gas engines in Sucre, scheduled to
take place in November. The addition of nearly 100 MW of new combined cycle
capacity in Santa Cruz is expected to occur at the end of 2008.


In Argentina, Energia del Sur has performed in line with expectations. While
generation output has been high and revenues running at record levels, gas
prices have risen to reflect the national shortage of natural gas and
electricity margins have been under pressure since gas providers have been
unwilling to enter into long term gas contracts at fixed prices. However,
margins are expected to improve considerably at the end of the first quarter of
2008 as a result of both increasing electricity tariffs at the generation level
and the planned commissioning of 60MW of new CCGT capacity.


Construction of the new CCGT capacity is nearly two thirds complete. The largest
single element of the project, the heat recovery steam generators or HRSGs,
which are both the most expensive and longest lead time items, were shipped to
Argentina from South Korea in August and will be assembled in the coming months.





Rurelec has played an important role from its London headquarters in financing
the CCGT expansions in both Argentina and Bolivia. Rurelec is in the process of
establishing Rurelec Climate Change Finance ('RCCF') to securitise the revenue
from the forward sale of United Nations CERs generated by both projects. Rurelec
PLC intends to lock in high prices for CERs for the life of the Kyoto Protocol
and to use the proceeds of securitisation to provide the capital needed for the
development of new power plant capacity. RCCF is at the cutting edge of carbon
credit finance. I am proud of the hard work which has gone into this effort, the
effects of which will be reflected in Rurelec's profitability from 2008 onward.


Further expansion is expected from Rurelec companies' efforts to export power
from their home countries. Bolivia in particular has the capacity to export
power to its neighbours and Guaracachi continues to finalise its 120 MW Yacuiba
export project to supply power to northern Argentina. Domestically too,
Guaracachi is exploring further turbine upgrade and expansion options based on
its fleet of Frame 5 gas turbines in Santa Cruz.


By 2008 Rurelec will have a high market share in terms of the installed power
generation capacity of Bolivia. For this reason the Directors are now looking at
ways to expand the group's portfolio of power plants into other neighbouring
countries to include Chile and Peru. Rurelec is also making advances in the area
of isolated generation in Latin America, taking advantage of technology
developments in the use of renewable fuels for small power plants situated off
the grid which benefit from carbon credits and concessionary finance.


The outlook for Rurelec is therefore bright indeed and we expect to maintain our
policy of progressive dividend payments linked to the Company's continuing
growth.



Jimmy West
Chairman




RURELEC PLC

CONSOLIDATED INCOME STATEMENT (unaudited)
for the half year ended 30 June 2007
                                                                                                 

                                                              6 months                   6 months
                                                            to 30/6/07                 to 30/6/06
                                              Notes              £'000                      £'000

Revenue                                                         10,521                      9,361

Cost of sales                                                   (7,291)                    (6,461)

Gross profit                                                     3,230                      2,900

Administrative expenses                                         (1,261)                    (1,397)

Operating profit                                                 1,969                      1,503

Negative goodwill                                3                   -                      5,572

Finance income                                                      33                        169
Finance expense                                                   (443)                      (238)

Profit before tax                                                1,559                      7,006

Tax expense                                                       (618)                       (78)

Profit for the period                                              941                      6,928

Attributable to minority interest                                  843                        749
Attributable to shareholders of                                     98                      6,179
  Rurelec PLC

Earnings per share (basic)                       4               0.14p                      9.05p
Earnings per share (diluted)                     4               0.14p                      9.05p

Other financial information:
 Underlying earnings per share                   4               0.14p                      0.99p
  (basic and diluted)
 Net asset value per share                       6               47.5p                      42.1p


CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
(unaudited) for the half year ended 30 June 2007
                                                                                                 

Profit for the period attributable to                               98                      6,179
  shareholders of Rurelec plc
Exchange differences on translation                               (686)                    (1,791)
  of overseas operations
Total recognised income and expense              5                (588)                     4,388
  for the period



RURELEC PLC

CONSOLIDATED BALANCE SHEET (unaudited)
at 30 June 2007
                                                                                                 

                                                               30/6/07     31/12/06       30/6/06
                                            Notes                £'000        £'000         £'000

Assets
Non-current assets
  Property, plant and equipment                                 75,063       70,886        58,950
  Investments                                                        1            3            18
  Trade and other receivables                                      441          442           535
  Deferred tax assets                                              460          359           311
                                                                75,965       71,690        59,814
Current assets
  Inventories                                                    2,985        3,146         2,972
  Trade and other receivables                                    8,448        8,530         8,063
  Cash and cash equivalents                                      5,104        3,179         5,361
                                                                16,537       14,855        16,396

Total assets                                                    92,502       86,545        76,210

Equity and liabilities
Equity attributable to shareholders of
Rurelec PLC:
  Share capital                                                  1,466        1,366         1,366
  Share premium                                                 23,983       21,303        21,299
  Translation reserve                                           (5,634)      (4,948)       (2,175)
  Retained earnings                                             15,027       16,542         8,263
                                               5,6              34,842       34,263        28,753
Minority interest                                               28,434       29,985        23,437

Total equity                                                    63,276       64,248        52,190

Non-current liabilities
  Trade and other payables                                         246          247           491
  Deferred tax liabilities                                         723          739             -
  Borrowings                                                    13,596       10,522        13,959
                                                                14,565       11,508        14,450

Current liabilities
  Trade and other payables                                       8,029        5,935         9,360
  Borrowings                                                     6,632        4,854           210
                                                                14,661       10,789         9,570

Total liabilities                                               29,226       22,297        24,020

Total equity and liabilities                                    92,502       86,545        76,210




RURELEC PLC

STATEMENT OF CONSOLIDATED CASH FLOWS (unaudited)
for the half year ended 30 June 2007
                                                                                                 

                                                              6 months                    6 months
                                                            to 30/6/07                  to 30/6/06
                                                                 £'000                       £'000

Net cashflow from operating activities
  Result for the period before tax                               1,559                      7,006
  Adjustments                                                    1,796                     (4,620)
  Taxation paid                                                 (1,002)                      (263)
  Change in inventories                                             88                       (209)
  Change in trade and other                                       (486)                    (2,604)
   receivables
  Change in trade and other                                      2,999                        718
   payables

Net cash inflow from operating activities                        4,954                         28

Investing activities
  Additions to plant, property                                  (7,105)                    (2,781)
   and equipment
  Deferred consideration paid                                        -                       (431)
  Acquisition of 50.00125% of                                        -                     (7,913)
   Empresa Electrica Guaracachi S.A.
   (net of cash)
  Interest received                                                 33                        169

Net cash outflow from investing activities                      (7,072)                   (10,956)

Financing activities
  Net increase / (decrease) in loans                             4,962                       (521)
  Proceeds from share issue                                      2,780                     18,670
  Interest paid                                                   (372)                      (238)
  Dividend paid to shareholders                                 (1,613)                         -
  Dividend paid to minority shareholders
   of Empresa Electrica Guaracachi S.A.                         (1,714)                    (2,046)

Net cash inflow from financing activities                        4,043                     15,865


Increase in cash and                                             1,925                      4,937
  cash equivalents during period
Cash and cash equivalents at                                     3,179                        424
  beginning of period
Cash and cash equivalents at                                     5,104                      5,361
  end of period




RURELEC PLC


Notes to the Interim Statement
for the six months ended 30 June 2007



1. Basis of preparation


This interim statement is unaudited and does not constitute Statutory Accounts
within the meaning of Section 240 of the Companies Act 1985. Statutory Accounts
for the year ended 31 December 2006 have been filed with the Registrar of
Companies. The auditors have made a report on those Statutory Accounts under
Section 235 of the Companies Act 1985. The auditors' reports were unqualified
and did not contain a statement under Section 237 (2) of the Companies Act 1985.
The financial information contained in this interim statement has been prepared
in accordance with the Listing Rules of the Financial Services Authority and all
International Reporting Standards ('IFRS') in force and expected to apply to the
Group's results for the year ended 31 December 2007 and on interpretations of
those Standards released to date.


2. Accounting policies


This interim statement has been prepared in accordance with the Group's IFRS
accounting policies. These policies were set out in the Group's Financial
Statements for the year ended 31 December 2006.


3. Negative goodwill


In the period to 30 June 2006, Negative Goodwill represented the excess of the
provisional fair values of the Group's share of the assets less the liabilities
acquired in the acquisition of the 50.00125% interest in Empresa Electrica
Guaracachi S.A. over the cost of acquiring that interest.


4. Earnings per share


a) Basic and diluted                     30/6/07           30/6/06

Weighted average number of shares           '000              '000
Basic earnings                            69,072            68,289
Diluted earnings                          69,072            68,289

Profit for the period                    £98,000        £6,179,000
Basic and diluted EPS                      0.14p             9.05p


The profit figure used in the calculation of the basic and diluted earnings per
share for the 6 months period ended 30 June 2006 included £5.572m of Negative
Goodwill as set out in note 3 above.


b) Underlying earnings per share excluding the one-off adjustment for Negative
Goodwill (see note 3 above)


Underlying profit for the period         £98,000          £607,000
Underlying EPS                             0.14p             0.88p



RURELEC PLC


Notes to the Interim Statement
for the six months ended 30 June 2007 (continued)



5. Consolidated statement of changes in equity

                                                       30/6/07     30/6/06
                                                         £'000       £'000

Opening shareholders' funds                             34,263       5,695
Proceeds from issue of shares                            2,780      18,670
Total recognised income and expense                       (588)      4,388
Dividend paid                                           (1,613)          -
Closing equity shareholders' funds                      34,842      28,753


On 21 May 2007, the company issued 3,400,000 Ordinary 2p shares at 59.25p per
share and on 29 June 2007, the company issued 1,600,000 Ordinary 2p shares at
57p per share, raising £2.78m net of expenses.


6. Net asset value


Based on the number of shares in issue at 30 June 2007 and the equity
attributable to the shareholders of the company, the net asset value per share
at 30 June 2007 was 47.5p (30 June 2006 - 42.1p).


7. The Board of Directors approved this interim statement on 24 September 2007.
This interim statement has not been audited.


8. Copies of this statement are being sent to all shareholders. Copies may be
obtained from the company's registered office, 5th Floor, Prince Consort House,
Albert Embankment, London SE1 7TJ.



For further information contact:

Rurelec PLC             Daniel Stewart          Parkgreen Communications
Peter Earl, CEO         Stewart Dick            Clare Irvine / Lindsay Bancroft
[phone]     [phone]     [phone]



Rurelec PLC is an AIM listed British company established to develop rural
electrification projects in South America. It is managed by a team with a strong
track record in developing power projects worldwide.


Since the company's flotation on AIM in August 2004, the company has acquired
power generation operations in Bolivia and Argentina.




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